Lenders among the top 100 that specialize in B&C mortgages increased their originations by about 7.7% in the first half, turning in a fairly weak showing against the entire mortgage industry, which had an increase of about 15.5%.
With interest rates low and refinancings high, home equity loans the bread and butter for many B&C lenders were less popular, probably accounting for some of the sluggishness in the subprime market. Similarly, the finance companies among the top 100 increased originations by just 10.9%.
By contrast, the gains for commercial banks and thrifts were relatively robust, 18.3% and 19.23% respectively.
As a result, the B&C segment of the top 100 lost market share to the conventional lenders, accounting for 4.3% of all originations, down from 4.7%.
Commercial banks were way out in front, with a share of about 44%, up about half a percentage point.