After dominating the mortgage business throughout 2012, Wells Fargo (WFC -0.79%) and JPMorgan Chase (JPM -0.82%) both reported lower mortgage banking revenue for the first quarter of 2013. While these megabanks lost ground, smaller rival M&T Bank (MTB -0.10%) posted a 66% increase in mortgage banking revenue. Is this a sign of the largest banks losing their competitive advantage?
In this video, Motley Fool banking analyst David Hanson tells investors why losing market share in the mortgage business might not be a bad thing. After focusing resources on mortgage origination, these banks may be looking toward the next opportunity.