Market share in the mortgage industry
The five largest US banks (XLF) continue to lose market share in the US mortgage industry. The top banks—Wells Fargo (WFC), JPMorgan Chase (JPM), Bank of America (BAC), US Bancorp (USB), and Citigroup (C)—originated residential mortgages worth $3,277 billion in the first quarter compared to $3,303 billion in the fourth quarter of 2017. The first quarter was one of the worst quarters for these banks in the last 20 years. US Bancorp was the only bank that reported mortgage servicing growth.
US consumer credit growth in April
According to the Federal Reserve, consumer credit slowed to an annual growth rate of 2.9% or $9.3 billion in April—compared to 3.8% in March. The consumer credit was lower than economists’ expectations of a gain of $14 billion. In April, credit growth slowed down for the third consecutive month. Consumer credit growth is closely monitored by market participants. Consumer credit growth accounts for 70% of US economic activity.
Bank of America’s hiring spree
Bank of America plans to hire 10,000 employees from low to middle-income communities for positions in its consumer and small business division in the next five years.