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With fixed rate mortgages no longer on sale, I thought it would be useful to take a look at the top adjustable rate mortgage lenders across the country.
These are the companies that generated the most ARMs based on loan volume for the most recent year’s data.
In 2021, some $611 billion in ARMs were funded by more than 3,000 mortgage companies. So it was clearly not a niche product.
But 10 companies stood above the rest. What else? they are all banks,
Read on to see the top 10 lists for more details.
Top Adjustable-Rate Mortgage Lenders in the US
| Category | company’s name | 2021 loan amount |
| 1. | Follow | $41.8 billion |
| 2. | Bank of America | $33.5 billion |
| 3. | First Republic Bank | $23.8 billion |
| 4. | Wells Fargo | $21.1 billion |
| 5. | us bank | $18.0 billion |
| 6. | PNC Bank | $11.7 billion |
| 7. | Charles Schwab Bank | $11.6 billion |
| 8. | citizen bank | $11.0 billion |
| 9. | Union Bank | $10.1 billion |
| 10. | City Bank | $10.0 billion |
JPMorgan Chase was ranked first with approximately $42 billion of adjustable-rate mortgages (ARMs) financed in 2021, according to HMDA data. richie may,
That was more than enough to take the top spot, with second-place Bank of America holding $33.5 billion in ARMs.
First in third was Republic Bank (yes He bank) financed $23.8 billion, making them a huge ARM loan player as well.
And if the recent fallout is sustainable, it will make a big difference in the residential ARM loan market.
Wells Fargo ranked fourth with $21.1 billion in ARM origination volume, followed by US Bank with $18 billion.
The rest of the top 10 included PNC Bank, Charles Schwab Bank, Citizens Bank, Union Bank and Citibank.
For the record, Union Bank was slated to be acquired by US Bank in late 2022. So there can be two vacancies in the top 10.
The top non-bank ARM lender was Rocket Mortgage, which originated $6.2 billion in ARMs in 2021.
Top 7/1 ARM Lenders in the US
| Category | company’s name | 2021 loan amount |
| 1. | Follow | $13.2 billion |
| 2. | Bank of America | $11.7 billion |
| 3. | Wells Fargo | $11.1 billion |
| 4. | First Republic Bank | $8.9 billion |
| 5. | Charles Schwab Bank | $4.1 billion |
| 6. | Union Bank | $3.6 billion |
| 7. | us bank | $3.1 billion |
| 8. | rocket hostage | $3.0 billion |
| 9. | PNC Bank | $2.8 billion |
| 10. | NYCB (Flagstar) | $2.8 billion |
There are many different adjustable-rate mortgages, with the 7/1 ARM being perhaps the most popular lately.
It offers a full 84 months of fixed payments before becoming adjustable.
Chase leads the category with $13.2 billion in funding, followed by Bank of America with $11.7 billion and Wells Fargo with $11.1 billion.
In fourth place was First Republic Bank with $8.9 billion, and Charles Schwab Bank rounded out the top five with $4.1 billion.
The bottom half of the top 10 includes Union Bank, US Bank, Rocket Mortgage, PNC Bank and New York Community Bank.
Most recently, NYCB’s Flagstar Bank unit took over the deposits and some of the loan portfolio of the failed Signature Bank.
7/1 The next largest nonbank player in the ARM game was the $2.0 billion funded LonDepot.
Top 5/1 ARM Lenders in the US
| Category | company’s name | 2021 loan amount |
| 1. | Follow | $17.3 billion |
| 2. | NYCB (Flagstar) | $3.4 billion |
| 3. | Bank of America | $2.6 billion |
| 4. | Charles Schwab Bank | $2.4 billion |
| 5. | state employee cu | $2.3 billion |
| 6. | signature bank | $1.6 billion |
| 7. | Luther Burbank Thrift | $1.5 billion |
| 8. | Exos Bank | $1.4 billion |
| 9. | Wells Fargo | $1.4 billion |
| 10. | Pacific Premiere | $1.2 billion |
Another popular type of adjustable-rate mortgage is the 5/1 ARM, which offers fixed payments for 60 months.
Once again, Chase led the category with $17.3 billion in funds, blowing away the competition and then some.
NYCB (Flagstar Bank) was at number two with $3.4 billion, followed by Bank of America with $2.6 billion.
Charles Schwab Bank ranked fourth with $2.4 billion, and State Employees Credit Union was fifth with $2.3 billion.
The North Carolina-based company was the only credit union to make the top-10 list.
The sixth spot went to the now-defunct Signature Bank, and so-called boutique bank Luther Burbank Savings took the seventh spot.
Exos Bank, Wells Fargo and Pacific Premier Bank rounded out the top ten.
Where to get an adjustable-rate mortgage?
As you can see from these lists, depository banks dominate adjustable-rate mortgage lending.
So if you want to get your hands on an ARM instead of the boring old 30 year old fix, a bank might be a good place to look.
In fact, only two non-bank lenders made it into the top-25, Rocket Mortgage and LoanDepo.
Banks keep ARMs and other non-agency loans (Fannie/Freddie/FHA/VA) on their books.
This allows them to offer portfolio loans with their own specific terms that other companies cannot.
If you’re considering an ARM versus a fixed-rate mortgage, be sure to look into the spreads between the products.
It is the difference in interest rate that will help you determine the potential savings, which must also be weighed against the risks of resetting the ARM to a higher level.
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