DALLAS, March 10, 2014 /PRNewswire/ -- The largest mortgage lender last year did more than twice as much new business as the next biggest player. In the final three months of 2013, almost all mortgage bankers saw a sharp drop in originations.
Residential loan originations were down more than 14% in 2013. That finding was based on Mortgage Daily's Mortgage Origination Survey and an analysis of earnings data at mortgage-related firms.
Behind the drop in mortgage production was an increase in interest rates. Conforming 30-year fixed rates increased from 3.666% at the end of 2012 to 4.808% by the end of last year, according to the Mortgage Market Index from LoanSifter and Mortgage Daily.
Wells Fargo maintained its stranglehold on the No. 1 lender spot, closing 19% of all home loans last year.
The five-biggest mortgage lenders were collectively responsible for 43% of 2013's activity.
Originations (billions)
| Lender |
2013 |
| Wells Fargo |
$351 |
| JPMorgan Chase & Co. |
$168 |
| Bank of America Corp. |
$90 |
| U.S. Bank Home Mortgage |
$85 |
| Quicken Loans Inc. |
$79 |
Among all lenders, loan volume was down 37% between the third and fourth quarters.
The only company among firms tracked by Mortgage Daily to report an increase from the third quarter was Stonegate Mortgage.
The top-five concentration for the fourth quarter was almost a 42% market share.
Originations (billions)
| Lender |
Q4 2013 |
| Wells Fargo |
$50 |
| Chase |
$24 |
| BofA |
$14 |
| U.S. Bank |
$13 |
| Quicken |
$13 |
Mortgage production by all lenders is likely to retreat 14% in the first quarter based on the Mortgage Market Index.
Wells Fargo serviced 19% of outstandings as of Dec. 31, the biggest market share of any servicer.
The combined market share of the five largest servicers was 45%.
Three servicers that have seen massive growth in their servicing portfolios are Nationstar, Ocwen Financial Corp., and Walter Investment Management Corp.
Servicing Portfolios
(billions - includes investment loans)
| Servicer |
As of 12/31/13 |
| Wells Fargo |
$1,829 |
| Chase |
$984 |
| BofA |
$810 |
| Ocwen |
$465 |
| Nationstar |
$393 |
Full 2013 report (complimentary for reporters):
http://www.MortgageDaily.com/stories/Originations031014.asp?spcode=pr
Quarterly mortgage production by lenders:
http://www.mortgagedaily.com/FundingsConforming.asp?spcode=pr
Mortgage origination news at:
http://www.mortgagedaily.com/Fundings.asp?spcode=pr
About Mortgage Daily
Founded in 1998 by 20-year mortgage industry veteran Sam Garcia, Mortgage Daily is a leading online source of mortgage news and mortgage statistics for the mortgage industry. Visit Mortgage Daily at www.MortgageDaily.com.
CONTACT:
Holly Himelright
[email protected]
214.521.1300
SOURCE MortgageDaily.com
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