Mortgage Daily Logo

Government Share of Mortgage Market FallsChase$38.9$37.1$51.1BofA$156.1$306.5Bank of America$1,763.0

Mortgage News

Residential loan originations fell in 2011, and some lenders saw more of a decline than others — though a few firms eked out a gain. The government’s role in residential finance was reduced last year as private capital crept back into the market. Half of all the U.S. mortgage market last year was controlled by three lenders.

Fourth-quarter residential originations by all lenders were an estimated $381 billion, based on an analysis of production activity by Mortgage Daily.

Volume was up from an estimated $317 billion closed by U.S. lenders in the third quarter.

The biggest U.S. lender in the fourth quarter was Wells Fargo & Co., which reported that volume climbed to $120 billion from the third quarter’s $89 billion.

Next was JPMorgan Chase & Co., where business grew to $39 billion from $37 billion.

No. 3, Bank of America Corp., saw production fall more than any other top-10 lender: 34 percent. The contraction came as the company decided to exit correspondent lending.

The best performance by a top-10 originator was U.S. Bancorp, where production climbed 51 percent from the third quarter.

Top-10 Originators Q4 2011

Lender Q4-2011 Q3-2011 Q4-2010
Wells Fargo $120.0 $89.0 $128.0
Chase $38.9 $37.1 $51.1
BofA $22.4 $33.8 $86.8
Citi $21.1 $17.0 $21.8
U.S. Bank $17.4 $11.5 $19.6
Ally $16.5 $15.6 $23.2
PHH $15.6 $12.7 $18.4
Quicken $10.8 $8.4 $10.2
Flagstar $10.2 $6.9 $9.2
Provident Funding $8.7 $6.3 $9.5

Home-loan production from all lenders during the entire year of 2011 was around $1.3 trillion, falling from approximately $1.6 trillion originated the previous year.

There were $206 billion in loans insured by the Federal Housing Administration last year, giving FHA a market share of around 16 percent. In 2010, FHA insured roughly 19 percent of all mortgages.

Loans that were purchased or guaranteed by Fannie Mae or Freddie Mac accounted for approximately 74 percent of 2011 business, lower than the 78 percent share a year earlier.

The government owns FHA and controls Fannie and Freddie, making the United States responsible for around 90 percent of home loans originated last year. But that was lower than the approximately 97 percent market share held by the government in 2010.

Wells Fargo dominated the annual rankings despite that its volume was off 8 percent from 2010.

BofA’s 49 percent year-over-year decline was the most of the big players, though the company still landed in the No. 2 spot for 2011.

BofA, Chase and Wells Fargo were responsible for about half of all production during 2011.

PHH saw annual production rise 6 percent for the year, the best annual performance of top-ranking lenders.Top-10 Servicers as of Dec. 31 2011

Top-10 Originators Full-Year 2011
(in billions)

Lender 2011 Q2010
Wells Fargo $357.0 $386.5
BofA $156.1 $306.5
Chase $146.7 $156.8
Citigroup $63.2 $61.9
Ally $56.2 $69.5
PHH $51.9 $49.0
U.S. Bank $49.1 $55.8
Quicken $30.0 $29.0
Flagstar $26.6 $26.5
BB&T $23.7 $24.9

Based on mortgage servicing portfolios, including third-party servicing, mortgages owned and home-equity products owned, Wells Fargo’s $1.822 trillion portfolio was the biggest of any servicer.

Around $10.3 trillion in outstanding U.S. loans are being serviced by all mortgage servicers.

Top-10 Servicers as of Dec. 31 2011
(in billions)

Lender Portfolio
Wells Fargo & Co. $1,822.0
Bank of America $1,763.0
JPMorgan Chase & Co. $1,100.2
Citigroup Inc. $531.9
Ally Financial $354.3
U.S. Bancorp $228.2
PNC Bank $188.1
PHH Corp. $182.4
SunTrust Bank Inc. $157.8
OneWest Bank (as of June 30) $118.9

Related Posts

Centex Home Equity Announces Name and Brand Change to National Mortgage, LLC

Third-Quarter 2012 Mortgage Litigation Index

Lawsuits involving excessive fees, servicing fees and loan fees beyond state maximums. Defendant Plaintiff Court Amount Overview Case Title Case Number Date Filed Date of Activity Link to Story Fannie Mae and Freddie Mac Orangeburg County, Richland County, South...

Centex Home Equity Announces Name and Brand Change to National Mortgage, LLC

Net Branch Lawsuits

Litigation involving net branch operations. Defendant Plaintiff Court Amount Overview Case Title Case Number Date Filed Date of Activity Link to Story PHH Mortgage Corp. Mathews Supreme Court of Virginia na Court held that the term "branch office" includes not only...

Centex Home Equity Announces Name and Brand Change to National Mortgage, LLC

Whistleblower Lawsuits

Litigation related to loan servicing, including escrow issues, transfer of servicing and servicing borrowers in bankruptcy and foreclosure.   Defendant Plaintiff Court Amount Overview Case Title Case Number Date Filed Date of Activity Link to Story Bank of...

Popular posts

How Long Does It Take to Refinance a Mortgage
How Long Does It Take to Refinance a Mortgage

So, you’re interested in refinancing your mortgage. Maybe you want some extra capital to do that home project you’ve always dreamed of, interest rates are nearing record lows, or you want to start consolidating debt. Regardless of the motivation behind the refinance,...

How Does Refinancing a Mortgage Work
How Does Refinancing a Mortgage Work

A home purchase is considered an investment, and a robust one at that. Savvy owners are constantly looking for new ways to reduce debt, save money, pay less in interest, and ultimately build equity. Refinancing is one way to leverage your investment and do just that....

What Does It Mean to Refinance Your Home
What Does It Mean to Refinance Your Home

You can think of refinancing your mortgage as a debt redo. Essentially, you’ll swap out the existing loan for a new one - ideally with better terms and conditions. Only this time it could help you save money on high mortgage payments, rather than just borrow it....

Setting up the Utilities in My New House
Setting up the Utilities in My New House

All the tedious, time-consuming paperwork has been signed, sealed, and delivered. Your belongings are packed into what seems like a million boxes and you have a solid plan to haul all your existing furniture to the new place. Just as your boxes and furniture need to...

When Is My First Mortgage Payment Due?
When Is My First Mortgage Payment Due?

Navigating your way through a brand-new mortgage loan can be a difficult task, especially for first-time homeowners.   After handing over a large sum of money for the down payment and closing costs, it’s important to pay attention to the timing of your first...

Newsletter

Don’t worry, we don’t spam