The two REITs have seen success even as profits from mortgage lending decline thanks to diversification efforts involving business-purpose lending and venture capital investments.
The mortgage origination “correction” has arrived, with some shops pondering their options. As one dealmaker put it, “Many lenders will need to find a safe port in the storm.”
When the going gets tough in mortgages, the tough retire. Then again, they can afford to, having made so much money the past two years. But who might replace all those graying CEOs?
A year of transition? Tough times require action on the part of mortgage CEOs. Some shops are adding new products and branch networks. Others are pulling the layoff lever.