Let's talk!

Blogs » Aliens & UFO » Nonbank Lenders Account For 68% Of Mortgage Originations

Nonbank Lenders Account For 68% Of Mortgage Originations

  • Nonbank lenders now make almost 70% of all mortgages in America. How has the market changed so much? What does it indicate may come next? 

    The New Mortgage Lending Landscape

    According to data from Inside Mortgage Finance, 68% of new mortgages are being made by nonbank entities. In fact, 7 out of 10 of the largest mortgage lenders in America are not banks, including the largest. 

    That may be even more significant given that we’ve been hitting new mortgage origination records. With around $4T in new home loans made in 2020 and 2021.

    Why The Shift?

    Regulatory changes and slick positioning by entrepreneurs have certainly helped. Traditional banks have continued to refuse to change. Not only in terms of convenience and meeting new trends and technology, but perhaps even more importantly in terms of how they treat their customers. 

    They don’t seem to have won any more points in terms of trust since the last crisis. Some of their moves at the beginning of COVID only cost them more of it. 

    The Wall Street Journal reports that access to loans and underwriting by traditional banks has only tightened, hitting their most restrictive in 2021, since 2014. 

    With investors making up 16% of the home purchase market and growing, these borrowers especially need alternatives. 

    What’s Next?

    Between supersized funding rounds of startup finance companies, and extravagant IPOs of fintechs, some are certainly questioning the sustainability of this trajectory.

    While change is needed in customer service and convenience, those who have been around long enough may remember similar statistics in the run up to 2008, when mortgage brokers were responsible for around 60% of mortgage originations. 

    This doesn’t mean a financial or housing crash is imminent, but it could be a leading indicator of a major pending consolidation in the originations space. Especially given that Freddie Mac has forecast an almost 50% decline in new mortgage loans being made in 2022. 


    Nonbanks now originate more mortgage loans than banks. There’s no telling how long this will last this cycle. It does say a lot about the market and consumer trends though. Perhaps even more importantly for real estate  investors is that it means there are more financing options for them. And that for mortgage note investors, it is wise to be looking at how this may change where the best notes are to buy. 

    Investment Opportunities

    Find out more about investing in secured debt and real estate, go to NNG Capital Fund

Recent Blog Entries

  • A Server Virtualization Engineer partitions a physical server by using software into several smaller virtual servers to boost server resources. Besides, this individual also helps to ensure that space is saved, allowing many resources to use the same space. By doing so, they improve network performa...
  • October 29, 2018
    Posted by Deylr eylrod
  • We welcome the many gamers at our website; players can discover us to get cash of clans’ limitless gems and hacks. The coc hack tool is a strategy application for mobile device at present! We construct our coc hack tool for both android and iOS gadget, it is established by specialize industr...
  • One on the great "you was able to make it moments" to be described as a rookie must be in the event you notice your name employing a Madden video games. Would you play you because you in Madden? Would that certainly be considered a sign of narcissism reely more than the moment being proud of merely ...
  • The gaming companies are enduring a summer swoon, as being the industry-tracking NPD Group today announced its June retail sales figures, showing shrinking revenues year-over-year overall.Even with grim news with the industry overall, there was clearly some individual winners. Take-Two Interactive f...
View All