“A dampened summer home-buying market weighed down PrimeLending’s operating results,” said Jeremy Ford, chairman, president and CEO of Hilltop Holdings, which owns the mortgage lender.

Investor demand is fueling issuance of MBS and ABS to record levels without declines in underwriting standards.

The firms have issued a number of expanded-credit mortgage-backed securities.

Popular, a bank based in Puerto Rico, stopped originating mortgages in the continental U.S. at the end of the third quarter.

The NAHB said its members agree that getting more homes built is essential, and the group is prepared to work with the administration to remove regulatory obstacles, ease material and labor shortages, and expand access to affordable financing to enable builders to construct more attainable, affordable housing.

“Someday hopefully the mortgage market will come back, and that will help us but ... we’re not counting on it,” said Rajinder Singh, chairman, president and CEO of BankUnited.

Many expect issuance of both expanded-credit MBS and securitizations of home equity loans in 2026 to top the volume seen this year.

The risk of growing budget deficits and elevated inflation expectations will keep longer term rates from falling further, MBA believes.

The Ohio-based bank had $43 million in mortgage-banking income in the third quarter, up 54% from the second quarter.

The prepayment rate on agency MBS reached the highest level in 11 months in September, with another increase expected in October.