Santander stopped originating mortgages in the U.S. almost a year ago, then outsourced the function to Rocket...

The delinquency rate on loans in agency MBS increased gradually between March and September, then spiked during the fourth quarter. (Includes data chart.)

Officials at the bank suggest Wells won’t take much of a hit from the loss of correspondent production. And profitability on the servicing side is expected to improve as the portfolio shrinks.

Rocket is known for refis. Demand for refis is limited due to rising interest rates. So Rocket is taking steps to boost originations of purchase mortgages.

GSEs revise loan-level pricing adjustments; FHFA cuts UMBS comingling fee; UWM gives brokers pricing flexibility; foreclosures more than double; loanDepot to use Black Knight’s loan origination system; Lower offers white-label mortgage platform; Blend continues right-sizing.

Spreads on auto ABS issuance are tightening and issuers are upsizing deals amid strong demand.

Standards involving delinquencies and in-person audits of issuers will remain on hold through at least the end of June.

While agency MBS trading typically slows towards the end of the year, the average daily volume of trades in December 2022 was the lowest on record since the beginning of 2020. Banks are showing weak demand for the securities.

The FHFA will significantly reduce a controversial fee for comingled securities in UMBS; no consistent trend in delinquencies and losses across MBS and ABS in December; term SOFR not an option as GSEs leave LIBOR behind.

The CFO noted that Rocket sells some of its MSRs, but it’s mostly servicing on loans originated through brokers...