During the final three months of last year, non-bank mortgage lenders saw a decline in market share — resulting in a drop for full-year market share.
Mortgage originators, including financial institutions and non-banks, generated $517 billion in loan production from Oct. 1, 2016, through year-end 2016.
Business slowed from the third quarter, when $568 billion in loans were originated. But activity accelerated from
$375 billion in the fourth-quarter 2015.
The findings were based on a Mortgage Daily analysis of home lending activity at banks, credit unions and non-banks.
Fourth-quarter 2016 production included $236 billion in loans closed by banks, according to data provided to Mortgage Daily by the Federal Deposit Insurance Corp. Bank volume dipped from $245 billion three months earlier but stood well above $157 billion a year earlier.
The retail portion of fourth-quarter 2016 bank production was $120 billion, and wholesale lending
made up the other $116 billion.
Credit unions were responsible for $48 billion of the latest activity, Callahan & Associates reported to Mortgage Daily. Home lending at credit unions was mostly unchanged from the third quarter but higher than $38 billion in the final quarter of 2015.
First mortgage originations accounted for $40 billion of the most-recent credit union business, while the remaining $7 billion was “other real estate.”
A visual analysis of a graph provided by the Conference of State Bank Supervisors put approximate production by non-bank, state-licensed originators at $233 billion during the final-three months of last year. Non-bank activity slid from $275 billion the prior quarter but was up from $180 billion a year prior.
Fourth-quarter 2016 non-bank volume roughly consisted of $8 billion in home-improvement loans, $105 billion in refinances and $120 billion in purchase financing.
Based on quarterly volume, banks have seen their share of mortgage originations increase at the expense of non-bank lenders.
