Wells Fargo, Bank of America and JPM Chase originating 50% of all mortgages in the U.S.

[Slimprofits]

http://online.wsj.com/article/SB125322329116020929.html

The three originated 52% of mortgages in the first half, according to Inside Mortgage Finance, just over double these banks' market share in 2005. In servicing, their share is 49%, compared with 22% in 2005.

Treasury-backed entities are guaranteeing about 85% of new mortgages, while the Fed buys 80% of the securities into which these taxpayer-backed mortgages are packaged.

drumroll please....a great paragraph is up ahead:

Will the big three benefit? Large market share in mortgages could act as a drag if the housing market languishes after government support recedes. That could come sooner than some think; the Fed's special $1.25 trillion program to buy Fannie and Freddie securities is two-thirds complete and is scheduled to close at year-end. But getting a strong grip on mortgage-fee income, and avoiding credit and interest-rate risk by selling loans to the government, could turn out to be a money-making strategy, even if mortgage origination drops off.

Gee, ya think?

[pwcmba]

Re: Wells Fargo, Bank of America and JPM Chase originating 50% of all mortgages in the U.S.

Ah - The new BIG 3! Clearly too big to fail; meaning we should see 125% financing and liar loans making a BIG come back soon.

[Rajiv]

Re: Wells Fargo, Bank of America and JPM Chase originating 50% of all mortgages in the U.S.

Are they continuing to continuing to repackage and securitize these mortgages, or have they stopped the practice?

See Landmark Decision: Massive Relief for Homeowners and Trouble for the Banks

[GRG55]

Re: Wells Fargo, Bank of America and JPM Chase originating 50% of all mortgages in the U.S.

Are they continuing to continuing to repackage and securitize these mortgages, or have they stopped the practice?

See Landmark Decision: Massive Relief for Homeowners and Trouble for the Banks

Aren't these mostly being peddled off to Fannie and Freddie?

[metalman]

Re: Wells Fargo, Bank of America and JPM Chase originating 50% of all mortgages in the U.S.

Aren't these mostly being peddled off to Fannie and Freddie?

jumbo rates are great if you have a perfect credit score and 20% - 40% down.

love the comment on that...

The typical three-year rate on your Grandma's certificate of deposit is now quoted at 2.0 to 2.5 percent, or somewhere in the one's for shorter terms----courtesy of the Fed artificially reducing it's target Fed Funds rate to zero,----and we're celebrating banks lending the money on jumbo home loans in the six's.
WHO do you suppose is now subsidizing the market for those big houses? Everybody who needs the safety of an FDIC-insured investment, like say, the elderly?
Grandma puts up the money for more-or-less nothing. The bank gets a four-or-five point spread and the FDIC insures the risk THAT IS STILL HIGH ENOUGH THAT THERE ARE NO PRIVATE BUYERS FOR THESE LOANS IN THE SECONDARY MARKET.
There is no sensible reason that jumbos are not still in sevens or eights or however high would be sufficient to actually attract secondary buyers.

[wayiwalk]

Re: Wells Fargo, Bank of America and JPM Chase originating 50% of all mortgages in the U.S.

Aren't these mostly being peddled off to Fannie and Freddie?

My Well Fargo mortgage closed around mid June was immediately sent to Fan or Fred....can't recall which.