Home buyers have ample options when choosing a mortgage lender, including neighborhood credit unions, big-name national banks and online-only lenders. But which type appeals the most to consumers across the country? A new NerdWallet analysis shows that for many people, a local bank or credit union — one headquartered in their state — is the top choice.
NerdWallet reviewed 2015 data —the most recent available — from the Home Mortgage Disclosure Act, which collects mortgage transaction information from all lenders in the 50 states and Washington, D.C. In more than 60% of cases, the top mortgage lender was a local one.
If you’re shopping for a home, getting a mortgage preapproval with your lender of choice before you make an offer can give you a competitive edge.
- Wells Fargo wins: Wells Fargo was the most commonly used mortgage lender nationwide during 2015. Quicken was the second most popular, and Bank of America was third.
- Local lenders go toe-to-toe with big banks: However, for each state’s top lender, local institutions came out on top in 60.8% of cases, or 31 states. And home buyers used local banks or credit unions for the majority of all mortgages in nearly half of the states (22). In Hawaii and South Dakota, the top five mortgage lenders were local. Buyers might trust local lenders more, or in some cases, they might offer lower interest rates.
- Market share is spread out: The average market share for each state’s No. 1 lender was just over 10%. The top lender held the highest percentage of the market in Alaska, where locally based Residential Mortgage LLC originated 29% of the state’s loans. The top lender had the lowest percentage of market share in Texas, where Wells Fargo originated only 4% of loans.
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Most popular lender by state
|State||Most popular lender||Market share of most popular lender within state|
|Alabama||Regions Bank (AL)||6%|
|Alaska||Residential Mortgage LLC (AK)||29%|
|Arizona||Nova Home Loans (AZ)||8%|
|Arkansas||Arvest Bank (AR)||14%|
|California||Wells Fargo Bank, NA (SD)||10%|
|Colorado||Cherry Creek Mortgage Co. Inc. (CO)||5%|
|Connecticut||Wells Fargo Bank, NA (SD)||5%|
|Delaware||New Penn Financial LLC (PA)||8%|
|Florida||Wells Fargo Bank, NA (SD)||5%|
|Georgia||Wells Fargo Bank, NA (SD)||6%|
|Hawaii||Central Pacific Bank (HI)||9%|
|Idaho||Idaho Central Credit Union (ID)||13%|
|Illinois||Guaranteed Rate Inc. (IL)||8%|
|Indiana||Ruoff Mortgage Company Inc. (IN)||7%|
|Iowa||University Of Iowa Community Credit Union (IA)||12%|
|Kansas||Capitol Federal Savings Bank (KS)||8%|
|Kentucky||Century Lending Company (KY)||7%|
|Louisiana||GMFS LLC (LA)||12%|
|Maine||Residential Mortgage Services (ME)||16%|
|Maryland||First Home Mortgage (MD)||7%|
|Massachusetts||Guaranteed Rate Inc. (IL)||5%|
|Michigan||Quicken Loans (MI)||7%|
|Minnesota||Bell State Bank & Trust (ND)||10%|
|Mississippi||BancorpSouth Bank (MS)||12%|
|Missouri||DAS Acquisition Company LLC (MO)||8%|
|Montana||First Interstate Bank (MT)||19%|
|North Carolina||State Employees' Credit Union (NC)||9%|
|North Dakota||Gate City Bank (ND)||18%|
|Nebraska||First National Bank Of Omaha (NE)||14%|
|Nevada||Guild Mortgage Company (CA)||7%|
|New Hampshire||Residential Mortgage Services (ME)||16%|
|New Jersey||Wells Fargo Bank, NA (SD)||11%|
|New Mexico||First Mortgage Company LLC (OK)||13%|
|New York||Wells Fargo Bank, NA (SD)||10%|
|Ohio||The Huntington National Bank (OH)||6%|
|Oklahoma||BOKF, NA (OK)||9%|
|Oregon||Guild Mortgage Company (CA)||10%|
|Pennsylvania||Wells Fargo Bank, NA (SD)||5%|
|Rhode Island||Coastway Community Bank (RI)||8%|
|South Carolina||Wells Fargo Bank, NA (SD)||6%|
|South Dakota||Plains Commerce Bank (SD)||13%|
|Tennessee||Mortgage Investors Group (TN)||8%|
|Texas||Wells Fargo Bank, NA (SD)||4%|
|Utah||Academy Mortgage Corporation (UT)||11%|
|Vermont||New England Federal Credit Union (VT)||27%|
|Virginia||Wells Fargo Bank, NA (SD)||6%|
|Washington||HomeStreet Bank (WA)||8%|
|Washington, D.C.||First Savings Mortgage Corporation (VA)||12%|
|West Virginia||PrimeLending (TX)||7%|
|Wisconsin||Associated Bank, NA (WI)||6%|
|Wyoming||First Interstate Bank (MT)||24%|
Emily Starbuck Crone is a staff writer at NerdWallet, a personal finance website. Email: email@example.com. Twitter: @emstarbuck. Daniel Tonkovich is a data analyst at NerdWallet. Email: firstname.lastname@example.org.
Updated March 22, 2017.