What has the mortgage banking industry experienced in recent years?

The mortgage banking industry has indeed experienced rapid consolidation in recent years. This trend refers to the increasing number of mergers and acquisitions among mortgage lenders, which often results from various factors such as economic pressures, competitive market dynamics, and the quest for efficiency and scale. As smaller companies are absorbed into larger institutions, the overall landscape of the mortgage industry becomes more concentrated, with fewer players dominating the market.

Increased consolidation can lead to a more streamlined operation for the remaining firms, enabling them to capitalize on economies of scale. Furthermore, this consolidation can enhance the competitiveness of larger entities as they leverage their resources to better serve consumers and navigate complex regulatory environments.

While the other options highlight different aspects or potential scenarios within the industry, they don't accurately reflect the predominant trend seen in recent years. For instance, while some may argue there have been periods of stagnant development or increased regulation, these factors often influence or drive the consolidation process rather than define the primary experience of the industry.