Executives at mortgage companies anticipate originations will pick up as soon as interest rates on mortgages decline. However, the MBA’s projections suggest little movement in rates for the rest of this year.
Retail lending among lenders in the analysis declined sharply during the first quarter while the correspondent and broker channels posted more modest declines in nonconforming production. (Includes two data tables.)
ARMs accounted for 12.1% of total residential mortgage originations in the first quarter of 2025, down more than a full percentage point compared with the previous quarter. Still, production of the loans was up from the first quarter of 2024. (Includes data table.)
The nonbank share of total originations increased from 65.2% in 2024 to 66.4% in the first quarter of 2025. Four of the five largest lenders in the residential mortgage market are nonbanks. (Includes two data tables.)
The retail channel lost market share in conventional-conforming, government-insured and nonconforming originations in the first quarter of 2025. (Includes two data tables.)
Zillow’s “enhanced markets” strategy pairs high-performing real estate agents with loan originators from Zillow’s mortgage unit. The effort helped Zillow double its originations on an annual basis in 2024.
Wells Fargo has the freedom to increase activity in various financial products now that the bank is out from under an asset cap. And officials at the bank have plenty of plans for growth, but not with mortgages.
Agency securitization of high-balance loans declined by 46.0% in the first quarter. The non-agency jumbo share of first liens was flat compared with the fourth quarter while the agency high-balance share dwindled. (Includes three data tables.)
The MBA projects that nearly 30% of originations will be through eNotes in 2028, up from 10% now. eNotes can help reduce costs for lenders and improve customer service, according to industry participants.