According to recently released Mortgage Lender Rankings (MLR) reports, residential loan originations by U.S. lenders fell 19 percent in the second quarter of this year and 20 percent over the same time last year. The decline was fueled mainly by Wells Fargo, Bank of America and JPMorgan & Chase, the three biggest lenders in the country[1]. Wells Fargo loan origination was down 24 percent from the first quarter of this year, while BofA’s volume contracted 29 percent. However, smaller lenders did report small increases in lending, most of 5 percent or less. Overall, the top five lenders in the country reported a decreased market share of around 63 percent, down from more than 2/3 in the first quarter of 2011[2].
Do you think that it is a good sign that the big lenders are showing declines while smaller lenders are posting gains?
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[1] http://www.sacbee.com/2011/08/08/3823150/home-lending-tumbles.html
[2] http://www.marketwatch.com/story/home-lending-tumbles-2011-08-08?reflink=MW_news_stmp
The public has had enough in dealing with the large, non-responsive, “who cares about you?” lenders. The small botique lenders, who are qualified, are caring, responsive and do good follow up with their customers are prospering. They are also a pleasure for the real estate professionals to do business with.
Michael’s right. As a Realtor, I’m looking forward to the day (and I’m not holding my breath) where current homeowners will act as a bank and Lease to Own their homes thereby completely leaving the big banks out of the equation. This transaction is possible if homeowners realize making a profit from the sale of their house in the twenty tens, isn’t going to happen.
Sorry. The solution suggested by the above writer, does not work. It seems he
forgot the Due-on-Sale written on every bank’s mortgage loans.
No, I haven’t forgotten Anthony, but you have a point. I think I should have added that the buyer who leases the house for a while will be locked in a contract with the lessor until they can qualify for the that 30yr fixed for the remainder (due on sale) and effectively eliminating no goals, no education tire-kickers. -and there are many in NEPA.