HOUSINGNEWS REPORT
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and by the Veterans Administration (VA), the riskier corner of housing lending due to no down payment or low down payment loans and poor-credit buyers. Purchase origination loans backed by the FHA and VA have been progressively getting higher, growing from 6 percent of all purchase loans in 2006 to 30 percent in Q3 2016, according to ATTOM Data Solutions. firms are capturing a bigger slice of the overall mortgage market, experts claim. Nonbank lenders like Quicken Loans, which originated 18,753 home loans in the second quarter of 2016, are filling the gap, according to ATTOM Data Solutions. Overall, U.S. financial institutions originated nearly 1.9 million loans on residential properties (1 to 4 units) in the second quarter of 2016, up 26 percent from a two-year low in the previous quarter, but down 4 percent from a year ago, according to ATTOM Data Solutions. Purchase originations increased 1 percent from a year ago — the eighth consecutive quarter with an annual increase — and Home Equity Line of Credit (HELOC) originations increased 5 percent from a year ago — the 17th consecutive quarter with an annual increase. Nationwide, overall lending has plummeted, but nonbank financial
BIG BANKS CEDE MARKET SHARE TO NONBANKS 1-Year Change 5-Year Change Share of Purchase Originations in Q2 2016
4.0%
3500%
3074%
3.4%
3.5%
3000%
3.0%
2500%
2.4%
2.5%
2000%
1.8%
2.0%
1500%
1.4%
1.4%
1.3%
1.5%
1000%
491%
500%
1.0%
235%
25%
38%
46%
0%
0.5%
-15%
-1%
-9% -9%
-64%
-67%
-500%
0.0%
Wells Fargo
Quicken Loans
Caliber Home Loans
Bank of America
Fairway Independent Mortgage
J.P. Morgan Chase
For a variety of reasons, banks want to reduce their footprint in the mortgage market. It’s a direct result of the settlements with
the federal government.” Guy Cecala | CEO of Inside Mortgage Finance
increases in purchase loan originations in Q2 2016 were Cleveland, Ohio (up 31 percent); Kansas City (up 21 percent); Boise, Idaho (up 20 percent); Dayton, Ohio (up 17 percent); and Rochester, New York (up 15 percent), according to ATTOM Data Solutions . Other markets with strong purchase loan originations include: Columbia, South Carolina (up 13 percent); Atlanta (up 13 percent); Milwaukee (up 12 percent); Deltona-Daytona Beach-Ormond Beach,
Florida (up 11 percent); and Colorado Springs (up 11 percent).
Mortgage Fraud Suits Continue Guy Cecala, publisher and CEO of Inside Mortgage Finance , one of the leading mortgage trade publications, said one reason why nonbanks are gaining market share is because retail lenders keep getting sued by the federal government. Big depository institutions don’t want to make FHA-insured loans because they
Markets With Biggest Increase in Purchase Loans Overall, the biggest year-over-year
ATTOM Data Solutions • P3
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