Firms Boost Originations, Shrink Servicing in Q2

The second quarter of 2014 saw a sizable jump in mortgage origination volumes, while servicing portfolios shrank at many of the biggest firms, according to a market report.

Based on data collected from April through June, Mortgage Daily reported a 24 percent quarterly increase in mortgage originations to an estimated $296 billion among all lenders as of June 30.

Production still fell short 51 percent on an annual basis as consumer demand for mortgages remained anemic and credit standards stayed tight.

Mortgage Daily’s report comes a week after the latest market analysis from investment bank Keefe, Bruyette & Woods, which observed a 22 percent second-quarter improvement in originations among the lenders it tracks.

Wells Fargo kept its top spot as the most active lender for the quarter, posting $47 billion in new loans. JPMorgan Chase followed in the second rank with a reported $18 billion.

Underneath those spots, Bank of America ($14 billion) took third place, knocking Quicken Loans ($13 billion) down to fourth, followed by U.S. Bank ($12 billion).

Together, the 10 biggest second-quarter lenders turned in 46 percent of industry originations.

While most lenders also reported stronger application pipelines moving into Q3, statistics tracked by LoanSifter/Optimal Blue and Mortgage Daily indicate a 3 percent decline in loan volumes for July, August, and September.

In the servicing arena, Wells Fargo also reigned, boasting a nearly $1.8 trillion portfolio.

Following Wells were Chase ($953 billion), BofA ($760 billion), Ocwen ($381 billion), and Nationstar ($379 billion).

With the exception of No. 10—Quicken—none of the top 10 servicers actually grew their portfolios last quarter.