Nonbanks are gaining on their bank competitors when it comes to the market share of purchase loan originations, according to data collected by Attom Data Solutions.

In the fourth quarter, the three nonbanks among the top five purchase originators nationwide experienced year-over-year upticks in originations, while their bank competitors saw lower volume.

Purchase originations rose 21% at Caliber Home Loans, 19% at Fairway Independent Mortgage Corp. and 4% at Quicken Loans from the fourth quarter of 2015. Meanwhile, purchase loan originations were down 5% at Wells Fargo and 15% at JPMorgan Chase.

In total, Attom reported that there were 595,500 purchase home loans originated during the fourth quarter, which represents a 26% decrease from the previous quarter and a 12% downturn from a year earlier.

Meanwhile, there were 883,836 refinance loans made during the quarter, down 6% from the third quarter but up 20% year over year. This could very well be refinancing's last hurrah, as recent data from the Mortgage Bankers Association shows the refinance share slipping amid higher rates.

"The increase in refinance originations is surprising given the rising interest rates in the fourth quarter, but many homeowners may have been trying to lock in still relatively low interest rates before those interest rates rose further," Attom senior vice president Daren Blomquist said in a news release.

"On the other hand, rising interest rates did seem to have a chilling effect on homebuyers using financing, as evidenced not only by the drop in purchase loan originations but also a corresponding rise in the share of cash buyers, drop in FHA buyer share and a rise in the average down payment percentage in the fourth quarter compared to the previous quarter," Blomquist noted.

Home equity line of credit originations totaled 268,841 in the fourth quarter, a decrease of 16% from the third quarter and 12% from the same period in 2015. Federal Housing Administration loan share dropped to 15.3% of all loans, down from 17.6% a year earlier.

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Jacob Passy

Jacob Passy

Jacob Passy is a reporter with National Mortgage News, covering breaking news in the residential mortgage industry.