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Mortgage Market Share Up at Credit Unions, Nonbanks

As the nation’s mortgage originations have retreated, non-bank lenders continued to gain in market share at the expense of banks. Credit union share also widened.

Residential loan originations by financial institutions and non-bank lenders totaled an estimated $301 billion during the fourth quarter, according to an analysis of industry data collected by Mortgage Daily.

Business slipped from the previous three-month period, when U.S. mortgage production came in at a downwardly revised $311 billion.

Activity inched up, however, from the downwardly revised $297 billion in mortgage production during the fourth-quarter 2013.

Banks were responsible for $152 billion of fourth-quarter 2014 originations, according to an analysis of data provided by the Federal Deposit Insurance Corp.

Retail originations accounted for $86 billion of bank volume, while $66 billion was generated through the wholesale channel.
However, only half of reported wholesale originations were used in the overall calculation of industry production.

Another $32 billion in fourth-quarter home lending came from the nation’s credit unions based on origination data supplied by Callahan & Associates. The total included $26 billion in first mortgage production and $6 billion in other real estate loans.

The remaining $150 billion was originated by state-licensed non-bank lenders, according to data reported by the
Conference of State Bank Supervisors.

For all of 2014, originators of all types closed $1.128 trillion in home loans, sinking from the downwardly revised $1.898 trillion funded in 2013.

Banks’ share of the mortgage market worked out to 40 percent in the final quarter of last year,
the same as three months earlier but well off the 46 percent share commanded by banks a year earlier.

Full-year 2014 market share
at FDIC-insured financial institutions was 41 percent, tumbling from a 54 percent market share in 2013.

Quarterly credit union mortgage market share, however, moved up to 11 percent from 10 percent in the third quarter and in the fourth-quarter 2013.

For all of last year, credit union market share was 10 percent, climbing from just 7 percent the previous year.

A 50 percent, fourth-quarter market share for non-bank lenders was the same as in the third quarter but up from 44 percent in the final three months of 2013.

Non-bank originators were responsible for 48 percent of full-year 2014 mortgage production, surging from 39 percent a year earlier.

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