What Was The Market Share Of The Largest U.S. Banks In Terms Of Mortgage Origination For Q3?

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The 5 largest U.S. banks originated residential mortgages worth $139 billion in Q3 2016 – representing around 25% of total mortgages originated in the U.S. for the quarter.

CB_QA_MortgageOrig_16Q3

*Total U.S. Originations includes fresh mortgages as well as mortgage refinances as compiled by the Mortgage Bankers Association [1]

Mortgage origination figures for these banks continued to improve for a second consecutive quarter, after witnessing depressed activity levels in Q4 2015 and Q1 2016. While this was in line with the improvement in the overall mortgage industry, it can be seen that these banks have seen their market share fall from almost 30% a year ago to under 25% now.

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CB_QA_MortgageOrigChange_16Q3

Notably, Citigroup figures 5th on this list despite being substantially larger in size than regional banking group U.S. Bancorp. While Citigroup has been forced to shrink its mortgage business in the wake of the economic downturn to response to heavy losses, U.S. Bancorp has grown its mortgage unit considerably – something that helped it overtake Citigroup in early 2012 with the onset of the mortgage refinancing boom.

Wells Fargo has retained its position as the largest mortgage originator in the country from before the economic downturn. In fact, the bank tightened its grip in the industry after the recession thanks to its acquisition of Wachovia – originating one in every four mortgages in the country in early 2010. Although weak conditions in the mortgage space have dragged down Wells Fargo’s market share to around 12.5% now, the bank still remains significantly ahead of its peers. You can see how changes to Wells Fargo’s mortgage origination volumes affect our price estimate for the bank by making changes to the chart below.

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

See full Trefis analysis for U.S. Bancorp | Wells Fargo | JPMorganBank of America | Citigroup

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Notes:
  1. MBA Quarterly Origination Estimates, MBA.org []