This chart is is a favorite from the MBA repertoire, and it remains a stark reminder that nimble technology and responsive customer service has been a huge advantage for nonbank lenders vs. large depository lenders in the post crisis era.
As the chart shows, nonbank lenders have steadily increased their market share in making home purchase loans to consumers in recent years, and now their market share is at 51% vs. 21% for large depository banks. This is a sharp contrast from 2011 when nonbanks and large depository lenders each had about 36% of the purchase market.
The 2016 figure may seem old here, and it’s because this is based on HMDA data that the government collects on every loan application, and HMDA results for 2017 won’t come out until later this year. Will comment again when this is updated.