For the second quarter in a row, banks have increased their share of the mortgage origination market at the expense of non-bank mortgage firms.
From the period that started on April 1, 2016, and ended on June 30, residential loan volume by all U.S. lenders came to an estimated $488 billion.
Home-lending production leapt when compared to the first quarter of this year, a period that saw an estimated $354 billion in mortgages originated.
Activity also accelerated versus the second quarter of last year, when an estimated $478 billion in loans were closed.
Second-quarter 2016 mortgage production included $213 billion in
mortgages originated by banks, according to data provided to Mortgage Daily by the Federal Deposit Insurance Corp.
Bank lending climbed from $152 billion three months earlier and inched up from $210 billion a year earlier.
The most recent
bank total was comprised of $111 billion in retail originations and $101 billion in wholesale lending.
Another $44 billion of total second-quarter 2016 production
came from credit unions based on data provided by Callahan & Associates to Mortgage Daily.
Credit union business grew from $33 billion generated in the prior quarter and inched up from $43 billion a year prior.
The latest credit union production included $36 billion in first mortgages and $8 billion in other real estate loans.
Non-bank originators were responsible for $232 billion of total second-quarter lending, according to data reported by the Conference of State Bank Supervisors.
Non-bank production
increased from $169 billion in the first-quarter 2016 and $225 billion in the second-quarter 2015.
Roughly $132 billion of the most-recent non-bank total was purchase financing,
$95 billion was refinances and $5 billion was home improvement.
Banks garnered a
nearly 44 percent market share in the second quarter of this year, increasing each quarter since the fourth-quarter 2015 when it stood at less than 42 percent.
Credit union market share was just under 9 percent versus just over 9 percent in the first quarter.
Non-bank market share was 47 percent in the most-recent three-month period, slipping each quarter since the final three months of last year, when it was a little more than 48 percent.
Market share among the three types of entities was relatively unchanged from the second quarter of last year.
