As retail and correspondent loan sales to the agencies fell by 20%, lenders became visibly less discerning about credit quality, with credit scores dropping and DTI/LTV ratios rising. (Includes two data charts.)

Rising interest rates helped to push up income tied to mortgage servicing rights more than they reduced income from originations among a group of publicly-traded nonbanks. Results varied to some extent, with one large mortgage company even taking a loss in the quarter. (Includes data chart.)

If projections by the MBA are correct, interest rates for mortgages are levelling off, which should relieve some of the pressure lenders are facing on originations and profit margins.

It’s no secret that mortgage bankers and brokers are cutting workers as lending ebbs in a much higher rate environment. But with the exception of Better.com, the layoffs have not been huge. Yet.

A growing sector in home financing involves power buyers, who with all-cash offer guarantees help homebuyers compete against investors.

A Fannie Mae survey of lenders found almost all hope the appraisal process will enter the 21st Century, but most would first invest in digital loan application systems or e-mortgages.

Despite a flurry of recent programs and proposals to address the racial gaps in wealth and homeownership, speakers at a Federal Reserve webinar said more urgency is needed.

Chairman Mat Ishbia suggests those calling for cost reductions and layoffs at United Wholesale Mortgage don’t understand the lender; impact of Biden administration’s housing plan expected to be “limited;” mortgage costs soaring.

Owning mortgage servicing rights proved to be a great counter-hedge to an ugly origination market in the first quarter. At least two nonbanks benefited: Mr. Cooper and New Residential Investment.

Delinquency rates declined across the board at Fannie Mae, Freddie Mac and Ginnie Mae in the first quarter of 2022. The only category of loans to report higher defaults was FHA loans 120 days past due. (Includes data chart.)