“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 $84.7 billion then, an 86% drop. Here are the numbers for the big originators, then and now, all in billions. The bottom row shows how much their volume has declined since 2010.
|Wells||JP Morgan||U.S. Bank||BofA||Citi||Flagstar|
|Q4 2014||$ 44.0||$23.0||$10.4||$11.6||$ 6.7||$6.6|
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|