Rocket Mortgage is leaning on artificial intelligence to improve lending efficiency. The nonbank is wrapping up its acquisition of Mr. Cooper and already seeing benefits from its acquisition of Redfin.
Mortgage rates aren’t expected to move down much even if the Fed cuts interest rates next month; GSE economists slash projections for home price appreciation; ICE integrates origination and servicing platforms to originate home equity loans; majority of homeowners feeling financially stressed.
Although mortgage production and loan sales fell in the first quarter of 2025, banks and thrifts saw a significant increase in income from mortgage-banking operations. (Includes two data tables.)
Mortgage-banking income at banks increased by 65.6% on a sequential basis in the first quarter. Losses were rare among 358 banks reporting mortgage activity in call reports, though Bank of America took a hit. (Includes data table.)
Nonbanks reported a huge decline in servicing income during the first quarter, on the heels of a bonanza driven by MSR markups in the prior period. Meanwhile, gain-on-sale revenue fell as loan production volume declined sharply. (Includes data table.)
Many banks reported sharp declines in mortgage originations — and income derived from it — in the first quarter of 2025. But gains from MSR hedging activity made up for the decline in production. (Includes data table.)
The nonbanks took negative marks on their large holdings of mortgage servicing rights as hedges didn’t fully offset a decline in interest rates on mortgages during the first quarter.
Amerant Bank launched national mortgage operations in 2021. Now, the bank is reducing its footprint, focusing on lending in Florida where its bank branches are located.
Waterstone Financial relents on defense against poaching allegations; Mr. Cooper takes loss on sale of Flagstar’s third-party originations unit; legal expenses rise at Mr. Cooper.
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