Magazine article American Banker

Norwest Widens Lead in Agency Securitization

Magazine article American Banker

Norwest Widens Lead in Agency Securitization

Article excerpt

Norwest Mortgage Inc. solidified its No. 1 status in the securitization derby by selling $11.3 billion of loans to government-sponsored enterprises in the first quarter.

The new Chase Manhattan Mortgage Corp. jumped to No. 3 by virtue of its parent's merger with Chemical Banking Corp. And Prudential Home Mortgage fell out of the uppermost ranks as it slimmed operations in anticipation of a sale of its originations business.

The first-quarter ranking, compiled by Mortgage Marketplace, a sister publication of American Banker, looked at loan securitizations through the Federal National Mortgage Association, Federal Home Loan Mortgage Corp., and Government National Mortgage Association. The housing finance agencies purchase loans from originators and repackage and sell them as securities through Wall Street.

The ranking does not consider nonconforming loans, such as jumbo and subprime mortgages, that lenders securitize through private conduits like Residential Funding Corp. and GE Capital Mortgage Services.

But the first-quarter compilation serves as a barometer of borrower traffic, since the large lenders securitize most of their loans through the housing-finance agencies.

The figures demonstrated the strong concentration in the industry, with the top five lenders accounting for about a third of all agency securitizations and the top 15 just over half.

Virtually every lender handled more securitizations in the first quarter than in the fourth quarter of 1995. Norwest, for instance, saw volume grow by $2 billion since the fourth quarter, when the lender did $9 billion of business with the government-affiliated agencies. …

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