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Largest US Banks Lost Mortgage Market Share

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Sharp decline in mortgage originations

In 2Q17, the five largest US banks originated residential mortgages worth $112.0 billion, which was higher than the first quarter’s figure of $96.0 billion but was well below $129.0 billion reported in 2Q16. The market share of these banks fell from 30.0% in 4Q16 to 24.0% in 2Q17, indicating a sizable reduction in fresh mortgage applications.

A series of interest rate hikes by the Fed caused mortgage originations to fall from $561.0 billion in 3Q16 to $361.0 billion in 1Q17. However, a sharp increase in fresh mortgages led to an improvement in the figure to $463.0 billion in 2Q17.

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