Home lending retreated last year. Non-banks lost quarterly market share to financial institutions as a surge in quarterly wholesale lending drove up banks’ share.
During the final-three months of last year, mortgage originations at financial institutions and non-bank lenders came to an estimated $494 billion.
Business at U.S. home lenders
retreated compared to the third quarter, when single-family loan production worked out to an estimated $506 billion.
An even bigger decline was recorded versus the fourth-quarter 2016, when an upwardly revised $574 billion in home loans were closed.
Included in fourth-quarter 2017 originations was $211 billion in bank lending, according to data provided to Mortgage Daily by the Federal Deposit Insurance Corp. Bank activity included $79 billion in retail production and $133 billion in wholesale lending — the most since the third-quarter 2013.
Another $45 billion in fourth-quarter 2017 volume came from credit unions based on data reported to Mortgage Daily by Callahan & Associates. Credit union business was comprised of $36 billion in first mortgages and $8 billion in “other real estate” loans.
In addition,
non-bank home lenders were responsible for around $238 billion of the latest three-month period’s activity based on a visual analysis of a graph provided by the Conference of State Bank Supervisors. Non-bank volume consisted of $144 billion in loans to finance a home purchase, $89 billion in refinances and $5 billion in home-improvement loans.
Banks’ share of fourth-quarter 2017 originations was 43 percent, widening from 41 percent a year earlier. Credit union share rose to 9 percent from 8 percent. But non-bank share thinned to 48 percent from 51 percent.
