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.
Nonbank lenders discovered the non-agency jumbo market and helped drive production to a record $613 billion last year. The conforming-jumbo market fell sharply in the fourth quarter as lenders gamed the annual loan-limit adjustment. (Includes three data charts.)
The first quarter ends in a few weeks and so far no top-ranked lenders have announced plans to sell. Is it just a matter of time or is something else afoot?
Non-agency mortgages for investment properties are increasing thanks to volatility in GSE pricing and lenient underwriting standards. Volume could take a hit as interest rates increase.
Loan originators hurting for business as GSE refis decline should consider non-QMs, according to industry participants. Some major lenders are expecting non-agency lending to jump this year.
It should be a banner year for mergers and acquisitions in the residential finance space. Already, two deals have been announced, with more likely to follow.