When the Federal Reserve begins cutting rates next year, the mortgage industry will become “fat” again. At least that’s what some believe. The immediate challenge: surviving until then.

Government-backed originations increased in the second quarter thanks to a seasonal boost in purchase mortgages. FHA production outpaced VA lending, and the top lenders largely increased originations. (Includes three data charts.)

Peter Boomer, a former PNC Bank executive, joins Guaranteed Rate as executive vice president.

With employee counts shrinking and Wells Fargo exiting the correspondent channel, lenders reported an increase in margins in the second quarter.

The big winner was the Finovation team, which floated the idea of creating an industry cooperative similar to the Mortgage Electronic Registration System.

With Wells Fargo exiting the correspondent channel in the first quarter, no single lender filled the bank’s void. Still, the correspondent channel actually gained market share in the conventional-conforming sector. (Includes two data charts.)

The volume of mortgages classified as held for sale at banks and thrifts ticked up in the first quarter, ending a long decline. Loan sales by banks also outpaced originations of mortgages intended for sale. (Includes two data charts.)

First the good news: Several shops are experiencing a strong second quarter, with production on the rise sequentially. Then again, the first quarter was notably weak. As for the rest of the year, executives are hopeful rates are about to peak.

Originations of expanded-credit mortgages declined in the first quarter, but not as much as total first-lien production. Trends among expanded-credit lenders were decidedly mixed. (Includes data chart.)

Texas-based Colonial Savings, which has been offering home loans since its founding in 1952, will stop originating mortgages at the end of July.