Originations of jumbo mortgages increased at First Republic Bank despite rising interest rates. Officials at the bank said a number of factors led to the nearly 20% increase in originations during the January-March cycle.

Rising interest rates are leading to diminished demand for non-QM whole loans saddled with lower rates. Longer term, industry participants remain optimistic.

Correspondent sales of jumbo mortgages to unaffiliated buyers more than doubled in 2021, with Guaranteed Rate leading the pack. (Includes two data charts.)

Originations of adjustable-rate mortgages declined by 4.8% from the third to the fourth quarter and by 13.7% for the full year 2021. Bank of America was the top ARM producer. The loans largely remain in portfolio. (Includes data chart.)

Correspondents and brokers took back some market share in 2021 that had been lost to the retail channel in 2020. In the conventional-conforming market, retail share held steady, while some volume shifted from correspondents to brokers. (Includes two data charts.)

With interest rates starting to rise, production income took a hit in the fourth quarter of 2021. While servicing income increased, the mortgage business was less profitable. (Includes data chart.)

Originations of jumbo mortgages shifted somewhat toward the correspondent channel during the fourth quarter of 2021, helped by JPMorgan Chase and Wells Fargo. (Includes data chart.)

Higher interest rates took a bite out of Angel Oak Mortgage’s profits in the fourth quarter, but its non-QM originations continue to remain strong. The firm also plans to maintain regular issuance of MBS.

The firm boosted its originations of non-QMs during the fourth quarter, though company officials suggested loan production in the first quarter could decline.

An increase in the share of minorities working as loan originators could boost approval rates for loan applications by minority borrowers, according to findings from two new studies.