Rate locks jump; home prices decline for second consecutive month; the remote work factor; website will connect borrowers with brokers; new loan origination system promises “fun.”
The correspondent channel regained market share lost during the refi boom in the conventional-conforming sector. The retail channel remained the largest source of originations in the sector in the second quarter. (Includes two data charts.)
Loan sales to Fannie Mae, Freddie Mac and Ginnie Mae plummeted further in the second quarter as desperate lenders tried to boost volume by easing credit quality standards. (Includes one data chart.)
loanDepot cites faults in wholesale channel; rate locks decline in July; foreclosure activity also down; MISMO seeking comments on various initiatives.
Mortgage-banking origination volume and loan sales among commercial banks and savings institutions declined in the first quarter. The pipeline of future sales also contracted significantly from the fourth quarter. (Includes two data charts.)
The broker share of conventional-conforming mortgages declined on a sequential basis to 20.3% in the first quarter of this year, according to surveys of various lenders. (Includes two data charts.)
As retail and correspondent loan sales to the agencies fell by 20%, lenders became visibly less discerning about credit quality, with credit scores dropping and DTI/LTV ratios rising. (Includes two data charts.)
Some $920.73 billion of mortgages originated during 2021 were sold to unaffiliated non-agency buyers during the year, a 19.6% increase compared with 2020. Guaranteed Rate was the top correspondent seller. (Includes data chart.)
Correspondents and brokers took back some market share in 2021 that had been lost to the retail channel in 2020. In the conventional-conforming market, retail share held steady, while some volume shifted from correspondents to brokers. (Includes two data charts.)
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