Deconsolidation in the Primary Mortgage Market: A Temporary or Structural Trend?

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Housing Insights

Deconsolidation in the Primary Mortgage Market: A Temporary or Structural Trend?

For many years, concentration in the U.S. primary mortgage market – as measured by top originators’ share of mortgage originations – grew at a largely uninterrupted pace. In the wake of the crisis, however, the level of concentration in the primary market has declined more than 20 percent. One reason for this decline was the withdrawal of large lenders, with only 5 of the top 20 single-family mortgage originators in 2006 remaining active in the market today.

In the most recent edition of Housing Insights, Fannie Mae's Economic and Strategic Research Group investigates whether or not the recent decline in top lender share of market origination is more likely a function of cyclical or structural market factors.

Deconsolidation in the Primary Mortgage Market: A Temporary or Structural Trend? (PDF)