Wells Fargo Top Mortgage Lender as Volume Improves

August 9, 2010 No Comments »

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Wells Fargo retained the title of “top mortgage lender” in the second quarter as lending volume improved slightly from a quarter earlier, according to an analysis from MortgageDaily.com.

The San Francisco-based bank and mortgage lender saw $81.5 billion in second quarter production, beating out rivals Bank of America and Chase.

There was no ranking change involving the top eight lenders, but Flagstar moved past Quicken loans to rank ninth, and BB&T fell out of the top 10.

U.S. mortgage lenders saw loan origination volume increase by 6.50 percent from the first quarter, but the numbers were still off 37.9 percent from a year ago.

The industry drop could be partially attributed to a decrease in FHA loan demand, which was down from both the first quarter of 2010 and the second quarter of 2009.

The FHA endorsed 401,981 loans for $71.6 billion in the second quarter, down from 422,568 loans for $77.9 billion in the previous quarter and 519,567 loans for $98.1 billion during the same period last year.

Reverse mortgage demand also declined from $8.1 billion a year ago to just $3.9 billion.

But things could turn around in the third quarter thanks to the ridiculously low mortgage rates currently on offer.

“Recent data indicate loan pipelines have strengthened, suggesting third-quarter originations will come in even stronger,” said Mortgage Daily Publisher Sam Garcia, in a release.

“Also, many borrowers might see a psychological threshold being broken as fixed rates teeter below 4 percent — potentially fueling demand for more refinance activity.”

But the big questions remains whether there are many homeowners out there who haven’t already refinanced.

Top 10 Mortgage Lenders Second Quarter 2010

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