Nonbanks dominate top 2021 mortgage lender list
March 28, 2022 4:40 PM
Minority borrowers increased their share of purchase mortgages received in 2021, but still trail white borrowers by a huge margin, an examination of initial Home Mortgage Disclosure Act data found.
Nonbanks took up an increasing share of lending activity compared to banks in 2021, a separate look at the data found.
Purchase mortgages totaled 4.5 million last year, along with 7.1 million of refinancings and 467,723 home improvement loans originated, according to the LendingPatterns report from ComplianceTech. While the purchase total increased from the 4.2 million produced in 2020 and home improvement rose from 394,717, refis fell from 7.3 million.
While all groups of home buyers recorded an increase in units originated, the incremental shifts in market share still do not reflect the percentage of the U.S. population for each.
Nonbanks took up an increasing share of lending activity compared to banks in 2021, a separate look at the data found.
Purchase mortgages totaled 4.5 million last year, along with 7.1 million of refinancings and 467,723 home improvement loans originated, according to the LendingPatterns report from ComplianceTech. While the purchase total increased from the 4.2 million produced in 2020 and home improvement rose from 394,717, refis fell from 7.3 million.
While all groups of home buyers recorded an increase in units originated, the incremental shifts in market share still do not reflect the percentage of the U.S. population for each.
Incremental gains for minorities
Of those purchase mortgage loans originated last year, whites received 3.1 million or 68.4%, according to the LendingPatterns report from ComplianceTech. This was down from a 71.8% share for 2020, a 72.3% share in 2019 and 73.2% share in 2018.
Over the same time period, the share for Blacks grew to 8.3% from 7.7% in 2020, 7.4% in 2019 and 7.1% in 2018; and for Hispanics, it rose to 14.5% from 13.8%, 13.3% and 12.3% respectively. The year-over-year growth in share for Asians to 8.4% from 6.2% reversed a trend of declining share; in 2019, this group had a 6.6% share and in 2018, a 6.9% share.
Those totals, however, are still out of line with the overall U.S. population, according to the 2020 Census. Whites made up 61.6% of the total U.S. population, while Blacks were 12.4%, Hispanics, 18.7% and Asians, 6%.
The difference in race for refinanced mortgages reflects the lower share of homeownership for minorities.
Almost three-quarters of the 7.1 million refis last year were made to white borrowers, while Blacks received a 6.3% share, Hispanics, 10.8%, and Asians, 7.6%.
Over the same time period, the share for Blacks grew to 8.3% from 7.7% in 2020, 7.4% in 2019 and 7.1% in 2018; and for Hispanics, it rose to 14.5% from 13.8%, 13.3% and 12.3% respectively. The year-over-year growth in share for Asians to 8.4% from 6.2% reversed a trend of declining share; in 2019, this group had a 6.6% share and in 2018, a 6.9% share.
Those totals, however, are still out of line with the overall U.S. population, according to the 2020 Census. Whites made up 61.6% of the total U.S. population, while Blacks were 12.4%, Hispanics, 18.7% and Asians, 6%.
The difference in race for refinanced mortgages reflects the lower share of homeownership for minorities.
Almost three-quarters of the 7.1 million refis last year were made to white borrowers, while Blacks received a 6.3% share, Hispanics, 10.8%, and Asians, 7.6%.
Nonbanks continue to lead
Meanwhile, as nonbanks continued to dominate the top of the listings for originators, loanDepot moved into the No. 3 spot for units produced, a separate HMDA data analysis from Polygon Research found.
Freedom Mortgage slipped down the tables, while a pro forma number for the combination of Caliber and NewRez puts it at fifth for units produced and sixth for dollar volume originated. New Residential'spurchase of Caliber was announced in April 2021.
Rocket Mortgage was the top on both charts, with $340.2 billion in volume and 1.2 million in units, up 8.6% and 8.3% respectively.
United Wholesale recorded a 24.1% rise in dollar volume to $226.9 billion and 16.7% rise in units to 654,191.
Freedom Mortgage slipped down the tables, while a pro forma number for the combination of Caliber and NewRez puts it at fifth for units produced and sixth for dollar volume originated. New Residential's
Rocket Mortgage was the top on both charts, with $340.2 billion in volume and 1.2 million in units, up 8.6% and 8.3% respectively.
United Wholesale recorded a 24.1% rise in dollar volume to $226.9 billion and 16.7% rise in units to 654,191.
Bank trio benefits from higher balances
However, showing the difference in bank versus nonbank mortgage business models, Wells Fargo was No. 3 by dollars, at $141.1 billion (up 11.2%), but No. 4 in units originated at 375,137 (up 17.4%). Banks are more likely to originate higher balance jumbo mortgages, largely to maintain other relationships with the customer.
Only one other bank is on both tables, JPMorgan Chase, ranked 6th by units (7th if Caliber and NewRez' data is combined for a total of 368,866) and 5th by dollars at $112.2 billion. Bank of America is on the dollar table at No. 7 with $83.7 billion originated.
By dollars, the Caliber/NewRez combo did $105.4 billion on a pro forma basis.
LoanDepot leaped Wells Fargo on the units table, up 32.2% to 389,545; by dollar volume, it grew by nearly 36% to $136.7 billion.
But the big gainer was Home Point Financial, which reported an 81.1% rise in dollar volume to $74.4 billion. Its unit total increased 68% to 209,325.
A year ago, after UWMimposed a ban on brokers selling to Rocket and Fairway Independent, Home Point CEO Willie Newman noted in an earnings call that his company was receiving a significant increase in broker inquiries.
Only one other bank is on both tables, JPMorgan Chase, ranked 6th by units (7th if Caliber and NewRez' data is combined for a total of 368,866) and 5th by dollars at $112.2 billion. Bank of America is on the dollar table at No. 7 with $83.7 billion originated.
By dollars, the Caliber/NewRez combo did $105.4 billion on a pro forma basis.
LoanDepot leaped Wells Fargo on the units table, up 32.2% to 389,545; by dollar volume, it grew by nearly 36% to $136.7 billion.
But the big gainer was Home Point Financial, which reported an 81.1% rise in dollar volume to $74.4 billion. Its unit total increased 68% to 209,325.
A year ago, after UWM
