3Q Production Tally: Just Shy of $500 Billion

NOV 12, 2012 9:35am ET
Partner Insights

The nation’s top five mortgage bankers posted strong residential production growth in the third quarter but were dragged down by laggard Bank of America which continues to de-emphasize its role in residential finance.

Wells Fargo & Co., JPMorgan Chase, U.S. Bancorp, Bank of America and Citigroup, as a group, funded $251 billion of loans in 3Q, a 31% increase from the same period in 2011, according to figures compiled by National Mortgage News and the Quarterly Data Report. B of A, however, originated $21 billion of product, a 38% decline year-over-year.

(Although NMN is still crunching numbers for a final 3Q tally, it estimates  that residential production topped $490 billion in the quarter.)

Citigroup, which has trimmed its role in third-party lending somewhat, saw residential fundings decline by 12% compared to 3Q 2011.

But among this exclusive group, U.S. Bank was the stand-out in terms of growth, increasing fundings by 142% over the past 12 months. (U.S. Bank Home Mortgage funds through three different channels.)

Wells Fargo, of course, continues to dominate the market in terms of volume, originating $139 billion, a 54% improvement. Its production is almost three-times that of its closest competitor, JPMorgan Chase.

Wells is in the process of exiting the wholesale channel which accounts for roughly 5% of its total fundings. It will remain a correspondent lender and warehouse provider.

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