NEW YORK ( TheStreet) -- Bank of America (BAC - Get Report) is seeing a recovery in its mortgage origination business and could see its market share grow in the coming quarters, according to analysts.
The bank was one of only two among the top 10 banks that saw an increase in its origination market share in the first quarter, according to a report from JPMorgan analyst Vivek Juneja. The bank saw mortgage originations rise 57% year over year to $23.9 billion in the first quarter, according to the report, giving it an estimated market share of 5%. That is up from a market share of 4.2% in the fourth quarter.
(WFC - Get Report) continues to dominate the business, though it is giving up share quite quickly. Its estimated market share has dropped from 35% in the first quarter of 2012 to 22% in 2013, according to Juneja. Wells Fargo has been decreasing its presence in the correspondent lending business.
More than 90% of Bank of America's originations in the first quarter came from refinancing. The bank said during its analyst call that it expects no slowdown in the pipeline and that it continues to expand hiring to keep pace with volumes.
Morgan Stanley analyst Betsy Graseck earlier this week upgraded the bank to overweight, arguing that it is in for a major earnings rebound. "We see an earnings inflection point based on the convergence of visible cost cutting, rising