MarketWatch staffer Andrea Riquier reports on housing finance trend that's causing quite a stir: Big banks are exiting the residential mortgage lending business in droves.
Riquier notes that as the housing crisis picked up negative momentum in 2007, banks were in for about three-quarters of home mortgages, but by 2014, their share had sunk to half. She writes that while the consensus believes that banks had gone too far and left themselves too exposed to the market, the pendulum has swung too far.
Of the top 10 originators in 2015, banks lent 28.6% of all mortgages, according to data from Inside Mortgage Finance. That’s about half their share in 2012, when banks among the top 10 originators accounted for 54.4% of all mortgages.