A mortgage loan, often known as a mortgage, is a loan utilized by either real estate buyers or current property owners to acquire money for any purpose while enforcing a lien on the real estate being mortgaged. In addition, a mortgage is a loan provided by a bank or other financial organization to aid in the purchase of a house. The actual house is the mortgage's collateral. In other words, if the borrower stops paying the lender on a regular basis and defaults on the loan, the lender can sell the house to recuperate its losses.
To speed up and simplify the front-to-back-end mortgage application process for customers, the mortgage sector has been steadily implementing technology. In addition, the availability of mortgage services on smartphones applications for underwriting processes is boosting the growth of the market. However, higher interest rates on mortgages loans and higher fees for mortgage broker are some of the factors that hamper the market growth. On the contrary, adoption of APIs and open banking in mortgage lending industry is expected to boost the market growth in upcoming years. Moreover, increasing implementation of artificial intelligence (AI) and machine learning (ML) for automation of underwriting and application processes is anticipated to create lucrative opportunities for the market to grow in future.
The mortgage lending market is segmented into type of mortgage loan, mortgage loan terms, interest rate, provider, and region. By type of mortgage loan, the market is differentiated into conventional mortgage loans, jumbo loans, government-insured mortgage loans and others. Depending on mortgage loan term it is fragmented into 30-year mortgage, 20-year mortgage, 15-year mortgage and others. The interest rate segment is divided into fixed-rate mortgage loan, adjustable-rate mortgage loan. The provider segment is segregated into primary mortgage lender and secondary mortgage lender. The primary mortgage lender is further segmented into banks, credit unions, NBFC’s and others. The NBFC’s is further segregated in online and offline. Region wise, the market is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
The mortgage lending market analysis includes top companies operating in the market such as Ally Financial Inc., Bank of America Corporation, BNP Paribas Fortis, Citigroup, Inc., Fannie Mae, JPMorgan Chase & Co, Mr. Cooper Group Inc., PT Bank Central Asia Tbk, QNB, Royal Bank of Canada, Rocket Mortgage, LLC, Social Finance, Inc., Standard Chartered, Truist, Wells Fargo, ClearCapital.com, Inc. and Roostify, Inc. These players have adopted various strategies to increase their market penetration and strengthen their position in the accounting and budgeting software industry.
To speed up and simplify the front-to-back-end mortgage application process for customers, the mortgage sector has been steadily implementing technology. In addition, the availability of mortgage services on smartphones applications for underwriting processes is boosting the growth of the market. However, higher interest rates on mortgages loans and higher fees for mortgage broker are some of the factors that hamper the market growth. On the contrary, adoption of APIs and open banking in mortgage lending industry is expected to boost the market growth in upcoming years. Moreover, increasing implementation of artificial intelligence (AI) and machine learning (ML) for automation of underwriting and application processes is anticipated to create lucrative opportunities for the market to grow in future.
The mortgage lending market is segmented into type of mortgage loan, mortgage loan terms, interest rate, provider, and region. By type of mortgage loan, the market is differentiated into conventional mortgage loans, jumbo loans, government-insured mortgage loans and others. Depending on mortgage loan term it is fragmented into 30-year mortgage, 20-year mortgage, 15-year mortgage and others. The interest rate segment is divided into fixed-rate mortgage loan, adjustable-rate mortgage loan. The provider segment is segregated into primary mortgage lender and secondary mortgage lender. The primary mortgage lender is further segmented into banks, credit unions, NBFC’s and others. The NBFC’s is further segregated in online and offline. Region wise, the market is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
The mortgage lending market analysis includes top companies operating in the market such as Ally Financial Inc., Bank of America Corporation, BNP Paribas Fortis, Citigroup, Inc., Fannie Mae, JPMorgan Chase & Co, Mr. Cooper Group Inc., PT Bank Central Asia Tbk, QNB, Royal Bank of Canada, Rocket Mortgage, LLC, Social Finance, Inc., Standard Chartered, Truist, Wells Fargo, ClearCapital.com, Inc. and Roostify, Inc. These players have adopted various strategies to increase their market penetration and strengthen their position in the accounting and budgeting software industry.
KEY BENEFITS FOR STAKEHOLDERS
- The study provides in-depth analysis of the global mortgage lending market along with current trends and future estimations to illustrate the imminent investment pockets.
- Information about key drivers, restrains, & opportunities and their impact analysis on the global mortgage lending market size are provided in the report.
- The Porter’s five forces analysis illustrates the potency of buyers and suppliers operating in the industry.
- The quantitative analysis of the global mortgage lending market from 2021 to 2031 is provided to determine the market potential.
Key Market Segments
By Type of Mortgage Loan
- Conventional Mortgage Loans
- Jumbo Loans
- Government-insured Mortgage Loans
- Others
By Mortgage Loan Terms
- 30-year Mortgage
- 20-year Mortgage
- 15-year Mortgage
- Others
By Interest Rate
- Fixed-rate Mortgage Loan
- Adjustable-rate Mortgage Loan
By Provider
- Primary Mortgage Lender
- Primary Mortgage Lender
- Banks
- Credit Unions
- NBFC's
- Others
- Secondary Mortgage Lender
By Region
- North America
- U.S.
- Canada
- Europe
- UK
- Germany
- France
- Italy
- Spain
- Netherlands
- Rest of Europe
- Asia-Pacific
- China
- Japan
- India
- Australia
- South Korea
- Singapore
- Rest of Asia-Pacific
- LAMEA
- Latin America
- Middle East
- Africa
Key Market Players
- Ally
- Bank of America Corporation
- BNP Paribas
- China Zheshang Bank
- Federal National Mortgage Association (FNMA)
- JP Morgan & Chase
- Mitsubishi UFJ Financial Group
- PT Bank Central Asia Tbk
- Qatar National Bank
- Royal Bank of Canada
- Rocket Mortgage, LLC
- Sofi
- Standard Chartered PLC
- Truist financial corporation
- Clear Capital
- Roostify
- Mr. Cooper
Table of Contents
CHAPTER 1: INTRODUCTION
CHAPTER 2: EXECUTIVE SUMMARY
CHAPTER 3: MARKET OVERVIEW
CHAPTER 4: MORTGAGE LENDING MARKET, BY TYPE OF MORTGAGE LOAN
CHAPTER 5: MORTGAGE LENDING MARKET, BY MORTGAGE LOAN TERMS
CHAPTER 6: MORTGAGE LENDING MARKET, BY INTEREST RATE
CHAPTER 7: MORTGAGE LENDING MARKET, BY PROVIDER
CHAPTER 8: MORTGAGE LENDING MARKET, BY REGION
CHAPTER 9: COMPANY LANDSCAPE
CHAPTER 10: COMPANY PROFILES
List of Tables
List of Figures
Executive Summary
According to the report, titled, “Mortgage Lending Market," the mortgage lending market was valued at $11,487.23 billion in 2021, and is estimated to reach $27,509.24 billion by 2031, growing at a CAGR of 9.5% from 2022 to 2031.The shift to digital platform of mortgage lenders is driving the growth of mortgage lending market globally. Moreover, increasing implementation of technologies such as automation of underwriting processes, artificial intelligence (AI) and machine learning (ML) is propelling the mortgage lending market growth. However, risk of losing collateral and asset depreciation is restraining the growth of mortgage lending market. On the contrary, initiatives of banks and government authorities in the mortgage lending market is expected to create lucrative opportunities for the mortgage banking to grow in upcoming years.
For instance, in India, higher disbursals of mortgage loans have been made possible by government initiatives like extending emergency credit line guarantee scheme (ECLGS) support of about $4 million, regulatory reforms like loan restructuring, and the quick implementation of these initiatives by the lenders using data analytics. These initiatives have strengthened MSMEs in the region which has benefited the mortgage lending industry.
By provider, the primary mortgage lender segment acquired a major share. Originators and mortgage bankers are not banks in and of themselves; rather, they assist in the transaction and submit the mortgage request to a bank for loan closing. Since they direct clients to primary lenders, the brokers are paid for their services. The borrowers, on the other hand, stand to benefit by having the broker look around for the best offer based on the borrower's credit and the requested parameters. Therefore, these are the major trends for primary mortgage lender.
Region wise, North America dominated the mortgage lending market size in 2021. This was attributed to the fact that the federal government created several programs, or government sponsored entities, to foster mortgage lending, construction and encourage home ownership. These programs include the Government National Mortgage Association (known as Ginnie Mae), the Federal National Mortgage Association (known as Fannie Mae) and the Federal Home Loan Mortgage Corporation (known as Freddie Mac). Hence, the region has largest mortgage lenders globally. Thus, these increasing initiative by the government is fueling the growth of the market in the region.
Mortgage rates decreased significantly as a result of the Federal Reserve's initiatives to make it simpler for people to borrow money during the pandemic, however they have recently started to rise again. On the other hand, a lot of people have struggled to keep up with their mortgage payments as a result of job loss brought on by COVID-19. As part of the CARES Act, Congress gave COVID-19-affected Americans the ability to request mortgage forbearance for up to a year in increments of six months if they had a government-backed loan.
Key Findings of the Study
- On the basis of mortgage loan term, the 30-year mortgage segment accounted for the highest mortgage lending market share, in terms of revenue in 2021.
- On the basis of interest rate, the adjustable-rate mortgage loan segment is expected to exhibit the fastest growth rate in the mortgage lending market trends.
- On the basis of region, North America generated the highest revenue in 2021.
- The key players operating in the mortgage lending market analysis include Ally Financial Inc., Bank of America Corporation, BNP Paribas Fortis, Citigroup, Inc., Fannie Mae, JPMorgan Chase & Co, Mr. Cooper Group Inc., PT Bank Central Asia Tbk, QNB, Royal Bank of Canada, Rocket Mortgage, LLC, Social Finance, Inc., Standard Chartered, Truist, Wells Fargo, ClearCapital.com, Inc. and Roostify, Inc. These players have adopted various strategies to increase their market penetration and strengthen their position in the industry
Companies Mentioned
- Ally
- Bank of America Corporation
- Bnp Paribas
- China Zheshang Bank
- Federal National Mortgage Association (Fnma)
- Jp Morgan & Chase
- Mitsubishi Ufj Financial Group
- Pt Bank Central Asia Tbk
- Qatar National Bank
- Royal Bank of Canada
- Rocket Mortgage, LLC
- Sofi
- Standard Chartered plc
- Truist Financial Corporation
- Clear Capital
- Roostify
- Mr. Cooper
Methodology
The analyst offers exhaustive research and analysis based on a wide variety of factual inputs, which largely include interviews with industry participants, reliable statistics, and regional intelligence. The in-house industry experts play an instrumental role in designing analytic tools and models, tailored to the requirements of a particular industry segment. The primary research efforts include reaching out participants through mail, tele-conversations, referrals, professional networks, and face-to-face interactions.
They are also in professional corporate relations with various companies that allow them greater flexibility for reaching out to industry participants and commentators for interviews and discussions.
They also refer to a broad array of industry sources for their secondary research, which typically include; however, not limited to:
- Company SEC filings, annual reports, company websites, broker & financial reports, and investor presentations for competitive scenario and shape of the industry
- Scientific and technical writings for product information and related preemptions
- Regional government and statistical databases for macro analysis
- Authentic news articles and other related releases for market evaluation
- Internal and external proprietary databases, key market indicators, and relevant press releases for market estimates and forecast
Furthermore, the accuracy of the data will be analyzed and validated by conducting additional primaries with various industry experts and KOLs. They also provide robust post-sales support to clients.
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