Retail lending by depository institutions' mortgage-banking operations fell in the third quarter, but a major acquisition by one bank pushed other indicators higher.
Mortgage banking income appeared to benefit from both rising gains on sale and stronger net servicing income. The top three banks reported lower earnings from mortgage banking.
Black Knight increased its earnings in the third quarter of 2021 compared with the prior quarter while Blend Labs took a loss after earning a small profit in the second quarter.
Lenders and servicers don’t see much use in blockchain technology for now; Mat Ishbia abruptly terminated a stock offering involving United Wholesale Mortgage; federal banking regulators set computer-security disclosure requirements; nCino to acquire SimpleNexus.
Most nonbanks reported significantly higher earnings from mortgage banking during the third quarter as gain-on-sale margins improved and MSR write-downs were less severe. (Includes data chart.)
Lenders are at the mercy of United Wholesale Mortgage’s pricing decisions, according to UWM’s president and CEO; Finance of America is seeing better returns from reverse mortgage lending than from traditional mortgages; the IRS released guidance on the Homeowner Assistance Fund.
Many companies reported declining production volume offset by stronger gain-on-sale margins. But servicing income strengthened as MSR values improved. (Includes data chart.)
Banks reported a 10% drop in retail originations through their mortgage banking operations in the second quarter. Loan sales also declined and likely continued to in the third quarter. (Includes two data charts.)
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