Profitability outlook; Fitch downgrades Home Point’s corporate ratings; UWM aims to limit trigger leads; New American Funding looking for joint ventures; new initiatives at MISMO.

The San Diego-based capital markets advisor’s white paper walks originators through the theory of pipeline hedging.

A diverse group of bank and nonbank lenders eked out a modest $375 million in originations and secondary marketing income during the fourth quarter, down 67% from the prior period. The MBA said only one in four lenders turned a profit in the final three months of 2022. (Includes data chart.)

Sale chatter has been following Home Point and its MSRs for several months now but with no deal in hand. Still, a resolution could be moving closer.

Three regional banks failed recently due partly to interest-rate risk. To avoid the same fate, mortgage companies of all stripes are being pushed to give up some profits to manage interest-rate risk.

Nonbanks are using short-term warehouse funding to their advantage, ramping up capacity when needed and quickly reducing intake when originations dip, an analysis of nonbanks’ financial statements shows.

FHFA economists suggest originators may have better pricing technology than Fannie and Freddie.

The mortgage market is losing some capacity as Impac Mortgage and Finance of America move away from traditional production. The moves follow steep losses at the companies in recent years.

It’s not a good time to be looking for work in the residential finance industry. However, the recent bank liquidity crisis caused interest rates to fall, which could improve the production outlook.

Failed banks and interest rate risk; DOJ-Sterling Bank settlement; big banks boost First Republic; ICE to fight FTC over Black Knight deal; FHFA delays DTI fee; Guaranteed Rate offering fast approvals.