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Data to Grow On

Data to Grow On

The Mortgage Industry Report for 2016 was recently posted on the NMLS Resource Center with some good news. This report is published annually and compiles the data concerning those people and entities in the NMLS who conduct mortgage activities. This information is made available for your review, so visit the link below for specifics.

Growth has returned:

2016 saw the return of new state licensed mortgage companies with 2.2 percent growth. This is positive, since 2014 and 2015 both saw the reduction in licensed entities. The industry experienced a reduction in the number of mortgage companies due to regulatory impact and compliance costs. Companies joined forces or were acquired to better position for the future. This was validated by the growth in entity licenses in 2014 and 2015 despite lower company numbers. For 2016, there were 16,355 mortgage entities doing business from 22,937 branch locations but holding 56,001 active licenses. That is a slight increase in company numbers since 2014; but there are 1755 more branch locations now and 12,620 more state licenses than 2014. The number of branch licenses grew each of the last three years by double digits.

Companies that have more branches and more licenses originate more loans. In 2014, companies that operated in only one state accounted for 18 percent of the loans. In 2016, that segment fell to only 15 percent of the total loans. In contrast, companies who are licensed in more than 20 states grew from 49 percent in 2014 to 56 percent of the total loans in 2016. While there were 258 companies that operated in 21 or more states back in 2013, today there are 322. Larger mortgage companies account for seven percent more loan volume.

The number of licensed mortgage loan originators (MLOs) grew by 7.6 percent after smaller growth the previous two years. But the number of MLO licenses they held grew almost 20 percent. The expansion of the Uniform State Test has contributed to this license growth in each state since adoption. The average number of state licenses is now up to 3.4 per MLO, up from 2.54 back in 2013.

Depositories drop:

Attrition and acquisition also impacted banks and credit unions. For the first time, there are fewer than 10,000 nationally registered institutions on NMLS.  Last year saw about a four percent loss in depository institutions and a 7.5 percent overall loss since 2014. Similar trending for MLOs on the licensed origination side, as 2016 saw about four percent growth in federally registered MLOs.

State and national data:

The volume of MCR licensed mortgage originations exceeded $1 trillion for the first time—a 20 percent growth in the year.  Loan detail by volume, loan purpose, originators by state, and much more are available on the NMLS Reports page: http://mortgage.nationwidelicensingsystem.org/about/Pages/Reports.aspx

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