zeppelin5555 t1_iybdw70 wrote on November 30, 2022 at 3:22 AM

Reply to comment by BlueFalconPunch in Mortgage Lender Recommendations by Sivla-Alegna

Not sure who the big 3 are. The largest services for today's loans are Rocket, UWM, and Pennymac and Pennymac is the only one that buys loans from others. I could go on, but some local companies service loans, most do not. You have to be approved and setup to retain the servicing on the loan. Most lenders have no intention of servicing the loan, and it is setup to be transferred well before a few months, and even sometimes they transfer the loan to a company that doesn't intend to service the loan long term.

PoopsExcellence t1_iybeqtv wrote on November 30, 2022 at 3:29 AM

I think two of them have to be Wells Fargo and Fannie Mae

zeppelin5555 t1_iybh4sy wrote on November 30, 2022 at 3:49 AM

FNMA isn't a servicer, they are the 'guarantor' of MBS. Basically they take about 0.5% interest of every loan in the country in exchange for guaranteeing the end investor will be made whole up to 80% loan to value. They are the most profitable entity in the country, and basically enable a stealth tax. There is value in what they provide but they produce profits that are just crazy. Wells Fargo is still probably about the tops, but they service loans for FNMA, and aren't producing like they used to. Given their book though, they still service probably as many or more loans than anyone. Wells has been reducing its market share as of late, and has the asset cap I think. Not a big deal. Still huge.