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Top Adjustable-Rate Mortgage Lenders

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With fixed-rate mortgages no longer on sale, I thought it’d be useful to take a look at the top adjustable-rate mortgage lenders nationwide.

These are the companies that originated the most ARMs on a loan volume basis for the most recent year data is available.

In 2021, some $611 billion in ARMs were funded by over 3,000 mortgage companies. So it clearly wasn’t a niche product.

But 10 companies stood above the rest. And guess what? They’re all banks!

Read on to see the top 10 lists for more details.

Top Adjustable-Rate Mortgage Lenders in the U.S.

RankingCompany Name2021 Loan Volume
1.Chase$41.8 billion
2.Bank of America$33.5 billion
3.First Republic Bank$23.8 billion
4.Wells Fargo$21.1 billion
5.U.S. Bank$18.0 billion
6.PNC Bank$11.7 billion
7.Charles Schwab Bank$11.6 billion
8.Citizens Bank$11.0 billion
9.Union Bank$10.1 billion
10.Citibank$10.0 billion

Coming in first place was JPMorgan Chase with nearly $42 billion in adjustable-rate mortgages (ARMs) funded in 2021, per HMDA data from Richey May.

That was more than enough to take the top spot, with second place Bank of America mustering $33.5 billion in ARMs.

In third was First Republic Bank (yes that bank) with $23.8 billion funded, making them a huge ARM loan player as well.

And if the recent fallout is permanent, it will create a sizable gap in the residential ARM loan market.

Taking fourth was Wells Fargo with $21.1 billion in ARM origination volume, followed by U.S. Bank with $18 billion.

The rest of the top 10 included PNC Bank, Charles Schwab Bank, Citizens Bank, Union Bank, and Citibank.

For the record, Union Bank was acquired by U.S. Bank in late 2022. So there might be two vacancies in the top 10.

The top nonbank ARM lender was Rocket Mortgage, which originated $6.2 billion in ARMs in 2021.

Top 7/1 ARM Lenders in the U.S.

RankingCompany Name2021 Loan Volume
1.Chase$13.2 billion
2.Bank of America$11.7 billion
3.Wells Fargo$11.1 billion
4.First Republic Bank$8.9 billion
5.Charles Schwab Bank$4.1 billion
6.Union Bank$3.6 billion
7.U.S. Bank$3.1 billion
8.Rocket Mortgage$3.0 billion
9.PNC Bank$2.8 billion
10.NYCB (Flagstar)$2.8 billion

There are a variety of different adjustable-rate mortgages, with the 7/1 ARM perhaps being the most popular lately.

It provides a full 84 months of fixed payments before becoming adjustable.

Leading this category was Chase with $13.2 billion funded, followed by Bank of America with $11.7 billion and Wells Fargo with $11.1 billion.

In fourth was under-fire First Republic Bank with $8.9 billion, and Charles Schwab Bank rounded out the top five with $4.1 billion.

The bottom half of the top 10 included Union Bank, U.S. Bank, Rocket Mortgage, PNC Bank, and New York Community Bank.

Recently, NYCB’s Flagstar Bank unit took over the deposits and certain loan portfolios of failed Signature Bank.

The next biggest nonbank player in the 7/1 ARM game was loanDepot with $2.0 billion funded.

Top 5/1 ARM Lenders in the U.S.

RankingCompany Name2021 Loan Volume
1.Chase$17.3 billion
2.NYCB (Flagstar)$3.4 billion
3.Bank of America$2.6 billion
4.Charles Schwab Bank$2.4 billion
5.State Employees CU$2.3 billion
6.Signature Bank$1.6 billion
7.Luther Burbank Savings$1.5 billion
8.Axos Bank$1.4 billion
9.Wells Fargo$1.4 billion
10.Pacific Premier$1.2 billion

Another popular type of adjustable-rate mortgage is the 5/1 ARM, which provides fixed payments for 60 months.

Once again, Chase led in this category with $17.3 billion funded, blowing away the competition and then some.

In second was NYCB (Flagstar Bank) with $3.4 billion, followed by Bank of America with $2.6 billion.

Fourth place went to Charles Schwab Bank with $2.4 billion and State Employees Credit Union snagged fifth with $2.3 billion.

The North Carolina-based company was the only credit union to make the top-10 list.

Sixth place went to now-defunct Signature Bank and so-called boutique bank Luther Burbank Savings grabbed seventh.

Axos Bank, Wells Fargo, and Pacific Premier Bank rounded out the top ten.

Where to Get an Adjustable-Rate Mortgage?

As you can see from these lists, depository banks dominate adjustable-rate mortgage lending.

So if you’re looking to get your hands on an ARM, instead of a boring old 30-year fixed, a bank might be a good place to look.

In fact, only two nonbank lenders made it into the top-25, Rocket Mortgage and loanDepot.

Banks tend to keep ARMs and other non-agency loans (Fannie/Freddie/FHA/VA) on their own books.

This allows them to offer portfolio loans with their own unique terms that other companies may not.

If you are considering an ARM vs. fixed-rate mortgage, be sure to pay close attention to the spread between products.

This is the difference in interest rate, which will help you determine the potential savings, which must also be measured against the risks of an ARM resetting higher.

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