Homebuilders with lending units continue to prop up home sales by offering mortgage buydowns. The tactic cuts into homebuilders’ margins but many company officials prefer lower margins rather than unsold inventory.

Retaining servicing rights on production can provide originators a profit opportunity, if they are able to manage the business effectively.

Servicing executives said enhanced data have helped homeowners avoid foreclosure and kept overall losses down for investors.

Northpointe Bank could raise upwards of $200 million via an initial public offering. The bank said the IPO could help to double its warehouse lending business and increase production of a unique non-agency mortgage.

While electronic closings offer faster turn times, adoption of the technology comes with some complications. Still, the share of eNotes is expected to triple by 2028.

Additional inventory is expected to hit the market next year but homebuyers are expected to continue to face affordability issues.

With originations and loan sales rising across the industry in the third quarter, most companies booked income gains from those activities. Servicing, however, was a different matter. (Includes data tables.)

JPMorgan Chase reported a $44 million increase in mortgage-banking income during the third quarter of 2024. Twenty-five other publicly traded banks boosted their combined mortgage banking earnings by $13 million. (Includes data table.)

Investments in technology are helping Mr. Cooper reduce its servicing costs and allowing the industry’s largest servicer to place competitive bids on servicing portfolios.

Outsourcing mortgage fulfillment services could be a cost-effective way for originators to increase volume without significantly adding staff.