The president of the Government National Mortgage Association, Ted Tozer, has been trying in vain to get more mortgage companies to issue mortgage-backed securities, but Wells Fargo & Co. continues to increase its grip on the government market.
According to Ginnie Mae figures, Wells issued $28.4 billion of Ginnie Mae MBS in the fourth quarter of 2011, giving it a stunning market share of 43%. A year earlier its share was 32%. Overall, mortgage bankers issued $64.6 billion of Ginnie Mae MBS in the fourth quarter.
As reported Monday by National Mortgage News, Wells is already looking at a fourth-quarter overall residential production share approaching 30%. It remains a dominant player in the correspondent channel where it buys already funded loans from small to midsize nonbank funders — especially Federal Housing Administration and Department of Veterans Affairs loans. Wells recently stopped disclosing its FHA/VA production but it likely has market share in that sector of nearly 40%.
