The mortgage industry’s worst kept secret? A lot of originators are losing money on new production. How long can nonbank shops live off the fat of 2020-2021? We’re about to find out.
Lenders say the 15-bp surcharge on broker loans penalizes low- and moderate-income borrowers and flies in the face of the principle of the level playing field.
There have been plenty of “asset” sales by mortgage firms this year — MSRs, for instance — but not “whole” company transactions. Is the bell about to ring?
Depository institutions’ share of mortgage originations grew for the fifth straight quarter during the April-June cycle, but nonbanks still dominated the market. (Includes two data charts.)
Wells Fargo isn’t trying to be the largest player in the mortgage market. Instead, the bank plans to focus on wealthy borrowers and customers that already have a relationship with the bank.
As nonbanks go, so too goes the warehouse lending sector. Enough said on that score. The second quarter brought additional deterioration in commitment levels. (Includes data chart.)
The fintech that promised to smooth out borrowers’ home transitions with cash offers and “sell before you buy” financing has shut shop, citing market conditions and difficulty raising capital.
Most top lenders saw their production distribution shift dramatically toward purchase-mortgage lending in the second quarter. And nearly all shops reported declining refinance activity. (Includes four data charts.)
The top 22 executives at the nation’s publicly traded nonbanks earned a stunning $268 million in 2020, only to see that number get hammered last year, according to an analysis by IMF.
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