Only 12 banks reported a loss from their mortgage-banking operations in the fourth quarter.

Although banks have been reducing their MSR holdings, the asset has increased in value thanks to rising rates.

The industry’s most profitable mortgage-banking business during the fourth quarter was operated by Truist Bank. Meanwhile, TD Bank reported a huge $911.2 million loss related to the sale of mortgage loans. (Includes data table.)

While banks’ servicing-for-others balance declined in the fourth quarter of 2024, the industry put a higher valuation on the asset. Top-ranked JPMorgan Chase and Wells Fargo continued to reduce their portfolios. (Includes data table.)

Borrower payoffs reflect heavy refinance activity in the Ginnie program.

Carrington, a Ginnie contractor that handles defaulted servicing for the agency, was listed as the recipient of some of these funds.

The FHA wasn’t spared from the Trump administration’s workforce reduction plan. Some industry observers fear the layoffs will slow underwriting times and delay closings.

Some $202.78 billion of loans were removed from Ginnie Mae MBS last year, with about 88% of them representing borrower payoffs. (Includes two data tables.)

Attorneys at the Bradley law firm suggested lender/servicers update their policies and procedures, such as internal audit and quality control, to preempt potential origination or servicing defects.

A borrower sued Navy Federal Credit Union for denying his mortgage refinancing application on the grounds that he had poor credit performance with the credit union.