After noting a decline in market share during the second quarter, nonbanks increased their share of originations to 65.5% in the third quarter. The increase was driven by the largest nonbanks.
Endorsement activity involving traditional HECMs declined slightly and production of HECMs for home purchase increased during the third quarter. Mutual of Omaha remained the top HECM lender. (Includes three data tables.)
The correspondent channel’s share of originations increased for both conventional-conforming loans and nonconforming mortgages in the third quarter, according to a survey of lenders. Meanwhile, brokers gained share in the government-insured market. (Includes two data tables.)
About 40 million households are making consistent monthly rent payments that are equal to or greater than the average monthly mortgage payment, according to one estimate.
Originations through the retail channel increased during the third quarter of 2024, but correspondent and broker production grew at a faster pace. The retail share of total first-lien originations declined to 50.8%. (Includes six data tables.)
The increase in the 10-year Treasury rate following the November election and changes in expectations for interest rates have prompted economists to revise down their projections for originations in 2025.
Digitization will speed up the lending process and can lead to lower interest rates for borrowers, according to Anne Canfield, partner at The Majority Group.
Government-insured products accounted for 27.1% of total first-lien originations in the third quarter compared with a 25.3% share the previous quarter. Streamline refi programs helped increase FHA/VA market share. (Includes two data tables.)