3Q Production Tally: Just Shy of $500 Billion

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.