Mortgage lending is a central part of the housing industry. The largest players in the home loan space include popular banks like Wells Fargo and Chase, and nonbank mortgage companies that you might be familiar with, such as Rocket Mortgage and loanDepot.
The federal government requires these companies and other financial institutions to submit reports ab,out the mortgages consumers apply for. These reports are anonymized so they don’t contain identifiable consumer data and are disclosed publicly in the Home Mortgage Disclosure Act (HMDA) database.
If you’re shopping around for a mortgage, you may want to consider a large, well-established mortgage lender. These lenders often provide streamlined service, a wider selection of loan programs and competitive interest rates, in addition to other services that may not be offered by smaller lenders.
Largest Mortgage Lenders In the U.S.
Here are the largest mortgage lenders in the U.S. by dollar amount and volume, according to HDMA data.
Largest Mortgage Lenders in the U.S. by Dollar Amount, 2022, HMDA Data
Largest Mortgage Lenders in the U.S. by Volume, 2022, HMDA Data
Largest Nonbank Mortgage Lenders
Banks are one of the first places many consumers think of when they’re ready to apply for a mortgage. After all, institutions like Chase and Wells Fargo are household names.
But banks aren’t your only option when it comes to borrowing money for a home. Plenty of nonbank lenders issue billions of dollars in mortgages every year, as the tables below show.
Largest Nonbank Mortgage Lenders in the U.S. by Dollar Amount, 2022, HMDA Data
Largest Nonbank Mortgage Lenders in the U.S. by Volume, 2022, HMDA Data
It’s worth noting that Home Point Financial won’t appear on any future top lender lists, and you can’t apply for a loan with the company. Home Point sold its origination business on May 1, 2023, and Mr. Cooper agreed on May 10, 2023, to buy the company’s outstanding stock—pending regulatory approval.
What’s the Difference Between a Lender and Nonbank Lender?
A nonbank lender is, of course, a type of lender. Nonbank lenders have to work harder to earn customers’ business because they may not be as widely known as your preferred big-name bank. To do this, nonbank lenders typically offer different loan products and have different underwriting standards than banks.
Plus, banks have other lines of business to earn money from, so when there’s less demand for home loans, they can shift their focus to credit cards or personal loans. Nonbank mortgage lenders still need to sell mortgages.
How Nonbank Mortgage Lenders Compare to Bank Mortgage Lenders
To give you an idea of the similarities and differences between nonbank and bank mortgage lenders, here are four examples.
- United Wholesale Mortgage offers four different types of bank statement loans as of July 2023. These loans could help well-qualified self-employed borrowers take out as much as $3 million with a debt-to-income (DTI) ratio as high as 90%. UWM also offers a 1% down program to help more borrowers qualify for loans.
- Guaranteed Rate offers bank statement loans, foreign national loans, physician loans, interest-only loans, renovation loans and jumbo loans.
- Flagstar Bank offers a wide variety of loans—almost every type of conventional, FHA, VA or USDA mortgage. Some banks offer fewer options within these broad, “safe” categories. Lenders know they can sell their conventional conforming loans to Fannie Mae or Freddie Mac and get these loans off their books. And the agency loans are partially backed by a government guarantee.
- PNC Bank’s offerings were competitive with Guaranteed Rate’s. PNC originates high-net-worth jumbo loans, physician loans and low down payment loans that don’t require private mortgage insurance (PMI).
You should be aware of nonbank lenders if you’re shopping for a mortgage. When you apply not just with different lenders but different types of lenders, you may be more likely to find the deal you’re looking for.
How To Apply for a Nonbank Mortgage
Some nonbank lenders are wholesale lenders, meaning they originate loans through mortgage brokers and bankers. You can’t apply for a mortgage from United Wholesale Mortgage yourself; you’ll have to go through a mortgage professional. That professional, usually a broker, can also get quotes from other lenders and see who can offer you the best loan terms.
A bank lender can’t do that. If you apply with Chase, you’re either getting a mortgage from Chase or getting rejected by Chase.
Most major nonbank lenders originate loans through a combination of wholesale, retail and correspondent channels.
You can get retail and correspondent loans through a mortgage broker or banker or by applying directly. Some companies, like Rocket Mortgage and loanDepot, are among the largest online mortgage lenders.
The largest lenders aren’t necessarily the best mortgage lenders (though some can be). The only reason to consider size when choosing a mortgage lender is if you trust social proof.
Largest Bank Mortgage Lenders
Finally, in case you’re curious, here are the largest bank mortgage lenders in the U.S.
Largest Bank Mortgage Lenders in the U.S. by Dollar Amount, 2022, HMDA Data
Largest Bank Mortgage Lenders in the U.S. by Volume, 2022, HMDA Data
Source : forbes
