Nonbank Lenders Continue to Dominate Mortgage Landscape
A recent analysis by Motley Fool of Home Mortgage Disclosure Act data has revealed that nonbank lenders continue to increase their hold on the mortgage landscape, with many taking prime spots among the top 10 mortgage originators in the U.S.
In the top 10, just four banks with a full suite of financial services were represented. The highest-ranking traditional bank, Bank of America, came in at No. 3, sandwiched between two nonbank lenders, online giant Rocket Mortgage and Fairway Independent Mortgage Corporation.
Here are the top 10 mortgage lenders in the U.S.:
1. United Wholesale Mortgage – Originated 294,387 mortgages in 2023, worth a total of $108.5 billion.
2. Rocket Mortgage – Originated 288,558 mortgages in 2023, worth a total of $76.2 billion.
3. Bank of America – Originated 91,846 mortgages in 2023, worth a total of $28.5 billion.
4. Fairway Independent Mortgage Corporation – Originated 86,334 mortgages in 2023, worth a total of $27 billion.
5. CrossCountry Mortgage – Originated 83,452 mortgages in 2023, worth a total of $29.6 billion.
6. U.S. Bank – Originated 72,124 mortgages in 2023, worth a total of $25.7 billion.
7. Navy Federal Credit Union – Originated 71,421 mortgages in 2023, worth a total of $14.8 billion.
8. Citizens Bank – Originated 67,550 mortgages in 2023, worth a total of $15.6 billion.
9. PNC Bank – Originated 66,913 mortgages in 2023, worth a total of $19.2 billion.
10. LoanDepot – Originated 65,388 mortgages in 2023, worth a total of $21.5 billion.
Nonbank lenders, such as United Wholesale Mortgage and Rocket Mortgage, have managed to outmaneuver traditional banks and credit unions in the mortgage origination market. These nonbank lenders often offer more flexible underwriting standards, lower fees, and a wider range of loan products, which has made them attractive to borrowers.
For borrowers, it’s essential to research and compare mortgage offers from various lenders to find the best deal. The top lenders listed above may not always be the best fit for every borrower, and there may be other lenders that offer more favorable terms or better customer service.
The mortgage origination process is just the first step in the homebuying journey. Mortgage servicing is the ongoing management of a mortgage, which includes collecting payments, property taxes, and insurance premiums. Some lenders serve as both mortgage originators and servicers, while others may sell their mortgages to third-party servicers.
When shopping for a mortgage, it’s crucial to understand the differences between mortgage origination and mortgage servicing and to ask questions about how your loan will be handled after closing.