Overall, refinance business was down compared with the fourth quarter of 2025, though FHA refi volume increased by 6.1% due to FHA-to-FHA refi activity.

Delinquency rates on mortgages with debt-to-income ratios above 43% are only slightly higher than delinquency rates on mortgages overall, according to a new analysis by Moody’s Ratings.

“Get comfortable with reading the guidelines and understand what you want to be,” said Audrie Gregory, vice president of correspondent lending at Verus Mortgage Capital, a non-agency conduit.

Robert Johnson, head of originations at Newrez, said the process went much more smoothly than he expected.

The delinquency rate held steady on a monthly basis, at 3.35% as of the end of April, according to Intercontinental Exchange.

In all of 2025, refis accounted for 30.1% of originations.

“If [the GSEs] are going to distribute them into securities,” said Bose George, a managing director of Keefe, Bruyette & Woods, “I assume there’ll be some sort of pay-up for these loans, because people don’t know the performance yet.”

An increase in interest rates limits prepayments on existing mortgages, helping to boost the value of mortgage servicing rights.

Mike Weinbach was most recently president of Mr. Cooper Group, leaving the company shortly after it was acquired by Rocket Companies.