Wells Fargo Continues to Dominate Correspondent Lending
Wells Fargo increased its market share in correspondent lending to nearly 37 percent of all loans purchased during the second quarter of 2012, according to new figures from National Mortgage News and the Quarterly Data Report, National Mortgage News reported Sept. 26.
Despite Wells Fargo’s exit from the wholesale market this summer, the megabank continued to deflect rumors that it also might quit or limit its correspondent purchases.
During the second quarter, Wells Fargo’s share in the correspondent lending sector approached 37.5 percent and set a new record for both the bank and the industry, National Mortgage News reported. One year ago, Wells Fargo’s market share was 21.8 percent.
Wells Fargo’s biggest competitor in the correspondent lending sector was Chase, the mortgage unit of JPMorgan Chase, which bought $17.7 billion in loans to Wells Fargo’s $61 billion. Chase’s market share is 10.85 percent.
According to National Mortgage News, the nation’s top 30 correspondent buyers purchased $126 billion of loans during the second quarter — a 76 percent gain from the same time a year ago.