Black mortgage originators operating in South Africa's township property market are being hit by a double whammy.Firstly, they are still struggling to crack the white-dominated mortgage origination market and, secondly, the National Credit Act (NCA) is severely hampering their business.

Mortgage originators are sensitive to the performance of the property market and any dip in house sales puts pressure on their revenue because they earn commissions from acting as middlemen between lenders and homebuyers.The originators have become so powerful in the property market such that they generate about 70% of home loan sales for the banks.

The bigger the volumes they generate, the greater the profits they make.Nakedi Magodielo, the managing director of Agang Bond Originators, said the NCA had worsened their plight.He appealed to the government to intervene in the property industry to forcefully create opportunities for black originators, developers and estate agents.

Full report: http://www.fin24.co.za/articles/defa...518-25_2180176