But since the new entrants are all small, it will take a lot of them to make up for any pullback from the larger banking organizations. Taken together, these data demonstrate that while the community bank share of the mortgage market is not large, it is significant.
Thus, I would conclude from this evidence that the additional capacity provided by smaller lenders is important, especially at the margin, and could contribute to lowering mortgage rates and loosening lending standards. How important is mortgage lending to the community banking model?