I think most nonbanks don't carry a residential real estate portfolio, although I never looked.
The problem with the nonbanks is that real estate downturns take time to resolve and making sure that NONBANKS have the Capital to cover GSE forced buybacks because their GSE delivered mortgages violated the Reps and Warranties Clause could become an issue.
From what I understand, most NONBANKS, like Quicken probably don't have Tier 1 Capital Ratios in the teens, like a lot of Banks.
Most banks, while they unload most to the GSES, they keep some residential real estate in their portfolio, here's JP Morgan's Residential Loan Portfolio, as of the end of 3Q23 (10q):
"At September 30, 2023, $229.3 billion, or 70% of the total
retained residential real estate loan portfolio, was
concentrated in California, New York, Florida, Texas and
Massachusetts, compared with $147.8 billion, or 62% at
December 31, 2022.
Refer to Note 12 for information on the geographic
composition and current estimated LTVs of the Firm’s
residential real estate loans."
Pg. 66 of 3q23 10q:
"Consumer, excluding credit card
Portfolio analysis
Loans increased compared to December 31, 2022 driven
by residential real estate loans associated with First
Republic and higher auto loans.
Residential real estate: The residential real estate
portfolio, including loans held-for-sale and loans at fair
value, predominantly consists of prime mortgage loans and
home equity lines of credit.
Retained loans increased compared to December 31, 2022,
driven by residential real estate loans associated with First
Republic. Retained nonaccrual loans decreased compared
to December 31, 2022. Net recoveries were lower for the
three and nine months ended September 30, 2023
compared to the same periods in the prior year driven by
lower prepayments due to higher interest rates.
Loans at fair value decreased from December 31, 2022,
driven by a decrease in CIB due to sales outpacing
purchases predominantly offset by an increase in Home
Lending as originations outpaced warehouse loan sales.
Nonaccrual loans at fair value decreased compared to
December 31, 2022, predominantly driven by CIB.
At September 30, 2023 and December 31, 2022, the
carrying value of interest-only residential mortgage loans
was $90.9 billion and $36.3 billion, respectively. The
increase was driven by First Republic. These loans have an
interest-only payment period generally followed by an
adjustable-rate or fixed-rate fully amortizing payment
period to maturity and are typically originated as higher-
balance loans to higher-income borrowers. The credit
performance of this portfolio is comparable with the
performance of the broader prime mortgage portfolio and
there were no charge-offs associated with First Republic for
the three and nine months ended September 30, 2023.
The carrying value of home equity lines of credit
outstanding was $16.4 billion at September 30, 2023,
which included $2.6 billion associated with First Republic.
The carrying value of home equity lines of credit
outstanding included $4.5 billion of HELOCs that have
recast from interest-only to fully amortizing payments or
have been modified and $4.5 billion of interest-only balloon
HELOCs, which primarily mature after 2030. The Firm
manages the risk of HELOCs during their revolving period by
closing or reducing the undrawn line to the extent
permitted by law when borrowers are exhibiting a material
deterioration in their credit risk profile."
