Non Bank Mortgage Lenders Continued to Pick Up Market Share

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The mortgage industry has seen a significant shift in recent years, with non-bank lenders gaining more market share. According to recent data, non-bank lenders originated 52% of all mortgages in the United States in 2020, up from 45% in 2019. This trend is expected to continue in the coming years as non-bank lenders continue to offer competitive rates and flexible lending options.

The Rise of Non-Bank Lenders

The rise of non-bank lenders can be attributed to several factors. First, these lenders are not subject to the same regulations as traditional banks, allowing them to be more nimble in responding to market conditions. This flexibility has allowed non-bank lenders to offer more innovative products and services that cater to a wider range of borrowers.

Another factor contributing to the growth of non-bank lenders is the changing demographics of homebuyers. Millennials, who are now the largest group of homebuyers, are more likely to use non-bank lenders than their parents’ generation. This is partly due to the fact that non-bank lenders tend to offer more user-friendly online platforms, which are important to younger borrowers who are used to conducting most of their financial transactions online.

The Benefits of Non-Bank Lenders

There are several benefits to using a non-bank lender for your mortgage. First, non-bank lenders tend to offer more competitive rates than traditional banks. This is because they do not have the same overhead costs that banks do, such as maintaining physical branches and paying for large staffs.

Non-bank lenders also tend to be more flexible in their lending criteria. They are often willing to work with borrowers who have less-than-perfect credit or who are self-employed, whereas traditional banks may be more stringent in their lending requirements.

Finally, non-bank lenders often offer faster turnaround times than traditional banks. This is because they are not subject to the same regulatory requirements as banks, which can slow down the lending process. This can be especially important in a competitive housing market, where buyers need to move quickly to secure a property.

The Future of Non-Bank Lending

The future looks bright for non-bank lenders. As more and more borrowers become aware of the benefits of using a non-bank lender, the demand for these services is likely to continue to grow. This will put pressure on traditional banks to adapt and compete with non-bank lenders, which could lead to more innovation and better products for consumers.

However, there are also some potential risks associated with non-bank lending. Non-bank lenders are not subject to the same regulatory oversight as traditional banks, which could lead to some unscrupulous lenders taking advantage of borrowers. It is important for borrowers to do their due diligence when choosing a non-bank lender and to make sure they are working with a reputable company.


Non-bank lenders are continuing to pick up market share in the mortgage industry, and for good reason. These lenders offer competitive rates, flexible lending options, and faster turnaround times than traditional banks. However, there are also potential risks associated with non-bank lending, so it is important for borrowers to do their research and choose a reputable lender. As the industry continues to evolve, it will be interesting to see how traditional banks respond to the growing competition from non-bank lenders.