CEO Scharf said GSE underwriting guidelines put Wells in a “difficult" position...

Wells Fargo is in the process of changing where residential loans fit into the bank’s overall business. The company’s CEO cited GSE mortgages as a product that presents risk to the bank.

The $315.2 million MBS includes a mix of commercial RE and residential investment properties.

Overall, the 21 shops reported a loss of $1.27 billion from mortgage production activities in 1Q22...

Interest rates on debt offerings by mortgage companies are on the rise.

Banks, combined, handled $3.15 trillion in mortgage servicing for others as of the end of March...

The rapid increase in interest rates seen in the first quarter took a big bite out of income from production and helped to goose servicing earnings. And while a downturn in originations was expected this year, it could be worse than expected.

The ratio measuring the fair value of banks’ mortgage servicing rights compared with their servicing for others hit a post-2008 high as of the end of March thanks to the spike in interest rates.

Usage of Freddie Mac’s Loan Prospector is largely confined to mortgages that will be delivered to the GSEs while usage of Fannie Mae’s Desktop Underwriter is more widespread in the mortgage market.

Higher interest rates didn’t have much of an impact on home price appreciation in March; Freddie Mac launched new automated underwriting capabilities; Fitch shifts its outlook for ratings of Finance of America Companies to negative; MISMO remains busy.