Real Estate Loans & Collateralized Debt in the US - Industry Market Research Report

Lending a hand: Projected increases in homeownership will boost industry revenue

The Real Estate Loans and Collateralized Debt industry is composed of nondepository institutions that conduct primary and secondary market lending. Operators in this industry include government agencies in addition to non-agency issuers of mortgage-related securities. Through 2023, rising per capita disposable income and low levels of unemployment helped fuel the increase in primary and secondary market sales of collateralized debt. Nonetheless, due to the outbreak of COVID-19 and the sharp contraction in economic activity due to lockdowns, revenue contracted in 2020, but has since rebounded as the economy has normalized and interest rates have shot up. These trends caused revenue to grow at a CAGR of 2.2% to an estimated $524.8 billion through 2023, with an anticipated spike of 10.5% in 2023. Profit, measured as revenue-less interest and noninterest income, is expected to account for 11.5% of revenue in 2023.

The industry comprises nondepository operators that specialize in primary and secondary market lending. Unlike banks and other traditional lenders, industry participants do not rely on deposits to issue loans. Instead, to finance primary market lending to consumers and business, industry operators generate income by securitizing and selling mortgages and other loans on the secondary market. The industry also includes miscellaneous forms of collateralized lending, such as pawn lending.

This report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecasts, growth rates and an analysis of the industry key players and their market shares.