Among the five biggest U.S. mortgage lenders last year, three saw their originations fall from the previous year, according to a preliminary analysis of earnings data by MortgageDaily.com.
Countrywide Financial Corp. maintained its standing as the No. 1 residential lender, with a reported $408.2 billion in residential production during 2007. But the mortgage behemoth saw a decline from 2006, when it reported $462.5 billion in volume.
A pending merger between California-based Countrywide and North Carolina- based Bank of America Corp. will create a company that is likely to originate in the neighborhood of between $425 billion and $475 billion a year -- far more than any competitor.
Wells Fargo & Co. maintained its No. 2 spot, though the San Francisco- based giant also reported a drop in annual fundings.
Citigroup Inc., with $151.9 billion in reported originations last year, bumped Washington Mutual Inc. from the No. 5 spot.
Citi, along with JPMorgan Chase & Co. and BoA, actually saw an increase in residential volume from 2006.
JPMorgan is rumored to be considering an acquisition of WaMu. A combined company, with annual originations that would likely be between $275 billion and $325 billion, would have the potential to unseat Wells as the No. 2 biggest U.S. mortgage lender.
"While last year was quite volatile for U.S. mortgage bankers, recent actions by the Federal Reserve as well as a flight to quality by investors has helped push mortgage rates lower," said MortgageDaily.com Publisher Sam Garcia. "As a result, mortgage originators have seen refinance activity pick up recently and are likely to see an increase in funded loans during the first quarter of 2008 compared the fourth quarter 2007." -- MortgageDaily.com
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