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. 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.
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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