Nonbank mortgage servicers cement dominance in agency market

Overall, unpaid principal balance (UPB) remains relatively flat year over year across all loan types. As of July 20025, UPB stood at $8.964 trillion compared to $8.951 trillion at the same time last year.

When comparing numbers for banks and nonbanks, the latter group continues to dominate agency servicing and originations — especially for loans pooled through Ginnie Mae. Across all agency servicing, the nonbank share of UPB as July was 72%, while banks held 28%. When looking only at Ginnie Mae pools, the nonbank share rose to nearly 89%.

As for new issuances during the first half the year, among the country’s top 25 servicers, nonbanks were responsible for $481 billion whereas banks posted $74 billion. Nonbanks had $235 billion in prepayments versus $65 billion for…