This story was revised to reflect updated, more accurate data obtained from the Conference of State Bank Supervisors after this story was originally published. The revised CSBS data had the effect of increasing non-bank and overall originations back to 2013 and raising year-earlier market share for non-banks.
Over the past year, the nation’s banks have given up mortgage market share to credit unions. Overall originations were up on a quarter-over-quarter basis.
During the period that started on April 1, 2017, and finished on June 30, U.S. mortgage production from all originator types amounted to an estimated $467 billion.
Single-family lending activity accelerated compared to the first quarter, when residential loan originations came to an upwardly revised $386 billion.
But business fell short of the same three months last year, when home-lending volume was an upwardly revised $532 billion.
Included in second-quarter 2017 originations were $178 billion in loans closed by banks, according to data provided to Mortgage Daily by the Federal Deposit Insurance Corp. Bank business was comprised of $84 billion in retail originations and $94 billion in wholesale lending.
Another $45 billion came from credit unions based on data reported to Mortgage Daily by Callahan & Associates. Credit union activity consisted of $36 billion in first-mortgage production and $9 billion in other real estate loan originations.
The remaining $243 billion was generated by non-bank mortgage firms, according to data reported by the Conference of State Bank Supervisors.
Non-bank production was made up of $166 billion in purchase financing, $72 billion in refinances and $5 billion in home-improvement loans.
Based on the overall data, banks’ share of the mortgage market has fallen to 38 percent in the second-quarter 2017 from 40 percent a year earlier.
Credit union share of home lending inched up to a 10th from 8 percent in the second-quarter 2016.
At 52 percent, non-bank share was the same as during the same-three months in 2016.