Federally insured banks saw their share of the U.S. mortgage market fall 4 percentage points last year, and non-banks were the beneficiaries.
All types of residential loan originators generated an estimated $375 billion in mortgage production during the three months ended Dec. 31, 2015.
The estimate was based on a Mortgage Daily analysis of home lending data for banks, credit unions and non-bank mortgage banking firms.
Business retreated compared to the previous period, when an estimated $435 billion in residential loans were originated. Third-quarter 2015 volume was revised up from $430 billion originally reported.
Prior-period revisions were based on either an improved analysis or
improved, more current data.
But activity picked up from the final quarter of 2014, when production was estimated at an upwardly revised $344 billion.
Banks originated $157 billion, or 42 percent of the fourth-quarter 2015 total, based on data provided by the Federal Deposit Insurance Corp.
Another $38 billion was originated by credit unions according to numbers provided by Callahan & Associates, putting credit union market share at 10 percent.
A visual observation of graphic data published by the
Conference of State Bank Supervisors indicates that fourth-quarter 2015 originations at state-licensed non-banks totaled approximately $180 billion.
As shown in the following table, banks’ quarterly market share of mortgage originations has slipped over the past four quarters to the benefit of non-banks.
