How Much Of The Total U.S. Housing Debt Is Held By The Country’s 5 Largest Banks?
The five largest U.S. banks reported just under $1 trillion in total mortgages as a part of their balance sheet in Q3 2016. Notably, this is just 11% of the total housing debt in the U.S.
The table above captures the U.S. residential mortgages reported by each of these banks, and also includes home equity loans. Although Bank of America and JPMorgan each have small portfolios of non-U.S. mortgage loans, they are negligible in size to their U.S. mortgage portfolios. Citigroup’s U.S. mortgage portfolio is more geographically diversified, with non-U.S. mortgages comprising almost 40% of the total loan portfolio. The total U.S. housing debt figure is extrapolated from data compiled by the New York Fed.
As we pointed out in an earlier article, these 5 banks service just over 40% of all outstanding mortgages in the U.S. – but they have just 11% of all U.S. mortgages on their balance sheet. The reason for this is that all these banks have a sizable third-party mortgage servicing portfolio for which they do not bear the lending risk – and therefore they do not report these third-party mortgages on their balance sheet. In fact, a bulk of these mortgages are originated by these banks and then sold to government-sponsored enterprises (GSEs) like Fannie Mae and Freddie Mac.
The chart below captures Wells Fargo’s outstanding mortgage 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:
- What Were Total Loan Charge-off Rates For The Largest U.S. Banks In Q2 2016?
- What Was The Total Size Of Outstanding Domestic And Foreign Loans For The Largest U.S. Banks In Q2 2016?
- How Has The Total Loan Portfolio Of The Largest U.S. Banks Changed Over The Last 5 Quarters?
- How Much In Domestic And Foreign Deposits Did The Largest U.S. Banks Hold In Q2 2016?
- How Have Total Deposits For The Largest U.S. Banks Changed Over The Last 5 Quarters?
- How Have The Loan-To-Deposit Ratios For U.S. Banks Trended Over Recent Quarters?
- How Has The Total Loan Portfolio For The U.S. Banking Industry Changed Over The Last 5 Quarters?
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