In this piece, we will take a look at the 15 Biggest Mortgage Companies in the US. For more companies, head on over to 5 Biggest Mortgage Companies in the US.
The mortgage financing industry is one of the most important financial sectors in the U.S., and also one of the most controversial. In the aftermath of the devastating 9/11 terrorist attacks, the Federal Reserve lowered interest rates which spurred home buyers to take out large loans to finance their purchases. These loans formed the backbone of the 2008 financial crisis, as the defaults due to higher rates forced large banks out of business as they had sold securities that had used the loans as collateral.
Since then, the sector has been reformed and according to Allied Markets Research, the global mortgage industry was worth $11.48 billion in 2021 and from then until 2031, it will grow at a compounded annual growth rate (CAGR) of 9.5% to sit at an estimated $27.50 billion. A detailed analysis of the market reveals that last year, the longer term 30 year mortgages had held the highest share, accounting for more than half of the total pie. However, moving forward, the relatively shorter 15 year market will witness the fastest growth as it will grow at a CAGR of 13.7%. Similarly, mortgage buyers are quite risk averse, as the fixed rate mortgage accounted for the greatest share last year, but yet again, variable rate mortgages are expected to grow faster now with an estimated growth rate of 12.1%.
Zooming out to take a look at the real estate market, the same research firm outlines that this segment was worth a whopping $7.9 trillion in 2020, and despite this, it will grow by a strong 11.3% CAGR between 2021 to 2030 and sit at $23 trillion by the end of the forecast period. This shows that mortgage financing represented a small chunk of overall real estate loans, which isn’t surprising since mortgages are generally taken out by small homeowners and businesses.
Today’s piece will focus exclusively on the U.S. mortgage market and identify the largest players. Out of these, the top three are Federal National Mortgage Association (OTCMKTS:FNMAN), Federal Home Loan Mortgage Corporation (OTCMKTS:FMCCT), and Rocket Companies, Inc. (NYSE:RKT).
Photo by Breno Assis on Unsplash
Our Methodology
We took a look at the U.S. financial market to identify the firms that are working in the mortgage segment. These were then sorted through their latest market capitalization.
Latest market capitalization: $150.6 million
Security National Financial Corporation (NASDAQ:SNFCA) originates and underwrites mortgages for homes, construction projects, and real estate projects. The firm is headquartered in Salt Lake City, Utah.
Security National Financial Corporation (NASDAQ:SNFCA) is being hammered by the consumer draw down in taking out new mortgages due to ongoing interest rate hikes. The firm’s latest quarter saw it report $2.3 million in net loss, down 121% from the year ago quarter’s $10.7 million in profits. As part of the press release, Security National Financial Corporation (NASDAQ:SNFCA)’s management admitted that it had failed to reduce its costs at the rate at which its revenues dropped.
Security National Financial Corporation (NASDAQ:SNFCA)’s market capitalization currently stands at $150.6 million.
Clint Carlson’s Carlson Capital is Security National Financial Corporation (NASDAQ:SNFCA)’s largest investor through a $1.4 million stake that comes via 223,319 shares.
Federal Home Loan Mortgage Corporation (OTCMKTS:FMCCT), Federal National Mortgage Association (OTCMKTS:FNMAN), and Rocket Companies, Inc. (NYSE:RKT) are met by Security National Financial Corporation (NASDAQ:SNFCA) in our list of the biggest mortgage companies in the USA.
Latest market capitalization: $253 million
Home Point Capital Inc. (NASDAQ:HMPT) sources and services loans. The firm provides its loans through direct and wholesale channels and its servicing segment deals with investors. The company is headquartered in Ann Arbor, Michigan.
Home Point Capital Inc. (NASDAQ:HMPT) is reducing its cost base like some other mortgage providers. During its third quarter, it reduced its expense base by a strong $100 million year over year, in what management described as an industry leading effort. Home Point Capital Inc. (NASDAQ:HMPT) also sold a loan servicing division which ended up bringing it $110 million in liquidity.
Home Point Capital Inc. (NASDAQ:HMPT) market capitalization is $253 million. The firm pays a 4 cent dividend for an 8.74% yield.
Bill Miller’s Miller Value Partners is Home Point Capital Inc. (NASDAQ:HMPT)’s largest investor. It owns one million shares that are worth $3.9 million.
Latest market capitalization: $267.5 million
Ocwen Financial Corporation (NYSE:OCN) provides mortgage loans in the U.S., Virgin Islands, India, and the Philippines. The loans include commercial and reverse mortgage loans. It is headquartered in Palm Beach, Florida.
Ocwen Financial Corporation (NYSE:OCN) reported $37 million in net income for its third fiscal quarter, and at the same time, its book value per share of $69 represented a strong $18 annual increase for 35% growth. The company also reduced its expenses by $14 million during the quarter.
As of Monday, November 14th, 2022, Ocwen Financial Corporation (NYSE:OCN)’s market capitalization is $267.5 million.
Howard Marks’ Oaktree Capital Management is Ocwen Financial Corporation (NYSE:OCN)’s largest shareholder. It owns 756,870 shares that are worth $20 million.
Latest market capitalization: $327 million
Velocity Financial, Inc. (NYSE:VEL) is a Californian company that provides real estate financing. The firm manages investor loans backed by properties and it provides mortgages through its network of independent brokers.
Velocity Financial, Inc. (NYSE:VEL)’s loan portfolio grew by 11% during its third quarter and stood at $3.4 billion. During the same quarter, its net interest margin dropped by 51 basis points due to the larger portfolio. Velocity Financial, Inc. (NYSE:VEL) non performing loan rates dropped to 7.4% from the 8.2% that it had stood in the prior quarter.
Velocity Financial, Inc. (NYSE:VEL)’s market capitalization is at $327 million.
Velocity Financial, Inc. (NYSE:VEL)’s largest investor is Carl Goldsmith and Scott Klein’s Beach Point Capital Management which owns 3.2 million shares that are worth $36 million.
Latest market capitalization: $410.5 million
America First Multifamily Investors, L.P. (NASDAQ:ATAX) primarily engages in the buying, selling, and holding of mortgage revenue bonds. These enable the firm’s clients to finance their residential and commercial properties. It is headquartered in Omaha, Nebraska.
America First Multifamily Investors, L.P. (NASDAQ:ATAX) asset profile as of September 2022 consisted of 48% mortgage revenue bonds, 13% cash, and other assets. The firm’s percentage of mortgage investments to total assets also stood at 76% during the month, to reflect an all time high.
America First Multifamily Investors, L.P. (NASDAQ:ATAX)’s market capitalization sits at $410.5 million.
Latest market capitalization: $498 million
loanDepot, Inc. (NYSE:LDI) primarily engages in selling and servicing residential mortgage loans. It also provides insurance policies and is based in Foothill Ranch, California.
loanDepot, Inc. (NYSE:LDI) is currently focusing on reducing its operating costs and losses. The firm’s third quarter results outlined that it had narrowed down operating losses to $137 million from $224 million, and reduced its cost base by 22% or $126 million.
loanDepot, Inc. (NYSE:LDI)’s market capitalization is $498 million. Its largest shareholder is Jim Simons’ Renaissance Technologies which owns 1.1 million shares that are worth $1.5 million.
Latest market capitalization: $616.8 million
Guild Holdings Company (NYSE:GHLD) sells and services residential mortgage loans. The firm has more than two hundred branches across 49 American states and it is headquartered in San Diego, California.
Guild Holdings Company (NYSE:GHLD)’s fiscal third quarter saw the firm increase both its net income and earnings per share by a whopping 74% to $24 million and $0.40, respectively. Additionally, and more importantly, 91% of the firm’s originated loans were purchased loans, indicating that it grew its market share in a market that has become important due to the recent interest rate increases by the Federal Reserve.
As of Monday, November 14, 2022, Guild Holdings Company (NYSE:GHLD)’s market capitalization was worth $616.8 million.
Latest market capitalization: $1.14 billion
Encore Capital Group, Inc. (NASDAQ:ECPG) is a specialty finance company that deals with loan recovery. Its services also include recovering mortgages, and the company is based in San Diego, California.
Encore Capital Group, Inc. (NASDAQ:ECPG) benefited from the rising interest rates in the U.S. during its third quarter. The firm revealed that in the three months ending in September, its portfolio purchasing stood at levels not seen since 2020 and that globally, the portfolio purchases increased by 38% to stand at $233 million.
Encore Capital Group, Inc. (NASDAQ:ECPG)’s latest market capitalization is $1.14 billion.
Encore Capital Group, Inc. (NASDAQ:ECPG)’s largest investor is Jonathan Sen’s BloombergSen which owns 1.1 million shares that are worth $68 million.
Latest market capitalization: $2.8 billion
Walker & Dunlop, Inc. (NYSE:WD) sells a host of real estate financing services that include mortgages, mezzanines, small balances, and others. The firm is headquartered in Bethesda, Maryland.
Walker & Dunlop, Inc. (NYSE:WD) has an experienced management team at the helm of its affairs, with its chief executive officer being present at the company for 15 years. This provides him with the right skill set to deal with the current market, which is in its worst shape since 2008. Walker & Dunlop, Inc. (NYSE:WD) reported $17 billion in total transaction volume during its third quarter, which showed the strength of its scale.
Walker & Dunlop, Inc. (NYSE:WD) is worth $2.8 billion on the stock market.
Walker & Dunlop, Inc. (NYSE:WD)’s largest shareholder is Martin D. Sass’ MD Sass which owns 327,036 shares that are worth $31 million.
Latest market capitalization: $2.87 billion
PennyMac Financial Services, Inc. (NYSE:PFSI) is a mortgage banking and investment management company. The firm sources guaranteed mortgage loans, provides loan administration and default management and manages production activities for a mortgage investment trust.
PennyMac Financial Services, Inc. (NYSE:PFSI) ended its third fiscal quarter with a net income of $135 million as loan servicing agreements in the currently inflationary environment drove the demand up for its services. The firm’s investment management segment reported $2 billion in assets under management and its book value per share grew 4% annually.
PennyMac Financial Services, Inc. (NYSE:PFSI) pays a 20 cent dividend for a 1.4% yield, and its market capitalization is $3 billion. The firm’s largest investor is Farhad Nanji and Michael Demichele’s MFN Partners which owns 4.5 million shares that are worth $198 million.
PennyMac Financial Services, Inc. (NYSE:PFSI) is one of the biggest American mortgage companies, alongside others such as Federal National Mortgage Association (OTCMKTS:FNMAN), Federal Home Loan Mortgage Corporation (OTCMKTS:FMCCT), and Rocket Companies, Inc. (NYSE:RKT).
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Disclosure: None. 15 Biggest Mortgage Companies in the US is originally published on Insider Monkey.
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