Top 5 Servicers Near 50%

The grinding wheel of servicing consolidation continued unabated in the second quarter with nation's top five residential firms increasing their market share to 48.7%. According to exclusive survey figures compiled by Mortgage Servicing News and the Quarterly Data Report, the top five have a combined servicing portfolio of $4.19 trillion, compared to a home receivables market of $8.604 trillion.

The nation's two top-ranked servicers - Countrywide Home Loans, Calabasas, Calif., and Wells Fargo Home Mortgage, San Francisco - together control almost 27% of the market.

A year ago the top five had a combined servicing market share of 44.67%. All of the top five are depositories and only one, Washington Mutual of Seattle, is a thrift.

At the end of June, Countrywide serviced $1.196 trillion in loans with WFHM close behind at $1.116 trillion. (The figures include subservicing contracts.)

WaMu ranked third with $756.6 billion, followed by Chase Home Finance, Iselin, N.J. ($639.6 billion); and CitiMortgage, O'Fallon, Mo. ($480.5 billion). (See rankings in this issue.) Among the top five, CitiMortgage had the strongest growth rate in servicing, 27%. (There has been talk in the industry that the servicing-hungry CitiMortgage is vying for the $19 billion portfolio being offered by Irwin Mortgage, Fishers, Ind.)

WaMu, which has been restructuring its mortgage operations all year, had the weakest growth among the top five with 2%.

Just three firms among the top 30 servicers experienced a decline in receivables with the rest posting growth rates of 1% to 67%. One firm had zero growth. (c) 2006 Mortgage Servicing News and SourceMedia, Inc. All Rights Reserved. http://www.mortgageservicingnews.com http://www.sourcemedia.com

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