“Today, just five banks, all Too Big to Fail, control 83.2% of the U.S. mortgage market and about 90% of U.S. mortgages are insured or guaranteed by the federal government: FHA, VA, Fannie Mae, and Freddie Mac. That’s not a free and fair marketplace, it’s a mortgage lending oligopoly tacked on to a government mortgage insurance business…
…And how could it be “safe and sound” for Wells Fargo alone to control nearly 40% of all U.S. mortgages, when history shows time and again that it is a risky and volatile business?”, Mike Perry, former Chairman and CEO, IndyMac Bank
Excerpt from February 2015 Mortgage Industry Newsletter:
- Bank of America reported mortgage originations of $11.6 billion for the 4th quarter, but I looked up their numbers from Q4 2010 and they did $84.7 billion then, an 86% drop. Here are the numbers for the big originators, then and now, all in billions. The bottom row shows how much their volume has declined since 2010.
| Wells | JP Morgan | U.S. Bank | BofA | Citi | Flagstar | |
| Q4 2010 | $128.0 | $50.8 | $19.6 | $84.7 | $21.8 | $9.2 |
| Q4 2014 | $ 44.0 | $23.0 | $10.4 | $11.6 | $ 6.7 | $6.6 |
| Decline | -65.6% | -54.7% | -46.9% | -86.3% | -69.2% | -28.2% |
The table below shows the fourth quarter market share for these six lenders. Wells Fargo and J.P. Morgan have a 58.2% market share between them, and these six lenders control 88.9% of the market. When I started in the business, people always commented on what a fragmented industry it was, with no single lender even approaching 5%.
| Wells | J.P. Morgan | U.S. Bank | BofA | Citi | Flagstar |
| 38.2% | 20.0% | 9.1% | 10.1% | 5.8% | 5.7% |
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