While new production volume was generally sluggish in the first quarter of this year, several banks reported higher gain-on-sale margins and better MSR hedging results. (Includes data table.)
Most nonbanks reported bigger gains in lending volume in the fourth quarter of 2025 than in production income. MSR valuations continued to drive servicing income lower. (Includes data table.)
The lender’s gain-on-sale margin increased from 1.14% in the third quarter to 1.50% in the fourth quarter, with a rise in originations to boot. Leaders at the company cautioned that some lenders are gaining market share at the expense of earnings.
When excluding a one-time jump in Capital One’s earnings, mortgage-banking earnings at banks and thrifts declined by 2.9% during the fourth quarter of 2025. Still, earnings for the full year improved compared with 2024. (Includes data table.)
Onity takes $120.0 million deferred tax asset valuation allowance; income/employment defects rise; Sagent launches servicing platform; AI company rescinds link to Intercontinental Exchange.
Nearly all publicly traded banks reported declining income from mortgage banking in the fourth quarter of 2025. But most of them saw an increase in earnings for the full year. (Includes data table.)
The parent companies of Planet Home Lending and United Wholesale Mortgage were hit with rating moves by Fitch Ratings, which cited an increase in corporate leverage at the companies.
Banks and thrifts had a combined $2.49 billion of mortgage-banking income in the third quarter. Western Alliance Bank stood out, more than doubling its earnings from the second quarter. (Includes data table.)
Leaders at the three major credit bureaus, which own VantageScore, expect to see strong revenues and profits as the GSEs allow VantageScore to compete with FICO.
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