Holdings of first-lien mortgages at commercial banks and savings institutions increased just 0.3% from the end of the third quarter to the fourth. All of the increase was driven by a 14.6% jump in holding of adjustable-rate mortgages. (Includes data table.)

Holdings of first-lien residential mortgages at banks and thrifts slightly increased by 0.4% during the third quarter of 2025. But two of the four largest players in the market reduced their holdings.

Banks and thrifts increased their holdings of first-lien mortgages by 0.7% during the second quarter of 2025 compared to the end of March. (Includes data table.)

Banks and thrifts have largely added to their overall holdings of residential first liens each quarter dating back to 2021. The decline seen in the first quarter of 2025 included a sharp drop in ARMs. (Includes data table.)

Debt service coverage ratio mortgages, residential transition loans and other alternative products include some unique features that can’t necessarily be handled well by servicing systems for standard residential mortgages.

The company recently received pre-seed funding to launch a stablecoin, $USH, that will be pegged to its portfolio of home equity investments.

While first-lien mortgage holdings at banks grew only slightly during the fourth quarter, the mix included more adjustable-rate mortgages than in recent quarters. (Includes data table.)

The firm has been restructuring its portfolio since 2022 with the goal of producing “durable” earnings.

After explosive growth in the second quarter, originations of adjustable-rate mortgages failed to keep pace with overall originations. (Includes data table.)

Even with shrinking holdings at the three largest depositories, bank and thrift holdings of first-lien mortgages ticked up during the third quarter. (Includes data table.