GNMA chief Ted Tozer has been trying in vain to get more mortgage firms to issue MBS, but Wells Fargo & Co. continues to increase its grip on the government market.
According to newly released figures, Wells Fargo Bank issued $28.4 billion of GNMA MBS in the fourth quarter of 2011, giving it a stunning market share of 43%. In 4Q 2010 its share was a bit more modest at 32%.
Overall, mortgage bankers issued $64.6 billion of GNMA MBS in the fourth quarter.
As reported by National Mortgage News this week, Wells is already looking at a 4Q overall residential production share approaching 30%.
The bank continues to be a dominant player in the correspondent channel where it buys already funded loans from small to medium sized nonbank funders – especially FHA and VA loans.
The bank recently stopped disclosing its FHA/VA production but it likely has market share in that sector of nearly 40%.
