Research and Markets: Mortgage Banking in the US: Industry Includes about 16,000 Companies, Such as Fargo, JPMorgan Chase

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DUBLIN--(BUSINESS WIRE)-- Research and Markets (http://www.researchandmarkets.com/research/18195b/mortgage_banking) has announced the addition of the "Mortgage Banking" report to their offering.

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Executive Summary

Brief Excerpt from Industry Overview Chapter:

The US mortgage banking industry includes about 16,000 companies with combined annual revenue of $60 billion. Major companies include units of Wells Fargo, JPMorgan Chase, Citigroup, and Bank of America. The industry is concentrated: the largest 50 companies generate about 70 percent of revenue.

COMPETITIVE LANDSCAPE

Demand for mortgage services is driven by home sales and the refinancing that occurs when mortgage rates are low. The profitability of individual companies depends on volume, interest rate spreads, and efficient operations. Large companies have big economies of scale in operations. Small companies compete successfully by funneling mortgages to the large companies. The industry is capital-intensive: annual revenue per employee is about $300,000.

The global financial crisis of 2008-2009 redrew the mortgage banking landscape. Several prominent mortgage lenders became insolvent and were acquired after subprime mortgages failed. A handful of brand-name banks emerged as industry leaders. JPMorgan Chase took over Washington Mutual after its mortgage unit's losses led to the largest bank failure in history. Bank of America bought Countrywide Financial, once the nation's largest mortgage lender. IndyMac, California's largest mortgage lender, went bankrupt and some of its assets were bought by private equity firms.

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