The non-agency jumbo share of total originations hit 15.8% in the second quarter. That’s the highest level since late 2022. Meanwhile, agency high-balance business was level compared with the first half of 2024. (Includes three data tables.)
The Fed cut the federal funds rate by 25 basis points this week and further cuts are expected. Even if interest rates on mortgages don’t come down much more, demand for loans is expected to increase.
The Trump administration is ramping up discussions regarding reforms to the government-sponsored enterprises but it’s still not clear what the result will be. Whether Congress will take action is also an open question.
loanDepot’s common now trades for almost $5.00 a share after being close to $1.00 for much of the year. Theories for the shift include factors specific to the company or signs that the industry is turning the corner.
The retail share of first-lien originations bounced back above 50% in the second quarter. Still, in the first half of the year, third-party originations increased at a faster pace on an annual basis than retail lending. (Includes six data tables.)
Many efforts started during the Biden administration won’t move forward. But servicing reforms are still in the works at the CFPB. And the bureau is considering major changes to LO comp.
There’s speculation that the Trump administration will direct the GSEs to increase purchases of agency MBS, potentially as part of a declaration of a housing emergency. The move could help reduce mortgage rates.
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