The GSEs have slowly been losing share in the servicing market since March 2022. In the second quarter of 2024, Ginnie Mae and the non-agency sector gained more servicing share. (Includes two data tables.)

More than a week after a Fed official outlined a planned re-proposal to adjust capital requirements for large banks, industry participants are still waiting for the formal document.

Borrower demand for home equity loans is expected to continue even as interest rates decline. Meanwhile, nonbank lenders are working to compete with depository institutions for the production.

Mortgage market participants are adjusting following the rate cut by the Federal Reserve.

“The real issue with housing is that we have had — and are on track to continue to have — not enough housing,” said Fed Chair Jerome Powell.

Originations of purchase mortgages are forecast to increase by 15% on an annual basis in 2025.

Khalil Kanaan, head of residential mortgage at LibreMax, an asset manager that has invested in home equity investments, said the products offer unlevered returns in the low double digits.

Loan applications are increasing as mortgage interest rates decline.

“These rules must be updated, and your efforts to stop regulators from doing so is unjustified and harmful,” Sens. Elizabeth Warren and Maxine Waters wrote in a letter to the Chamber of Commerce and the American Bankers Association.