The retail channel lost some ground across all three loan product categories. In the conventional-conforming market, the retail share went from 38.8% in the third quarter to 38.2% in the fourth quarter. (Includes two data tables.)
Two large nonbank retail lenders took losses in the fourth quarter, with officials stressing that better days are ahead. Guild is growing through M&A while loanDepot is reducing its staffing.
The Urban Institute, with funding from the National Fair Housing Alliance, has developed resources lenders can use to launch special purpose credit programs.
The National Association of Hispanic Real Estate Professionals called for more public policy to support Hispanic lending, including through special purpose credit programs.
Lenders look to remote online notarization; Ocrolus offers rep-and-warrant coverage for income calculations; ICE offers tool to facilitate reconsiderations of appraisals; Planet Home launches products to help borrowers compete with cash offers; property insurance costs rise nearly 20%; Flagstar plans tech accelerator program; disconnect on homebuyers’ plans and saving for a downpayment.
Banks and thrifts continued to report a decline in originations through their retail mortgage platforms in 2023. Cornerstone Capital Bank was the top bank retail mortgage lender in the fourth quarter.
In recent months, when interest rates have declined even slightly, loan applications have jumped, indicating that potential borrowers are keeping a close eye on interest rates. There could also be some relief on affordability as the inventory of homes for sale increased in February.
Lower-income households with mortgages have to make difficult budget choices to accommodate the resumption of student loan payments, new research showed. Overall, though, the payment restart is expected to have modest effects on mortgage performance.