Among all types of mortgage originators, quarter-over-quarter volume was down. But home lending at federally insured banks saw the greatest erosion.
From July 1 until Sept. 30, home lenders — including non-bank firms, banks and credit unions — originated an estimated
$430 billion in residential loans.
U.S. mortgage production slowed compared to during the three months that comprised the second quarter, when estimated volume totaled $464 billion.
But lending ascended from the third-quarter 2014,
when mortgage originations were an estimated $344 billion.
Production data from 2014 collected as part of Home Mortgage Disclosure Act requirements had economists at Fannie Mae, Freddie Mac and the Mortgage Bankers Association significantly revising up their mortgage origination estimates for 2014 and subsequent years.
In an effort to account for the higher numbers, Mortgage Daily has adjusted its calculation of residential origination data from the Federal Deposit Insurance Corp. This caused prior-period figures for production and market share to be revised.
FDIC data indicates that banks were responsible for approximately $190 billion of third-quarter 2015 business.
Bank business fell from around $210 billion three months earlier but was stronger than a year earlier, when the total was $157 billion.
The latest bank production included $102 billion in retail originations and $88 billion in wholesale lending.
Another $40 billion of third-quarter 2015 mortgage business was generated by credit unions, according to data supplied by Callahan & Associates.
Credit union originations decreased from $43 billion in the second quarter but were up from $33 during the third-quarter 2014.
The remaining approximately $200 billion of originations in the most-recent period came from state-licensed non-bank mortgage firms.
Like financial institutions, non-banks also suffered a quarter-over-quarter decline, with business down from the prior period’s production of $211 billion.
Also like their depository counterparts, non-bank originators lifted activity from the third-quarter of last year, a period when non-bank originations were just $155 billion.
As illustrated in the following table, market share has been drifting from banks to non-banks.
