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.

There are at least two Canadian banks actively soliciting nonbanks for warehouse lines of credit. The moves come with the hope that originations will improve in 2025.

The next step to revise capital requirements for large banks is undetermined, two mortgage efforts at the CFPB will fall to a Republican appointee and FHFA’s planned reforms for the FHLBanks face uncertainty.

Despite a lack of historical data on FICO 10 T, Urban Institute researchers find positive signs that the shift away from Classic FICO to VantageScore 4.0 and FICO 10 T will not dramatically impact loan performance.

The new year is underway but not all high-volume producers have signed contract renewals. Some headhunters are advising management not to drag their heels, lest they run the risk of losing their best asset.

There’s plenty of home equity available to homeowners but interest rates are constraining originations of home equity loans. Banks remained the top three originators of home equity loans in the third quarter. (Includes three data tables.)

The share of borrowers using discount points has more than doubled since 2020. The use of discount points is more common among nonbanks.

On the surface, the yield looks expensive for the issuer but in a rising interest rate environment, maybe it’s not.

Home purchases are expected to increase next year as demand continues to be strong and rates fall slightly.

As nonbanks go, so goes the warehouse lending sector. Commitment levels are rising but higher interest rates could cause some turbulence in the months ahead. (Includes data table.)