The Charlotte-based regional reported residential mortgage income of $221.0 million compared to $341.0 million in 2Q20. The reason: a large markdown on the value of its servicing portfolio.
While the supply of VA loans in Ginnie MBS continued to grow during the third quarter, the volume of securitized FHA forward mortgages fell 2.7% from the end of June.
However, compared to Bank of America, Wells looked like a rock star. BofA produced just $13.4 billion of residential loans in the July-to-September period, an ugly 42.4% drop from the second quarter...
This morning, on the heels of JPM’s results, nonbank United Wholesale Mortgage, reported third quarter originations of $54.2 billion, a sequential gain of 31.8%. UWM also disclosed period earnings of $1.5 billion, a record for the soon-to-be-public company.
The reason for the decline: Many borrowers saw their forbearance plans expire because they did not contact their servicer. At least, that’s what MBA concluded.
The overall number of loans declined as borrowers whose loans were not in forbearance took advantage of low interest rates to refinance. Ultimately, Fannie’s net forbearance rate only declined about 1.0% in June, WFS said.
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