All that talk about consolidation in the mortgage space is certainly turning out to be quite apparent.
Through the first half of the year, the two largest mortgage lenders accounted for nearly half (45 percent) of all residential home loan originations, according to data compiled by National Mortgage News.
That’s right; Wells Fargo claimed a 24.77 percent first-half market share, followed by Countrywide, I mean Bank of America, with a 19.87 percent share.
The pair brought in a combined $231 billion in loan originations so far this year.
Year over year, Wells Fargo saw loan fundings climb an impressive 63 percent, while Bank of America saw a 40 percent rise.
Of course, the increase can be partially attributed to the acquisitions made by both companies in the past year, along with the record low mortgage rates.
Interestingly, the third biggest mortgage lender through the year was Chase, with just $30.8 billion in loan originations, representing 5.97 percent of the total market share.
You’d think they would experience more growth given the fact that they acquired Washington Mutual, but that doesn’t seem to be the case.
This could have something to do with risk appetite, as evidenced by the New York-based bank’s withdrawal from the wholesale market.