The warehouse sector is in a historic sweet spot: Nonbanks are making money hand-over-first, while accepting the tighter underwriting requirements placed on them. (Includes data charts.)
Traditional retail mortgage lending declined in the first quarter and correspondent production tanked. But the wholesale-broker sector, led by its flagship lender, posted a solid gain. (Includes six data charts.)
In the COVID-19 era, lenders have been hampered by credit tightening and forbearance edicts, but an odd thing has occurred: Profit margins on new loans are phenomenal.
FHA is sympathetic to the plight of its lenders during the coronavirus crisis but how far will it go on forbearance for loans in progress? No one knows, at least not yet.
UWM has rolled out an ambitious new program to fund a ton of conventional FRMs at 2.5%. Meanwhile, Fannie/Freddie borrowers have a new COVID-19 payment deferral option.
Loans eligible for sale to Fannie Mae and Freddie Mac or insured by FHA or VA accounted for a huge 86.1% of first-lien originations in early 2020. Both jumbo and expanded-credit mortgage lending fell sharply in the period. (Includes two data charts.)