Coming changes in the U.S. banking business will remake the mortgage market -- even if banks won't be abandoning mortgages anytime soon -- according to industry expert Christopher Whalen, in recent commentary. Whalen writes:

[W]hat is likely to evolve is a more even distribution of the $9.8 trillion U.S. loan-servicing market. Whereas today Wells Fargo and JPMorgan Chase account for about a third of the total servicing footprint, in the future a greater number of both commercial banks and nonbanks will be involved in the business. This will be better for consumers and for the financial services industry, because the operational risks and rewards of loan servicing will be spread across a greater capital base.