Nonbanks with large servicing portfolios are generating high margins from originations. The production is focused on agency mortgages, as nonbanks have largely stopped originating non-agency loans.

Analysts expect there will not be a surge in home equity line of credit draws during the economic crisis sparked by the pandemic.

Is warehouse credit getting so tight that some nonbanks are considering ei-ther purchasing or becoming affiliated with a federally insured depository? Looks that way.

Banks increased reserves for loans held in portfolio during the first quarter on implementation of new accounting standards. Many delayed the impact of CECL on regulatory capital.

A new shoe has dropped in the nonbank liquidity saga: Warehouse credit. JPMorgan Chase, the largest player in the sector, is cutting back.

Industry analysts suggest lenders sell loans quickly and use best-efforts pricing options to offset volatility caused by the coronavirus crisis.

Lenders and servicers alike are facing huge challenges due to the coronavirus, with many rising to the operational challenge. However, when it comes to MSR sales, the picture is bleak.

Despite a modest gain in production volume, income from originations and secondary market fell from the third to the fourth quarter. But higher interest rates stabilized performance on the servicing side of the business. (Includes data chart.)