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Big banks retreating from home loan business

January 20, 2016

Via: CNBC
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Big banks are lending less to homebuyers, or they’re making less on loans — and sometimes, it’s a combination of both.

Some are making less on home loans, in part owed to the Fed and its yearslong zero interest rate policy. But the trend also coincides with a rise in nonbank lenders, like Quicken Loans, that have been gobbling up market share in mortgages in recent years.

“The mortgage market is coming off the highs it realized in 2012,” said Erik Oja, S&P Capital IQ banking analyst. “A lot of it is expected, in terms of origination.”

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