Smaller lenders grab market share in mortgages

Bank of America today joined Wells Fargo and JPMorgan in reporting big drops in mortgage business, but it's not all coming from the general slowdown in refinancing. Both Wells and JPMorgan reported Q4 declines larger than that seen by the Mortgage Bankers Association, suggesting a loss in market share.

"Some of the smaller lenders are offering better pricing," says Compass Point's Kevin Barker, noting PennyMac Mortgage Investment (PMT +1.3%), Ocwen Financial (OCN -0.7%), and Nationstar Mortgage (NSM -2.1%) have all increased their business over the year (though Nationstar, at least, hasn't been immune to the overall slowdown, and Ocwen benefits more on the servicing side). Barker figures Wells and JPM lost about 4% in market share in Q4.

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Comments (5)
  • Tucker Leppa
    , contributor
    Comments (339) | Send Message
    Long (PMT) here, still my favorite mREIT.
    15 Jan 2014, 03:07 PM Reply Like
  • toadbright
    , contributor
    Comment (1) | Send Message
    PMT is actually the PennyMac Real Estate Investment Trust. PennyMac Financial Services, Inc. (PFSI) is the mortgage originator.
    15 Jan 2014, 05:53 PM Reply Like
  • Tucker Leppa
    , contributor
    Comments (339) | Send Message
    PennyMac Mortgage Investment Trust (PMT) is what this article and I are both talking about. They are a mREIT, I don't know where you are pulling PFSI from. Why are you bringing up (PFSI)?
    15 Jan 2014, 07:11 PM Reply Like
  • EGalindo
    , contributor
    Comments (106) | Send Message
 "Ocwen Financial Corp., the biggest non-bank in the mortgage-servicing industry, will provide $2.1 billion in relief for homeowners to settle regulators' claims over abuses in its handling of borrowers' loans."

  "The plaintiff contends that following his discharge PennyMac committed numerous wrongful acts, including impermissibly accessing the plaintiff’s credit report for collection purposes, sending statements and collection letters, calling the plaintiff regarding the surrendered property and causing PennyMac agents to visit the plaintiff’s residence in Texas, the suit states."
    15 Jan 2014, 09:00 PM Reply Like
  • Tucker Leppa
    , contributor
    Comments (339) | Send Message
    PMT is externally managed by PNMAC Capital Management, LLC who is a subsidiary of the PennyMac mentioned in that article. None of those lawsuits will affect PMT in any way.
    16 Jan 2014, 06:15 PM Reply Like
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