Biggest Mortgage Lenders Make Healthy Gains

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Home lenders saw a healthy quarter-over-quarter increase in mortgage production — with some companies making bigger gains than others. There was some jockeying for position among the top-10 players.

Based on data collected for the Mortgage Daily Second Quarter Mortgage Origination Survey, residential loan originations during the three months ended June 30 increased 24 percent from the first quarter.

However, industry production has slowed on a year-over-year basis, with overall business declining by 51 percent from the second-quarter 2013.

Mortgage Daily estimates total second-quarter 2014 volume among all U.S. lenders was $296 billion.

Wells Fargo & Co. held on to its No. 1 status.

Bank of America Corp. wrestled the No. 3 spot away from Quicken Loans Inc., while PennyMac Mortgage Investment Trust leapt past Citigroup Inc. to become the seventh-biggest mortgage lender.

BB&T Corp. made it into the top 10 — bumping Nationstar Mortgage LLC out in the process.

The 10-biggest lenders accounted for 46 percent of industry originations.

Originations By Lender (in billions)

Lender Q2 2014 Q1 2014 Q2 2013
U.S. Total (est.) $295.5 $237.7 $556.3
Wells Fargo $47.0 $36.0 $112.0
JPMorgan Chase & Co. $17.6 $17.7 $49.5
BofA $13.7 $10.8 $26.8
Quicken $13.1 $11.2 $23.8
U.S. Bank Home Mortgage $11.6 $9.3 $23.9
PHH Mortgage $9.3 $7.4 $14.8
PennyMac $7.4 $5.1 $8.9
Citi $6.2 $5.2 $17.2
Flagstar Bancorp Inc. $6.0 $4.9 $10.9
BB&T $4.7 $3.8 $9.3

The biggest increase between the first and second quarters was had by BECU: 102 percent. Next was McLean Mortgage Corp., where business jumped 74 percent, then 65 percent at Lake Michigan Credit Union, 63 percent at HomeStreet Inc. and 59 percent at Churchill Mortgage.

Among the nation’s largest lenders, only Chase and Nationstar saw a sequential decline.

Compared to a year earlier, Stonegate Mortgage Corp., which saw business soar 59 percent; BECU, where activity climbed 9 percent; and New American Funding, which had a 5 percent gain, were the only entities to report a year-over-year increase.

Lenders generally reported strong pipelines heading into the third quarter. Economic forecasts from Fannie Mae, Freddie Mac and the Mortgage Bankers Association suggest that third quarter originations will come in around 4 percent higher than in the second quarter.

However, the Mortgage Market Index report from LoanSifter/Optimal Blue and Mortgage Daily points to a 3 percent decline.

Moving along to mortgage servicing, Fannie Mae reports that the country’s collective servicing portfolio as of the second quarter was $9.889 trillion.

Wells Fargo continued to dominate this category, and the top-10 servicer ranking was mostly unchanged.

What is worthy of noting, though, is that the size of the servicing portfolios at nine of the 10-biggest mortgage servicers eroded from the first quarter.

No. 10 Quicken was the only servicer to grow its portfolio.

Servicing Portfolios By Lender
as of June 30, 2014
(billions/includes investment loans/
excludes sub-servicing)

U.S. Total $9,889.0
Wells Fargo $1,792.0
Chase $952.7
BofA $760.0
Ocwen Financial Corp. $380.7
Nationstar $378.6
Citi $349.1
U.S. Bank $292.3
Walter Investment Management Corp. $188.4
PNC Financial Services Group Inc. $161.0
Quicken $148.3


Mortgage Daily Staff


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