Refinances are steadily dropping, interest rates are rising and purchases are taking over the mortgage market – these top 10 purchase lenders from 2020 may be the best equipped to handle the shifting market.
As last year came to a close, the average rate for a 30-year fixed-rate mortgage sat at 2.67 percent, more than a full percentage point lower than the end of 2019. This drove the refinancing share of total originations by dollar volume to increase 55 percent in 2020 from 34 percent in 2019, according to the Mortgage Bankers Association’s Annual Mortgage Bankers Performance Report.
But now, refinance share is beginning to slip once again as rates rise. Activity in the housing market is beginning to decrease overall as rates rise, but this is especially true for mortgage refinances. Refinance activity has now decreased for nine of the past 10 weeks, as rates have gone from 2.92 percent to 3.27 percent over the same period.
As the mortgage market shifts to purchases, the lenders that dominated mortgage lending in 2020 might be best equipped to handle the increasing purchase activity in 2021.
Using 2020 Home Mortgage Disclosure Act data, iEmergent determined the top mortgage lenders in refinances by volume, excluding multi-family loans. The analysis includes single-family 1-4 residential loans as well as manufactured homes.
Here are the top 10 lenders that dominated purchase lending in 2020:
10. U.S. Bank – $20.15 billion
- Total purchase loans: 48,915
- Average purchase loan size: $411,963
- Percent volume increase from 2019: 23.5 percent
9. Bank of America – $23.21 billion
- Total purchase loans: 49,486
- Average purchase loan size: $469,045
- Percent volume increase from 2019: -33.2 percent
8. Guaranteed Rate – $23.61 billion
- Total purchase loans: 71,185
- Average purchase loan size: $331,602
- Percent volume increase from 2019: 4.5 percent
7. loanDepot – $28.09 billion
- Total purchase loans: 84,805
- Average purchase loan size: $331,288
- Percent volume increase from 2019: 73.7 percent
6. JPMorgan Chase – $28.39 billion
- Total purchase loans: 57,106
- Average purchase loan size: $497,156
- Percent volume increase from 2019: -22 percent
5. Caliber Home Loans – $31.62 billion
- Total purchase loans: 102,625
- Average purchase loan size: $308,108
- Percent volume increase from 2019: 25.1 percent
4. Rocket Mortgage – $36.96 billion
- Total purchase loans: 133,642
- Average purchase loan size: $276,534
- Percent volume increase from 2019: 56.5 percent
3. Fairway Independent Mortgage Corp. – $37.23 billion
- Total purchase loans: 137,392
- Average purchase loan size: $270,990
- Percent volume increase from 2019: 167.1 percent
2. United Wholesale Mortgage – $42.99 billion
- Total purchase loans: 133,077
- Average purchase loan size: $323,009
- Percent volume increase from 2019: 69.4 percent
1. Wells Fargo – $60.12 billion
- Total purchase loans: 118,679
- Average purchase loan size: $506,560
- Percent volume increase from 2019: -36.9 percent
To see the top 10 lenders for refinances in 2020, click here.
To see the top 10 lenders overall for 2020, click here.
Top 10 mortgage lenders by 2020 purchase loan volume
Source: iEmergent.
