Servicing Consolidation Keeps Gathering Steam

Consolidation in the residential servicing sector picked up steam in the second quarter, according to exclusive survey figures compiled by Mortgage Servicing News.

The nation's top five servicers, as a group, serviced 44.65% of the nation's residential loans, a market share gain of almost five points compared to the same period a year ago.

Meanwhile, the nation's No. 1 ranked servicer, Countrywide Home Loans, Calabasas, Calif., is on pace to crack the $1 trillion mark in servicing some time in the third quarter.

At the end of June, Countrywide serviced $964.4 billion in home mortgages, a 33% gain from the same period last year.

Countrywide has a housing receivables (servicing) market share of 12.09%, according to MSN and its affiliate, the Quarterly Data Report.

The nation's top 10 servicers, as a group, had a combined market share of 58.69% compared to 52.62% a year ago - a gain of more than six points.

MSN and the QDR estimate that the nation's consumers have racked up nearly $8 trillion in mortgage debt on their one-to-four family residences. (The figure includes both first and second liens and represents loans backed by single family dwellings as well as condominiums and cooperatives.)

After Countrywide, the nation's top 10 servicers are Wells Fargo Home Mortgage, San Francisco ($905.5 billion/up 22%); Washington Mutual, Seattle ($739 billion/up 3%); Chase Home Finance, Edison, N.J. ($571.6 billion/up 6%); and CitiMortgage, O'Fallon, Mo. ($379.8 billion/up 63%).

All of the top five servicers are depositories or are affiliated with depositories.

Among the top 10 there are two non-depositories: GMAC Mortgage, Horsham, Pa., and PHH Mortgage, Mount Laurel, N.J. (GMAC, though, has a depository affiliate.)

Among the top 20, IndyMac Bancorp, Pasadena, Calif., had the strongest growth rate in receivables, 68%. CitiMortgage had the second-highest growth rate with 63%.

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