Friday, January 27, 2023
HomeBank LoanPrime Mortgage Lenders in Alabama

Prime Mortgage Lenders in Alabama


Today we’ll take a look at the top mortgage lenders in Alabama, based on their most recent year’s loan volume.

This is a list of the largest mortgage lenders in the state, not necessarily the top-rated ones (though those two things can coexist).

Despite being a less populated state, more than 800 lenders still managed to fund more than $51 billion in home loans there.

But like the other 49 states, one company managed to beat out the competition, and by a wide margin at that.

Read on to see which companies topped the list in the state of Alabama last year.

Top Mortgage Lenders in Alabama (Overall)

Ranking Company Name 2021 Loan Volume
1. Rocket Mortgage $3.0 billion
2. Pennymac $2.0 billion
3. Regions Bank $2.0 billion
4. Freedom Mortgage $1.5 billion
5. Fairway Independent $1.5 billion
6. Wells Fargo $1.5 billion
7. Trustmark $1.3 billion
8. UWM $1.2 billion
9. Renasant Bank $1.2 billion
10. Homepoint $1.1 billion

If you had to guess which mortgage company did the most lending in Alabama, you’d probably guess right.

That’s because the nation’s top mortgage lender overall was also the biggest lender in Bama. Yes, I’m talking about Rocket Mortgage, which funded $3 billion, according to HMDA data from Richey May.

That was 150% more than their closest competitor, Pennymac, which came in second with $2 billion.

Birmingham, Alabama-based Regions Bank snagged third with a similar $2 billion, a positive development for local mortgage companies.

In fourth was Freedom Mortgage with $1.5 billion, followed by Fairway Independent Mortgage with a comparable total.

The bottom half of the top 10 included San Francisco-based Wells Fargo, Trustmark National Bank, United Wholesale Mortgage, Renasant Bank, and Homepoint.

Trustmark is headquartered in nearby Jackson, Mississippi, while Renasant Bank is located in Tupelo, MS.

So just one of the top 10 mortgage companies in the state of Alabama is homegrown.

Top Alabama Mortgage Lenders (for Home Buyers)

Ranking Company Name 2021 Loan Volume
1. Pennymac $1.2 billion
2. Fairway Independent $1.1 billion
3. Regions Bank $901 million
4. Trustmark $828 million
5. FirstBank $765 million
6. Renasant Bank $660 million
7. Rocket Mortgage $614 million
8. Wells Fargo $598 million
9. UWM $588 million
10. Homepoint $542 million

The picture changes quite a bit when we look only at home purchase lending. Then Pennymac takes the top spot with $1.2 billion funded.

In second was Wisconsin-based Fairway Independent with $1.1 billion, followed by Regions Bank with $901 million.

The next three spots all went to banks, including Trustmark, FirstBank, and Renasant Bank.

That makes sense since home buyers often turn to brick-and-mortar institutions or companies they already do business with.

The rest of the top 10 included Rocket Mortgage, Wells Fargo, UWM, and Homepoint.

Top Refinance Lenders in Alabama (for Existing Homeowners)

Ranking Company Name 2021 Loan Volume
1. Rocket Mortgage $2.3 billion
2. Freedom Mortgage $1.3 billion
3. Regions Bank $911 million
4. Wells Fargo $829 million
5. Pennymac $828 million
6. loanDepot $662 million
7. Mr. Cooper $641 million
8. UWM $615 million
9. Homepoint $562 million
10. Renasant Bank $511 million

When we filter out the purchase loans and focus on mortgage refinances, Rocket Mortgage easily takes the top spot with $2.3 billion funded.

That was a full billion more than second place Freedom Mortgage, and much more than Region Bank’s $911 million.

Two other heavyweights rounded out the top five, including Wells Fargo and Pennymac.

And spots six through 10 went to loanDepot, Mr. Cooper, UWM, Homepoint, and Renasant Bank.

No real surprises, and only one Alabama-based company in the list.

Who Are the Best Alabama Mortgage Lenders?

If we consider customer reviews as opposed to total loan volume, we might be able to determine the best vs. top lenders in the state.

Of course, reviews are subjective and there are many review websites out there. But I typically check out Zillow to see which lenders are faring the best in each state.

Turns out Birmingham-based SouthPoint Bank has the best rating, a 4.99 out of a possible 5 from about 170 reviews.

Not far off is fellow Birmingham-based lender MortgageRight with a 4.97/5 from roughly 550 reviews, a much higher total.

Meanwhile, Tuscaloosa-based First Federal Bank has a 4.97/5 rating from nearly 200 reviews.

Those big names on the list also have Zillow ratings, including Rocket’s 4.48/5 , Pennymac’s 4.40/5, Freedom Mortgage’s 4.85/5, and Fairway Independent Mortgage’s 4.95/5.

Take the time to consider lenders both big and small, and nationwide or local to find the right fit for your home loan needs.

You may also want to speak to a mortgage broker or two, who can shop your loan with multiple companies at once.

(photo: formulanone)

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