Large Banks Gain Mortgage Share in Q2 2026

Large banks experienced a collective 20.8% quarter-over-quarter increase in mortgage volume during the second quarter of 2026, reaching $56.1 billion compared to $46.4 billion in the first quarter. This growth significantly surpassed industry projections, including a 3% gain anticipated by the Mortgage Bankers Association and a 9% increase forecast by Fannie Mae. Analysts at Keefe, Bruyette & Woods (KBW) interpret this trend as an indication that banks may be regaining market share from nonbank originators. The year-over-year growth for the group was 20.1% in Q2 2026.

Several major banking institutions reported substantial increases in their mortgage volumes. Wells Fargo led the group with a 42.9% quarterly percentage increase, followed by Truist at 32.8% and Fifth Third at 31.6%. U.S. Bank was the sole exception, reporting a 7.6% decrease in sequential growth. The KBW report, released this week, suggests that this shift in market dynamics could be influenced by proposed changes to bank capital rules for mortgage loans and servicing, though analysts note it is too early to confirm this correlation.

Data on securitization further supports the trend of increased bank activity. Total agency securitization volumes, which include issuances from Fannie Mae, Freddie Mac, and Ginnie Mae, rose by 11% quarter-over-quarter in Q2 2026. Ginnie Mae issuance alone saw a 20% increase from the first quarter, totaling $159 billion, while GSE issuance grew 6% to $214 billion. JPMorgan Chase, identified as the largest bank securitizer in the analyzed data, reported a 29% quarter-over-quarter gain in its production volume.

In contrast to the robust growth seen by banks, nonbank originators exhibited more mixed results. Rocket Companies reported a 15% quarter-over-quarter increase in combined Ginnie Mae and GSE issuance, and Rithm's issuance grew by 17%, both figures exceeding the overall market growth. However, the summary indicates that other nonbanks experienced less favorable outcomes, suggesting a diverging performance landscape within the nonbank sector.