Mortgage lenders are trying to cut costs as quickly as possible as originations evaporate. Only so many companies can survive a much smaller market, turning the business into a game of musical chairs.
Big banks boosted their appetite for jumbo mortgages in the past decade thanks to regulatory changes following the 2008 financial crisis, according to a new finding from the Federal Reserve Bank of New York.
The mortgage industry is facing challenging times, thanks, in part, to the Fed’s constant rate hikes. Fighting inflation is a laudable goal but lenders wonder how badly the housing-finance system might be damaged.
Correspondent originators are better at finding purchase-mortgage business, and that’s why the channel’s market share rose in the second quarter. Brokers saw the biggest decline. (Includes six data charts.)
Purchase-mortgage originations saw a healthy gain in the second quarter, but not enough to offset plunging refinance activity. Production was up in jumbo and ECM lending. (Includes two data charts.)
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