Many of the top depository institutions reduced their production in the first quarter.

Freddie saw the bigger monthly increase in MBS output, up 9.4% from April. Business was up 6.3% at Fannie.

The Federal Reserve reported $445.78 billion of non-agency MBS outstanding at the end of March, up 2.6% from December.

The Mortgage Bankers Association quarterly performance report found similar, though somewhat bleaker, results.

Total 1-4 family mortgage servicing outstanding hit a record $14.027 trillion at the end of March. Nonbanks handled 50.2% of the total, compared to 49.6% as of the end of 2023.

Lenders delivered $27.21 billion of purchase loans into Ginnie MBS in May, up 7.5% from the prior month.

Banks and thrifts held $2.52 trillion of first liens in portfolio as of the end of March.

The big question, according to some of JPMorgan's warehouse competitors, is how many of Flagstar's customers will stay with the megabank.

The growth came largely from purchase-mortgage lending.

Among the top 10 ARM lenders in the January-March corridor, just one was a nonbank: Rocket Mortgage.