He then sells the borrowed stock through the same broker,and the proceeds of the short sale earn interest at a broker loan
rate, which is currently approximately 5 percent.
In the broker-financed transaction, the broker loan
could be increased to cover the tax liability.
The average broker loan
size has increased over the last five years
Figure 16: Mortgage broker loan
size has increased 27
E[acute accent]In this newly created position, Winters will establish and oversee all facets of broker loan
operations including working with other origination executives to develop coordinated and effective broker-originated loan programs, setting annual production goals and evaluating broker loan
activities for quality and efficiency.
An example of this new generation of broker portals is Houston-based Aegis Mortgage Corporation's Aegis Broker Loan
Enabler (ABLE) portal.
The Company serves over 10,000 brokers with online broker loan
search and productivity tools that are linked to over 77,000 loan programs nationwide.
All of IndyMac's broker loan
submissions are made online, says Wagner.
The Company's total broker loan
production during the three months ended March 31, 2004 was $1.
Steinberg will join ABFS as an executive vice president, responsible for helping to build the Company's expanding broker loan
origination channel across the country.
Liberty is also using GHR's Wholesale Origination Web site to streamline broker loan
Of the total broker loan
production during the three months ended September 30, 2002, mortgage loan origination through the Company's traditional regional broker office network was $465.