How Much In Outstanding Mortgage Loans Did The Largest U.S. Banks Service As Of Q2?

September 21st, 2016 by Trefis Team
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The five largest U.S. banks serviced more than $3.5 trillion in outstanding mortgages in the U.S. at the end of Q2 2016.

CB_QA_MortgageServ_16Q2

The table above captures the break-up of total mortgages serviced by each of these banks in terms of ownership. In addition to servicing mortgages that they originate and continue to hold on their balance sheet, each of these banks also service a sizable portfolio of third-party mortgages. As detailed here, third-party mortgages make up more than $2.6 trillion of the $3.5 trillion in total mortgages serviced by these 5 banks – 75% of the total portfolio.

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Also, data compiled by the New York Fed shows that there was $8.84 trillion in outstanding mortgages in the U.S. at the end of Q2 2016. This would imply that the 5 largest banks service just over 40% of all outstanding mortgages in the U.S. More interestingly, with its total mortgage servicing portfolio of $1.6 trillion, Wells Fargo has a market share in excess of 18%. Also, the fact that regional banking player U.S. Bancorp has a larger mortgage servicing portfolio than financial behemoth Citigroup highlights the former’s focus on the mortgage industry over recent years.

The chart below captures U.S. Bancorp’s third-party mortgage servicing portfolio over the years, and also includes our forecast for it. You can see how changes to this portfolio affects our price estimate for the bank by modifying this chart.

See the links below for more information about the 5 largest U.S. commercial banks:

Notes:
1) The purpose of these analyses is to help readers focus on a few important things. We hope such lean communication sparks thinking, and encourages readers to comment/ ask questions on the comment section
2) Figures mentioned are approximate values to help our readers remember the key concepts more intuitively. For precise figures, please refer to the full Trefis analysis for U.S. Bancorp | Wells Fargo | JPMorgan | Bank of America | Citigroup

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