Big Banks Back Away From Mortgages; Nonbank Lenders Pick Up Slack

There is still way too much dirty paper on the street. Maybe they are Just running out of money to buy off the judiciary.

Justice League

NEW YORK (TheStreet) — Big banks are continuing to back away from offering mortgages, allowing nonbank lenders such as Freedom Mortgage and Quicken Loans to grab a bigger share of the market.

Although the big banks such as Bank of America(BACGet Report) , JPMorgan Chase(JPMGet Report) and Wells Fargo(WFC) are still happy to provide mortgages to wealthy borrowers with strong credit records, they are much more cautious about higher-risk loans, even ones that meet underwriting requirements of government agencies such as the Federal Housing Administration, Fannie Mae(FNMA) , Freddie Mac(FMCC) or Ginnie Mae.

That has created an opportunity for nonbank lenders such as Freedom Mortgage, a privately held lender based in Mount Laurel, N.J.

Although fewer mortgages were originated last year than in 2013, Freedom Mortgage actually increased…

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