Although margins are better in retail production, third-party origination platforms are good sources for purchase-mortgage business and more easily scaled to market demand. (Includes two data charts.)
The mortgage market is losing some capacity as Impac Mortgage and Finance of America move away from traditional production. The moves follow steep losses at the companies in recent years.
Failed banks and interest rate risk; DOJ-Sterling Bank settlement; big banks boost First Republic; ICE to fight FTC over Black Knight deal; FHFA delays DTI fee; Guaranteed Rate offering fast approvals.
Agency securitizations of retail mortgages shrank by 36.7% in the fourth quarter as the share of refinances fell to 18.2%. Loan quality deteriorated slightly while average loan sizes continued to shrink. (Includes two data charts.)
NYCB closes Flagstar’s non-bank branches; FHA offers new incentives for servicers; home prices decline again in November; MBA writes to FHFA on the cost of doing business with the GSEs; new products aimed at newly-constructed homes; MISMO offers loan limit tool.
Officials at the bank suggest Wells won’t take much of a hit from the loss of correspondent production. And profitability on the servicing side is expected to improve as the portfolio shrinks.
The retail channel led the decline in originations of conventional-conforming mortgages in the third quarter. And third-party originators managed to slightly increase their activity in the government-insured market. (Includes two data charts.)
Banks and thrifts reported significant declines in loan origination volume and loan sales during the third quarter. Even their loan pipelines contracted drastically. (Includes two data charts.)
It's a tough origination market, that's for sure. But when times are tough, opportunities can present themselves. Is now a time to buy retail branches from shops that are struggling? If the price is right, yes.
RSS