For the first time this decade home loan broker Mortgage Choice has failed to report growth in its share of the mortgage market.Since December 2000, when its book was $5.4 billion, representing 1.7 per cent of total outstanding mortgages, the company has reported growth in system share each year.At December 31, 2008, its loan book stood at $34.4 billion, representing a 3.45 per cent share of the market. That is the same share it had a year earlier.The inevitable question is whether mortgage brokers are becoming less useful to borrowers in a market where five lenders write 90 per cent of the loans.Mortgage Choice chief executive Paul Lahiff said the "broking proposition is no less valid."He said the market was still competitive, despite the big reduction in the number of lenders, and brokers were still able to assist borrowers find the best rate and conditions. Brokers also did a lot of administration work for clients.He said lenders still saw brokers as an important distribution channel. On current figures, ANZ is originating 44 per cent of home loans through brokers, St George 42 per cent, Commonwealth 39 per cent, Westpac 38 per cent and NAB 23 per cent.Mortgage Choice yesterday reported a net profit of $8.3 million for the six months to December, 22 per cent down on the previous corresponding period.The broker was hit by a slowdown in loan settlements and lower commissions, following big changes to commission structures last year. Settlements were $4.1 billion in the half, down 21 per cent from settlements of $5.2 billion in the six months to December 2007. Origination commission was $25.6 million, down from $34.8 million in the previous corresponding period. Trailing commission was up from $39.9 to $43.3 million over the same period. Mortgage Choice chief financial officer Tony Crossley said the full impact of commission changes was yet to be felt. Some lenders have stepped their changes and have yet to complete the process.New commission structures reward high levels of efficiency and Lahiff said Mortgage Choice had been through a review with its franchisees. A number of franchises that were not doing much business or did not meet efficiency benchmarks (such as electronic lodgement) have been put in "cold storage".Lahiff said consolidation in the industry meant that Mortgage Choice had the opportunity to promote itself as the only large independent brokerage franchise. The company will push that line in its marketing this year.He said positive signs for the market were the strong pick-up in home loan approvals in November and December and the re-emergence of large numbers of first home buyers. Despite this the company's guidance is for full-year earnings to be down 20 to 25 per cent on the 2007/08 result.