Borrowers cited “best interest rate” as the reason they went with a particular lender in only 2.0 percent of purchase-mortgage transactions and 6.0 percent of refinances.

“After carefully evaluating market conditions and consumer needs, we are reducing to better align with current volumes,” Wells said.

Originations of expanded-credit mortgages failed to keep pace with total first-lien originations in the second quarter, according to a new ranking and analysis by Inside Nonconforming Markets. An estimated $11.40 billion of expanded-credit mortgages were originated in the second quarter, a 12.9 percent increase from the previous quarter. Total first-lien production increased by 17.1 percent during that time, according to Inside Mortgage Finance. Expanded ... [Includes one data chart]

Aggregators of jumbo mortgages have seen margins on their business decline as competition increases for the loans. Redwood Trust had $9.0 million in net income from its residential mortgage banking segment in the second quarter of 2018, down from $21.0 million in the previous period. Officials said the decline was due to lower margins during the second quarter. The real estate investment trust didn’t disclose specific figures other than to note that during the second quarter ...

The residential mortgage market took an unusual turn in the second quarter as retail production gained ground under conditions that generally favor third-party channels. [Includes four charts.]

The Internal Revenue Service published a proposed rule this month to help determine who’s eligible for a new 20.0 percent tax deduction for pass-through entities. Lenders that retain their production in portfolio look to be eligible for the deduction but there’s uncertainty about businesses that originate and sell loans.

Despite stiff headwinds, first-time homebuyers still play a key role in the mortgage market and that’s not expected to change anytime soon, according to industry insiders.

Quicken Loans this month lost one of its biggest broker-partners, C2 Financial Corp., laying the blame on BRAWL, United Wholesale Mortgage and UWM’s CEO Mat Ishbia.

Celebrity Financial, launched earlier this year by industry veteran David Robnett, has closed on its purchase of Midwest Equity Mortgage – its second mortgage deal of the year – but it is far from done as a buyer.

With refinance business drying up, more lenders and loan aggregators are entering the expanded-credit market, launching non-qualified mortgage programs and other products.