Five Mortgage Lenders Dominate Mortgage Loan Market

October 10 2010 (Chris Moore)
Wells Fargo Bank
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:

Residential Lenders Ranked by Total Volume

Dollars in Millions
Rank Company 2010Q2
1
Wells Fargo & Company
$82,996
2
Bank of America
$74,075
3
Chase
$33,687
4
Ally Bank/Residential Capital, LLC (GMAC)
$13,160
5
CitiMortgage, Inc.
$12,169
6
U.S. Bank Home Mortgage
$10,685
7
PHH Mortgage
$10,057
8
SunTrust Bank
$6,995
9
MetLife Home Loans
$5,517
10
Branch Banking & Trust Company
$5,394