It was a good news/bad news story for the second-lien market in the first quarter of 2022. Production increased nicely but outstandings fell. (Includes three data charts.)

It is tougher times for banks engaged in financing nonbank originators. Usage rates are down significantly and some customers are consolidating lines of credit. (Includes data chart.)

For years, the number of subservicing contracts has proliferated. But with loan production falling, there is less of a rush to use outsourcing vendors. Some lenders may even move the function inhouse. (Includes data chart.)

When rates increased substantially in the first quarter, many nonbanks moved aggressively to mark up the asset value of their MSR portfolios. There’s nothing wrong with that, but the volatile nature of servicing makes regulators nervous. (Includes data chart.)

Sharply higher interest rates clobbered origination income in the first quarter of 2022, but there was a silver lining to this dark cloud: higher MSR valuations. (Includes data chart.)

Delinquencies, after spiking at the start of the pandemic, are back at manageable levels. Serious delinquency rates are still elevated, though. (Includes data chart.)

It stands to reason that as origination activity declines, some CEOs might earn less money this year than last. But a few are sharing the pain by taking a salary of $1 a year.

Another blow-out earnings quarter from Freddie Mac. But earnings were juiced a bit by loan-loss reserve recaptures. Meanwhile, its net worth continues to increase.

In years past, LendingTree’s Doug Lebda was one of the industry’s highest paid executives. In a few weeks we’ll get a look at his 2021 compensation package. Also, Ocwen’s chief received a nice raise last year.

So far, among public companies, Mr. Cooper CEO Jay Bray was the top mortgage earner in 2021 but many lenders have yet to file proxy statements. Meanwhile, MBA trimmed its production forecast.