Mortgage and Nonmortgage Loan Brokers — Business Survival Rate
An estimated 40% of mortgage and nonmortgage loan brokers businesses survive their first 5 years, based on U.S. Census Bureau Business Dynamics Statistics. The annual business closure rate is 16.9%.
Is Mortgage and Nonmortgage Loan Brokers a Good Business to Start?
With a 40% five-year survival rate, mortgage and nonmortgage loan brokers has a below-average survival rate compared to the national average of ~50%. This indicates higher risk of failure — new entrants face significant competitive pressure or challenging economics.
The annual exit rate of 16.9% is elevated. If you're considering entering this industry, ensure adequate capitalization, a clear competitive advantage, and realistic timeline to profitability.
Entry vs. Exit Rates
Annual rate of new businesses opening versus existing businesses closing.
Net negative: more businesses closing than opening (-8.9 pp spread).
Job Creation & Destruction
The industry is losing jobs faster than creating them — which may indicate automation, consolidation, or declining demand. Total employment: 295,465 workers across 12,705 firms.
Want to know how much mortgage and nonmortgage loan brokers businesses actually make?
See full revenue benchmarks for Mortgage and Nonmortgage Loan Brokers →Frequently Asked Questions
- What percentage of mortgage and nonmortgage loan brokers businesses fail?
- Approximately 60% of mortgage and nonmortgage loan brokers businesses fail within their first 5 years. The annual closure rate is 16.9%, with 2,168 firms closing permanently in 2023.
- Is the mortgage and nonmortgage loan brokers industry growing or shrinking?
- The mortgage and nonmortgage loan brokers industry is currently shrinking with a net job creation rate of -7.5% per year. New businesses are entering at 7.9% while 16.9% close annually.
Source: U.S. Census Bureau, Business Dynamics Statistics (2023). Survival rate estimated from annual exit rates.