TOP 10 U.S. LENDERS, Q2 2016 (PURCHASE LOAN ORIGINATORS)
9,862 9,796 9,064 8,581 8,315
Wells Fargo Quicken Loans
Caliber Home Loans
Bank of America
Fairway Independent Mortgage
J.P. Morgan Chase
share in a market that is also shrinking. Heightened scrutiny of U.S. commercial banks, tighter capital requirements and fear of heavy government-imposed penalties is paving the way for lightly regulated nonbanks to gain a bigger toehold in home loan market.
funds, private investors or banks to make loans, then quickly sell these mortgages to Fannie Mae and Freddie Mac and other buyers, so they can repay their loans and start the process over again. Many nonbank-originated loans are being made to riskier borrowers with low FICO scores, and who make down payments as low as 3 percent of the purchase price of a home.
giant Countrywide Financial, the now defunct subprime lender founded by Angelo Mozilo (Bank of America bought Countrywide for $4 billion in July 2008). PennyMac, a fast-growing nonbank lender, is run by Stanford Kurland, a former Countrywide Home Loans executive and IndyMac director. Stearns, a Santa Ana, California-based nonbank lender, is run by Brian Hale, a former Countrywide division president. And Joshua Adler, who is AmeriHome’s managing director of secondary marketing, held similar roles at Countrywide and Bank of America. Unlike retail banks, nonbank lenders do not take federally insured deposits from consumers to make loans. Instead, they typically borrow from Wall Street hedge
Who’s filling the void?
Nonbanks Grab Market Share as Banks Retreat In California, some of the largest nonbank lenders include PennyMac , AmeriHome Mortgage and Stearns . All three are headquartered in Southern California, the epicenter of last decade’s subprime mortgage lending industry. And all three companies are run by executives who formerly worked at the once-
Nonbank Lenders Dominate Riskier Loans
Depository banks still dominate home lending, but nonbank market share is at an all-time high, according to National Mortgage News . Nonbank lenders dominate the origination of mortgages insured by the Federal Housing Administration (FHA)
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