A report by Fitch Ratings forecasts a sharp drop in originations and declining GOS margins that will put pressure on earnings for smaller nonbank lenders.

Loan officers’ commissions decreased 17% year-over-year during the third quarter, driven by a hefty 37% drop in refinance commissions.

Almost across the board, origination profitability improved in the July-September period, but some lenders remain nervous and a shake-up could be coming as 2022 approaches.

Community Reinvestment Act requirements that traditionally have only applied to depositories will be imposed on nonbanks in New York. The MBA warned that the standards are “unworkable.”

Additional nonbanks could tap the debt market in the months ahead. The reason: rising asset valuations on mortgage servicing portfolios.

The thirst for mortgage servicing rights continues, be it bulk or flow. Meanwhile, Zillow’s foray into fix-and-flip did not end well.

While agency market trends weakened in the third quarter, non-agency production likely continued to gain share. Rocket Mortgage, PennyMac and United Wholesale Mortgage remained the top producers, but several banks reported strong quarterly gains. (Includes two data charts.)

Mortgage industry stakeholders are on the same page with affordable housing and minority rights groups, at least when it comes to the FHFA’s proposal to require Fannie and Freddie to have concrete plans to improve equity in mortgage lending.

CRA trade-offs and nonbanks: Let’s make a deal? Maybe, maybe not. Meanwhile, investors are still willing to sink cash into good mortgage ideas.

The flexibility and innovation shown by mortgage lenders during the pandemic should be incorporated into everyday practices, according to panelists at the Mortgage Bankers Association’s annual convention.