Although origination profit margins continue to be strong, the nation's largest servicers posted weak gains on their housing balances in the second quarter, according to exclusive survey figures compiled by National Mortgage News in its Quarterly Data Report product.
In the new 2Q edition of the QDR, NMN found that the nation's largest processors of housing receivables — Bank of America, Wells Fargo & Co., and Chase — posted year-over-year gains of 4%, 2% and -6%, respectively.
Combined, the three firms control about 53% of the market, according to NMN's calculations in the QDR. At June 30, B of A ranked first among all home loan servicers with a balance of $2.197 trillion followed by Wells ($1.81 trillion), and Chase ($1.35 trillion).
Among the top 10 servicers, the only companies showing strong growth in the second quarter were U.S. Bank Home Mortgage, Bloomington, Minn. (up 17% to $199 billion), and Branch, Banking & Trust (up 14% to $91 billion).
This Spring NMN reported that consumers increasingly are paying down their mortgage debts, and in 1Q servicing balances in the U.S. fell for the first time in well over a decade.
The decline in housing debt was caused by mortgages being removed from the calculations due to foreclosure, but also the phenomena of 'cash in' refinancings where a mortgagor actually reduces his mortgage debt when he refis by putting more cash into the deal.
