The industry’s pipeline of loans held for sale was also reduced in the first quarter.

Pennymac was the largest correspondent lender in the conventional market in the first quarter, according to a new Inside Mortgage Trends ranking and analysis.

Mortgage originations declined across the three major production channels in the first quarter of 2026. Pennymac reported a 32.8% drop in conventional-conforming volume through correspondents. (Includes two data tables.)

JPMorgan Chase remained by far the most prominent seller, with $23.05 billion in volume during the first quarter. (Includes two data tables.)

Eight of the top 10 banks reduced their portfolios on a quarterly basis.

Purchase-mortgage volume declined 14.3% on a sequential basis, while refinances were up 8.0%. The rise was propelled by FHA refis, which grew 6.2% from the fourth quarter to $24.06 billion.

The volume of loans with primary insurance coverage flowing into agency mortgage-backed securities declined during the first quarter of 2026. FHA refinances in agency MBS issuance were up 8.0%. (Includes two data tables.)

Banks and thrifts decreased the amount of mortgage servicing they handle for other entities in the first quarter. Meanwhile, valuations for the servicing asset increased for the third straight quarter. (Includes data table.)

Denial rates declined slightly last year even as more applicants flocked to get a mortgage. (Includes data table.)

Lenders turned down 22.0% of applications received for FHA loans in 2025. The rejection rate on VA mortgages was a more modest 16.1%. (Includes data table.)