In this article, we will take a look at the 5 biggest mortgage companies in the US. You can read our detailed analysis of these companies, and go directly to the 10 Biggest Mortgage Companies in the US in the World.
5.PennyMac Financial Services, Inc. (NYSE: PFSI)
Market Cap: $4.1 billion
PennyMac Financial Services is 5th on our list of the biggest mortgage companies in the US. PennyMac Financial Services, Inc. is an American residential mortgage lender, located in Westlake Village. The company runs in three business sectors: Loan Servicing, Loan Production, and Investment Management.
According to Inside Mortgage Finance, PennyMac Financial Services, Inc is the second-largest originator and the sixth-largest servicer in America as of March 31, 2021.
On revenue of $742.3 million, the company recorded a net income of $204.2 million, or $2.94 per share on a diluted basis, according to the second quarterly report 2021.
4. Discover Financial Services (NYSE: DFS)
Market Cap: $37.6 billion
Discover Financial Services is 4th on our list of the biggest mortgage companies in the US. Discover Financial Services is a holding company that provides digital banking and payment services. The company is a financial holding company as well as a bank holding company. Digital Banking and Payment Services are the two sectors through which it works. Discover Financial Services (DFS), through its businesses, provides digital banking products and services and payment services.
For Q2 2021, the company recorded a net income of $1.7 billion, or $5.55 per diluted share, compared to a net loss of ($368) million, or ($1.20) per diluted share, in Q2 2020.
3.Wells Fargo & Company (NYSE: WFC)
Market Cap: $200.5 billion
Wells Fargo & Company (WFC) is a notable giant in the US industry. It is 3rd on our list of the 5 biggest mortgage companies. Located in San Francisco, it provides investment banking and mortgage services via 8,050 locations, 13000 ATMs, and has offices in 38 countries to back up buyers doing business in the world market. The total assets of Wells Fargo are worth $1.9 trillion.
According to Q2 2021 report, there was a net income of $60 billion. Average loans decreased by 10% and deposits increased by 17%. The company generated total revenue of $20,270.
Main mortgage offerings at Wells Fargo & Company are available at 15, 20, 30-year fixed-rate loans. However, for homes and mortgages, the company opts for a down payment of 25% which is higher than the usual 20% most lenders practice.
According to a recent report, the company is providing services to almost 33.33% of the households in America.
In the Q2 2021 investor letter of Argosy Investors, the fund mentioned Wells Fargo & Company (NYSE: WFC). Here is what the fund said:
“Wells Fargo & Company (NYSE: WFC) (+91% from October purchase to sale) were never intended to be core positions. I expected WFC could hit $60 in a number of years, but it got to the high $40’s in less than a year. It seemed like a good time to trim.”
2. Bank of America Corporation (NYSE: BAC)
Market Cap: $342.9 billion
Bank of America Corporation is 2nd on our list of the biggest mortgage companies in the US. The main financial services provided by Bank of America include investment banking, commercial banking, and wealth management. Wealth management service regulates $1.081 trillion. Bank of America has 38 branches but operates in all 50 states of the United States as well as in 40 other countries providing mortgage loans.
It provides commercial banking services through 46,000 banking centers and 15,900 ATMs to 46 million people and small business enterprises. It offers a variety of mortgage loans in the form of FHA, VA, refinance, conventional, jumbo, and home equity loans.
In the second quarter of 2021, the bank’s revenue was $21.5billion, a 4% decline year-over-year and a net income of $9.2 billion.
1. JPMorgan Chase & Co. (NYSE: JPM)
Market Cap: $469.5 billion
JPMorgan Chase & Co. is 1st on our list of the 5 biggest mortgage companies. The bank’s assets are worth $3.386 trillion. The financial firm offers retail banking, commercial retail, and card services for ordinary clients. This firm offers a wide diversity in providing mortgage projects for both home purchases and mortgage refinancing.
The company generated a revenue of $30.5 billion according to Q2 2021. Average deposits increased by 23% in firm-wide metrics. The net charge offs for the company reduced by 53% which is a direct reflection of healthy client and customer relationship.
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