We compare the results in the independent mortgage lender market segment.
Consumers who used the TPO channel for a home purchase in 2023 saved money on upfront fees and an average of $10,662 over the life of the loan compared to the retail channel. To aide the comparison, we scoped down the HMDA data to 1-st lien, home purchase, 1-4, sold to the agencies.
TPO Is Gaining in Minority Communities
The TPO channel's market share is steadily increasing in Majority-Minority Census Tracts (MMCTs), reaching 42.3% in the highest-minority areas.
TPO Has Higher Approval Rates
The Independent TPO channel approves more loans in MMCTs (70% approval rate) than the Independent Retail channel (58%), helping more borrowers in underserved communities access financing.
