Banks are reducing their appetite for mortgages, providing opportunities for nonbanks to boost their investment in the mortgage market. Redwood Trust looks to be leading the way in terms of bank partnerships.

Losses on conduit commercial MBS declined by 25% on an annual basis in 2023. However, loss severities remained elevated and delinquencies are rising.

Santander Consumer USA is a long-time issuer of auto ABS, but its affiliated Santander Bank only started originating auto loans in recent years. And to this point, the bank has issued only CRT with auto loans.

Originations of home equity loans declined in the fourth quarter as interest rates increased. Though HELOCs still dominate home equity production, closed-end second liens gained share in 2023. (Includes three data tables.)

The National Association of Realtors’ recent settlement could prompt a decline in the commission of a homebuyer’s real estate agent. The change could put pressure on both homebuyers and lenders.

Employee count increased at United Wholesale Mortgage in 2023, while at Rocket Companies it was down 20.5% on an annual basis. (Includes data table.)

"There are likely several more challenging quarters ahead for mortgage companies," said Eric Orenstein, a senior director at Fitch Ratings.

The Fed plans to reduce the speed of the runoff of Treasuries and MBS from its balance sheet "fairly soon," according to Fed Chair Jerome Powell.

The increase was driven by refinances, particularly VA refis.

Starts of single-family homes increased in February and are projected to remain high.