Business Insights

HMDA Market Share Analysis: 2016 vs. 2015

October 2017

Independent mortgage companies have captured the majority market share of originations in 2016, according to the HMDA data released on September 28^th. After successfully building market share over the years, independents have finally surpassed commercial banks.

Non-banks now have 46.33% of the market share in 2016, while commercial banks trail them with 44.58%. Independents experienced an increase in market share of 3.49% from 2015, while commercial banks lost 3.09% in market share from 2015.

Market Share Change – Product Type

Market share by product type has shifted towards independents for conventional, government, and jumbo. The independents captured an additional 4.31% in conventional, 3.48% in gov’t, and .08% in jumbo.

The independents now have the majority market share for conventional products. Independents have 47.83% of originations for conventional products, while commercial banks trail with 40.59% (down 3.46% from 2015).

Independents continue to dominate the government products with 74.34% of the market share, while commercial banks trail with only 19.83% (down 3.02% from 2015).

Commercial banks still dominate the jumbo market with 78.16% of originations (down 0.61% from 2015), while independents trail with only 15.43%.

Market Share Change – Purchase/Refinance

Market share for purchase and refinance has shifted towards independents, who have captured an additional 3.30% in purchase and 3.67% in refinance.

Independents now have the majority of originations for both purchase and refinance. Independents have 46.10% of the market share for purchase, while commercial banks trail with 44.92% (down 3.04% from 2015). Independents have 46.54% of the market share for refinance, while commercial banks trail with 44.24% (down 3.11% from 2015).

Market Share Change – Top 20 Lenders

The market share for the top 20 lenders still remains with the commercial banks. A total of seven commercial banks (down one from 2015) are in the top 20, and they make up a total of $362B in production (16.62% of the market share). While a total of 11 independents (up one from 2015) are in the top 20, and they make up a total of $305B in production (14.00% of the market share). The independents within the top 20 lenders have captured an additional 2.45% of the market share, while commercial banks within the top 20 lenders have lost 1.29% of the market share. The top 20 lenders now make up 31.95% of originations, which is up 1.15% from 2015.

Market Share Change – States

Market share shifted towards independents for all states except for North Dakota (-1.05%), and Iowa (-.35%). The states with the biggest shifts towards independents were Florida (4.76%), New Mexico (4.21%), and Colorado (4.16%).

Red = independents with majority share; Blue = banks with majority share

Independent market share is more concentrated in the Western states, while commercial banks dominate the Midwest states.

Red = independents with majority share; Blue = banks with majority share

For more information, visit our HMDA Market Share Dashboard, updated with the latest 2016 data, or contact Tyler House.