California Home to Biggest Mortgage Bankers MortgageDaily.com reports analysis of second quarter earnings data
RISMEDIA, July 26, 2006—Two California lenders share the title of biggest residential mortgage banker in the country, according to a preliminary analysis of second quarter earnings data by MortgageDaily.com, a leading source of online mortgage news.
Wells Fargo & Co. reported second quarter production of $116 billion -- its highest level since 2003. The increase leaves the bank sharing the title of biggest residential mortgage banker with Countrywide Financial Corp. -- which also reported $116 billion in quarterly originations. Countrywide's business improved nearly $13 billion from the first quarter.
But San Francisco-based Wells is poised to take the lead during the third quarter because its pipeline on June 30 was $13 billion better than its Mar. 31 pipeline, whereas Calabasas-Calif.-based Countrywide's June 30 pipeline of $65 billion was barely changed from the prior quarter.
Seattle-based Washington Mutual Inc. retained its spot as the No. 3 biggest residential mortgage banker during the latest period, with $51.1 billion in fundings. But a jump in secondary market purchases landed New York-based JPMorgan Chase & Co. close behind at $50.5 billion.
Other mortgage companies to report a healthy increase in originations from the first quarter include Bank of America, Citigroup and National City Corp.
Downey Financial Corp., however, reported a 26 percent decline in second quarter volume -- noting an increase in its minimum initial payments on ARMs with payment-options has hurt business.
Wachovia Corp. announced its fundings were $15.9 billion, $1 billion better than the first quarter. The Charlotte, N.C.-based company is slated to acquire Golden West Financial Corp. -- which reported its second quarter production remained flat at nearly $12 billion.
On the servicing side, Wells just announced a deal to buy a $140 billion servicing portfolio from Washington Mutual -- boosting its total servicing portfolio to $1.25 trillion and catapulting it past Countrywide -- which currently has the largest residential servicing portfolio at $1.196. |
