Who Are The Biggest Mortgage Providers In The U.S.

The number of mortgage loan originations has also been on the rise, allowing lenders to add to the growth from mergers and acquisitions. First quarter 2009 production among American mortgage lenders increased by 73 percent over the fourth quarter 2008, based on earnings data analyzed by MortgageDaily.com. As a result, there have been some changes to the lists of top originators and top servicers helping consumers achieve the American dream of homeownership.

Wells Fargo is the nation’s biggest lender. First-quarter originations more than doubled from the fourth quarter level. Volume, including Wachovia Corp. was up 22 percent over the same quarter in 2008 – prior t the merger of the two banks. Well Fargo is the second largest servicer in the nation. Despite this, Market Intelligence Center reports that Wells Fargo shares are trading at or near a 52-week low, however, the recent offering of 341 million share of common Wells Fargo raised more than $8.6 billion.

“We’re known and admired for our conservative financial position, and a disciplined acquisition strategy that will not change,” said John Stumph, Wells Fargo President and CEO in October 2008. “In that regard, we look forward with great anticipation and confidence to completing our merger with Wachovia Corporation by year end. The union of of our two companies with provide compelling value for all our stakeholders, including Wachovia’s team members, combining the industry’s best in service and best in sales, an unbeatable combination that will create the nation’s premier coast-to-coast financial services company.”

More recently, Ed Terpening wrote on the Wells Fargo – Wachovia Blog (May 8, 2009) that “We knew from the start there’d be an awkward period between the time the merger started and the time you saw results. [....] As John said, we’re taking 2-3 years to complete this transition because we want to do what’s right for you, our customers. No sense in rushing this and making a mess in the process.”

The merger is apparently already yielding positive results, because the combined company is leading the nation in mortgage originations.

Another acquisition that has paid off in growth has been MetLife’s acquisition of most of First Horizon National Corp.’s mortgage operations. MetLife business more than doubled from the fourth quarter, landing the company at Number 8 in originations. First Horizon’s mortgage operations weren’t MetLife’s only acquisition during 2008. MetLife also acquired EverBank Reverse Mortgage LLC and selected assets from First Tennessee Bank in 2008.

Bank of America Corp. (BoA) topped the list of the biggest servicers. The company also saw originations rise by 79 percent, making it the second biggest originator in the country. BoA’s acquisition of Countrywide Financial Corp. last year has not paid off with originations from the most recent quarter down 20 percent from combined production a year ago.

JPMorgan Chase & Co., the third biggest originator and servicer, also declined despite improving activity by 30 percent over the fourth quarter. Fundings were 44 percent below the level JPMorgan and Washington Mutual Bank reported in the first quarter of 2008 before their merger.

The 10 biggest originators during the first quarter 2009 were:

1.Wells Fargo
2.Bank of America
3.JPMorgan Chase
4.Citigroup Inc.
5.SunTrust Bank Inc.
6.U.S. Bank Home Mortgage
7.Residential Capital LLC
8.MetLife
9.Flagstar Bank
10.PHH Mortgage
With a total combined portfolio exceeding $140 billion, the 10 biggest servicers as of March 31, 2009 were:

1.Bank of America
2.Wells Fargo
3.JPMorgan
4.Citigroup
5.ResCap
6.PNC
7.U.S. Bank
8.SunTrust Bank Inc.
9.OneWest Bank
10.PHH

JPMorgan Chase, MetLife and US Bancorp were among the banks recently identified by regulators as not needing any additional capital. Only MetLife had not previously received funds from the Troubled Asset Relief Program, or TARP, DailyFinance reports.

By Jay Hammond of Blown Mortgage.