Credit Union Australia and Savings & Loans have stopped offering loans through brokers, with Police & Nurses cutting loans sourced through brokers to five per cent.The credit union market is small, but in total residential loans outstanding the three credit unions represent around 40 per cent of the credit union market, or around ten billion dollars.The lack of sufficient resources to fund loans and the smaller margins through brokers due to commissions are the reasons.A fifth of Savings & Loans mortgage sales had historically been sourced through the broker channel, but since April 1, this avenue is closed.Tony Innes, acting chief executive officer for S&L said, "We were getting good growth from the broker market, but it was probably a victim of its own success."Fred Huis, chief executive officer at Police & Nurses Credit Society said loans sourced through brokers are down to around five per cent."We have cut back the broker network substantially. I haven't closed it completely, but we have looked at who our best brokers are and we have cut it down to about two or three."Australian Central Credit Union has the second largest residential book, with managing director Peter Evers saying they will now manage for profitability, rather than growth."We made a decision in September 2007 to reduce volumes of home loans based on the pricing mismatch, because the cost of money was going through the roof."We have gradually wound back our home loan volume growth expectations each month. We have down-scaled our appetite for growth, while the market is like this."The March 2008 quarter new mortgage volumes were the worst in two years for Australian Finance Group, Australia's largest broker, which writes around one in ten mortgages.