Wells and BoA Continue Dominance in GNMA Servicing

Wells Fargo Home Mortgage and Bank of America continued to dominate the GNMA servicing business in the second quarter with a combined market share north of 46%, according to new figures released by the Government National Mortgage Association. Wells serviced $192 billion of GNMA MBS at June 30, ranking first with BoA finishing second with $153 billion. (JPMorgan Chase was a distant third with just $57 billion.) At year-end the two had a combined market share of 44%. Issuance of GNMA securities has boomed this year with outstanding MBS at $740 billion, a 16% jump in six months. The securities include FHA and VA loans and carry higher servicing fees than Fannie Mae and Freddie Mac products. Wells had a 25.8% market share compared to 20.5% for BoA. BoA has three different units represented in the rankings including BAC Home Loan Servicing of Simi Valley, which is a master subservicer for GNMA itself. BACHLS recently was assigned a 180,000 unit GNMA portfolio by the agency. The rights belonged to Taylor, Bean & Whitaker, which is now in bankruptcy. The TBW assignment, however, is not represented in the June ranking because the assignment occurred after that date.