Volumes are down and lenders are racing to cut costs, but some of their approaches may not be the best for long-term success, a Stratmor analyst said. He suggested lenders update their LO comp structures.

New research shows that mandatory flood risk disclosure requirements raise home prices, increase loan sizes and raise debt-to-income ratios.

With Wells Fargo exiting the correspondent channel in the first quarter, no single lender filled the bank’s void. Still, the correspondent channel actually gained market share in the conventional-conforming sector. (Includes two data charts.)

Non-qualified mortgage lenders have an opportunity to gain market share in the wholesale channel as competition contracts.

An analysis of agency securitizations shows brokers gaining market share as their loan sizes increased faster than other channels. Credit scores improved somewhat but DTI and LTV ratios rose. Refis took a smaller slice of a shrinking pie. (Includes two data charts.)

Correspondent sales in 2022 declined by nearly 50%, in line with total originations. Among the top correspondent sellers, trends varied, based on an analysis of HMDA data. (Includes data chart.)

Profitability outlook; Fitch downgrades Home Point’s corporate ratings; UWM aims to limit trigger leads; New American Funding looking for joint ventures; new initiatives at MISMO.

The San Diego-based capital markets advisor’s white paper walks originators through the theory of pipeline hedging.

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.