Brief Excerpt from Industry Overview Chapter:
Companies in this industry lend money with real estate as collateral. Major companies based in the US include units of Bank of America, JPMorgan Chase, Rocket Mortgage, and Wells Fargo; other major companies include units of Barclays and Nationwide Building Society (both based in the US), BNP Paribas (France), and Deutsche Bank and Postbank (both based in Germany).COMPETITIVE LANDSCAPE
Demand for mortgage services is driven by home sales and the refinancing that occurs when mortgage rates are low. The profitability of individual companies depends on volume, interest rate spreads, and efficient operations. Large companies have big economies of scale in operations. Small companies compete successfully by funneling mortgages to the large companies. The US industry is concentrated: the eight largest companies generate about 40% of revenue.PRODUCTS, OPERATIONS & TECHNOLOGY
Mortgage banks lend money to homeowners with the home as collateral; some specialize in lending to farms or businesses, also with real estate as collateral.
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