The Wall Street Journal's Anya Martin reports on the increasing number of home buyers that are going to non-bank lenders for their loans. 

Independent mortgage companies have seen an increase over the past couple of decades. Most non-bank mortgages are backstopped by government agencies such as Fannie Mae, Freddie Mac, and the Federal Housing Administration. However, the jumbo mortgage market is one place traditional banks can claim an advantage: The jumbo market often exceeds government limits. 

Some nonbank lenders are now selling their jumbo loans to big banks and large institutions, such as Wells Fargo, insurance companies and real estate investment trusts (REITs), Mr. Cecala says. “Banks are realists,” he adds. “They need to buy loans from nonbanks to keep their portfolios growing.”

"Bank lenders also focus on the overall client relationship, and can offer discounts based on the depth of that relationship,” said D. Steve Boland, 
Bank of America consumer-lending executive.

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