Big Lenders Losing Market Share and Loan Officers to Smaller Mortgage Bankers

The US Finance Post recently reported, Wells Fargo and JP Morgan Chase, the two largest mortgage lenders in the U.S., are feeling the sting from smaller firms

While large banks still dominate the mortgage market, their dominance is waning with smaller lenders, some of them very new, grabbing market share.

The reason? (1) Smaller lenders are better at marketing; (2) their “ability to be more nimble and opportunistic in the marketplace; (3) are often lean, thus able to provide more aggressive pricing to increase market share; and (4) have also captured more business as new financial regulations force large banks to pledge more capital for the servicing rights they hold.

Many small to mid-sized lenders allow their originators to market via their social media sites and other on-line mediums. By doing this, the originators can This seems to be putting a bit of a sting on the bigger institutions.

With bigger banks “the brand” is the primary focus, and for good reason, they have share holders to worry about. But the small to mid-sized companies are in a position to let their salespeople form a more personal relationship with past and prospective clients. By doing so, it would appear that the person attached to the brand is more effective when it comes to getting new business.