Wells Fargo has the freedom to increase activity in various financial products now that the bank is out from under an asset cap. And officials at the bank have plenty of plans for growth, but not with mortgages.
Agency securitization of high-balance loans declined by 46.0% in the first quarter. The non-agency jumbo share of first liens was flat compared with the fourth quarter while the agency high-balance share dwindled. (Includes three data tables.)
The MBA projects that nearly 30% of originations will be through eNotes in 2028, up from 10% now. eNotes can help reduce costs for lenders and improve customer service, according to industry participants.
Both the correspondent and broker channels have gained share from the retail channel. The first quarter of 2025 marked the third straight quarter in which retail accounted for less than 50% of total first-lien originations. (Includes six data tables.)
Non-agency jumbos accounted for 13.8% of total first-lien originations in the first quarter of 2025, compared with an 11.1% share in the first quarter of 2024. Chase remained the top jumbo producer and Redwood Trust is gaining momentum. (Includes data table.)
Originations of nonconforming mortgages increased by 45.7% on an annual basis in the first quarter of 2025. Government-insured lending was up 13.5% and conventional-conforming activity treaded water. (Includes two data tables.)
Interest rates on mortgages are elevated, suppressing demand. Short periods of declines in interest rates have prompted surges in loan applications. The question remains: When will interest rates do down?
Ongoing affordability issues and volatility in the financial markets combined to suppress purchase-mortgage lending in the first quarter. Meanwhile, refi volume was up nearly 50% from a year ago. (Includes four data tables.)