Wells Fargo is in the process of changing where residential loans fit into the bank’s overall business. The company’s CEO cited GSE mortgages as a product that presents risk to the bank.

The rapid increase in interest rates seen in the first quarter took a big bite out of income from production and helped to goose servicing earnings. And while a downturn in originations was expected this year, it could be worse than expected.

The ratio measuring the fair value of banks’ mortgage servicing rights compared with their servicing for others hit a post-2008 high as of the end of March thanks to the spike in interest rates.

According to new research paper, nonbanks use their MSRs to help fund operations in a rising rate environment, resulting in stronger originations in comparison to banks.

Altisource setting up alternative lending operations; Reverse Mortgage Funding offers non-agency MBS with proprietary reverse mortgages; Dovenmuehle assessed as “above average” by Moody’s.

The SEC has a proposed rule that would mandate climate-related disclosures. The Federal Housing Finance Agency and federal banking regulators are also incorporating climate-change assessments.

Trends varied among the largest servicers of jumbo mortgages in the first quarter. Portfolios increased overall while the top two jumbo servicers reduced their portfolios. (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.)

The two REITs have seen success even as profits from mortgage lending decline thanks to diversification efforts involving business-purpose lending and venture capital investments.

FHA and VA delinquencies among Ginnie servicers continued to drop from their pandemic peaks during the first quarter of 2022. Three of the top five servicers increased their government-insured servicing portfolio. (Includes four data charts.)