Nearly all publicly traded banks reported declining income from mortgage banking in the fourth quarter of 2025. But most of them saw an increase in earnings for the full year. (Includes data table.)
The parent companies of Planet Home Lending and United Wholesale Mortgage were hit with rating moves by Fitch Ratings, which cited an increase in corporate leverage at the companies.
Banks and thrifts had a combined $2.49 billion of mortgage-banking income in the third quarter. Western Alliance Bank stood out, more than doubling its earnings from the second quarter. (Includes data table.)
Leaders at the three major credit bureaus, which own VantageScore, expect to see strong revenues and profits as the GSEs allow VantageScore to compete with FICO.
Lenders with high adoption rates for tools from Freddie Mac like automated collateral estimator and asset and income modeler have significantly lower per-loan costs and higher per-loan profits, the GSE says.
Despite lackluster new origination volume in the third quarter, most nonbanks reported solid gains in production-related income. Many of them needed it to offset sharp declines in servicing income. (Includes data table.)
Pennymac asked the Financial Accounting Standards Board to clarify accounting practices involving mortgage servicing rights and recapture assumptions. The effort has support from some major MSR buyers who are looking for a level playing field.
After originating HELOCs on its own as a proof-of-concept, Figure Technology Solutions is now largely facilitating originations and loan sales for others, charging fees along the way. The company generated $89.8 million of net income in the third quarter.
Although most of the large banks reported substantial increases in mortgage-banking income, many mid-size institutions struggled in the third quarter. (Includes data table.)
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