SPS, which has been servicing residential loans since 1989, handles a portfolio of about $180 billion, largely of loans in non-agency mortgage-backed securities.

"Current sentiment reflects pent-up frustration with the overall lack of purchase affordability," said Doug Duncan, a senior vice president and chief economist at Fannie Mae.

Morgan Stanley and Chase are marketing prime non-agency MBS with loans eligible for sale to the GSEs.

Most of the increase in Freddie buybacks in the first quarter of this year came from loans that were securitized in 2023, which totaled $219.1 million and represented 65.8% of Freddie repurchases in early 2024.

Available home equity looks likely to suppress mortgage delinquencies.

“The Biden administration is committed to fostering innovation in the financial sector while ensuring that we protect consumers, investors, and our financial system from risks that new technologies pose,” said Nellie Liang, under secretary for domestic finance at the Treasury.

The reduction in costs helped lenders that maximize LPA maintain profitability while the industry as a whole experienced a negative 5.8% margin, according to findings from Freddie Mac.

Higher for longer persists.

DTI ratio was a factor in 38.45% of denials of applications for purchase mortgages in 2023.

“I want us to use it in a way that’s going to protect the company and protect the borrowers as well,” said Kiran Sahota, an executive vice president of technology at Freedom Mortgage.