October 10 2010 (Chris Moore)
Ten years ago the top five mortgage lenders held approximately 29% of the overall residential mortgage market. Today the top five mortgage lenders hold an estimated 62% of the market. Incredibly, it’s estimated the top 10 mortgage lenders command 72% of the residential mortgage market, up from just shy of 40% 10 years ago.
Surely as a sign of the current economic times, many mortgage lenders and brokers have gone the wayside due to the downturn in the housing market. But this could also have a negative impact when the housing market recovers because less choices means less competition. And some of the large lenders, like Bank of America, are also cutting competition by closing their wholesale divisions which means they will no longer do business with brokers.
According to Mortgagestats.com, here is the list of the top ten residential mortgage lenders through the 2nd quarter of 2010:
|Dollars in Millions|
Wells Fargo & Company
Bank of America
Ally Bank/Residential Capital, LLC (GMAC)
U.S. Bank Home Mortgage
MetLife Home Loans
Branch Banking & Trust Company