He wrote that Wells Fargo posted 23% linked-quarter volume growth while JPMorgan's volume declined sequentially, both well behind the industrywide estimate for a 54% linked-quarter increase in mortgage volume. and Wells Fargo came in higher than expected, Bose George, an analyst for Keefe Bruyette & Woods wrote in a July 14 note. Mortgage banking results from JPMorgan Chase & Co.
Cecala said that even with the higher credit scores, the nonbank's standards tend to be looser than banks'.Īs banks report second-quarter earnings, results from companies with significant mortgage operations suggest banks are likely continuing to focus more on profitability than volume in 2020. While Quicken's approval rate was similarly high at 71.2%, the lender reported a weighted average credit score of 747 in its originations. For example, United Shore approved 82.6% of its applications, compared to an approval rate of 28.2% at Wells Fargo. United Shore - and virtually all other nonbanks on the list of top mortgage originators in 2019 - approved a much higher portion of applications than banks did. Michigan-based United Shore Financial Services LLC posted the largest year-over-year growth among top 20 originators with an increase of 159.2% to $107.95 billion in funded loans. 1 lender across all loan types earlier this year. However, Cecala said Quicken Loans overtook Wells Fargo as the No.
Inside Mortgage Finance attributes the origination to the sponsor lender while the federal HMDA database attributes the loan to the correspondent lender. Correspondent lenders originate the loan but then immediately sell to a sponsor lender such as Wells Fargo. 2 lender in 2019, behind Wells Fargo, likely due to a differing approach to correspondent lending. Wells is more focused on profitability and banking customers rather than just building mortgage originations for the sake of mortgage originations," Guy Cecala, publisher of Inside Mortgage Finance, said in an interview.Ĭecala said his publication ranked Quicken as the No. " more interested in building market share and building business than the big banks, particularly Wells. That increase was simply outstripped by Quicken's growth of 73.9%. Even though Wells Fargo's market share dropped by 27 basis points, the bank's funded loan amount jumped 26.2% from the previous year. Historically low rates have contributed to a refinance boom that has generated significant revenue for lenders. It has been heady times for mortgage originators over the last year and appears likely to remain so through year-end.
Nonbank lenders tend to have higher approval rates due to modestly looser underwriting and a more agile operating model that enables rapid hiring to meet demand. Six of the top 10 spots went to nonbank originators. The change at the top of rankings, as measured by data from the Home Mortgage Disclosure Act, follows a broader trend of nonbanks gaining market share in the mortgage market. 1 lender by mortgage originations, just in time for its IPO sales pitch.