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On March 31 2026, the CFPB released its preliminary HMDA report for 2025[1]. The Home Mortgage Disclosure Act release is a comprehensive annual report covering loan-level mortgage originations and applications at the census tract level from over 4,700 lenders. The report contains essential data on borrower demographics, income, loan size, and rate, among many other fields. This note presents a quick summary of three topics: market size, lender type, and market concentration. Ⅰ. Market size  The number of loans originated in 2026 rose by 619k to 6,58 million. This was the highest figure since 2022, but the 4th-lowest number since 2000. The preponderance of the increase last year was due to a 512,000 increase in the origination of refinance loans, a 36% jump from 2024. Home improvement originations rose by about 22,000 (3.7%) while those for purchase loans edged up by 63,000 (1.9%). Elevated home prices and interest rates continue to be headwinds for new issuance. Ⅱ. Lender Type  The nonbank share of originations rose 1.6% to a record high of 72%. This is up by about 10% from 2019, just before the COVID-19 pandemic, and is almost double the 35.9% figure reported in 2011. Virtually all of the increase in loan production in the last two years has come from nonbanks. There were 1.1 million more loans originated in 2025 compared to 2023, of which only 0.7% came from banks. Ⅲ. Market concentration  In 2025, the two nonbanks, Rocket Mortgage and United Wholesale Mortgage, continued to dominate the origination market, with each holding shares above 6.0%. No other lender achieved a 2% share last year. The market became more concentrated, with the top 10 lender share rising to 23.9% in 2025 from 22.7% the prior year. Only two banks, JP Morgan and Bank of America, made the top 10 list in 2025, as US Bank, which was the number 9 lender the prior year, dropped out of the list in 2025. All this is just scratching the surface of all the information available in the HMDA release. A final version containing updates and more information will come out in the summer of 2026. |
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