The recent IPO of nonprime lender Velocity Financial should pave the way for other like-minded deals. Right? But not so fast. The stock market can be an unforgiving place.

Fannie Mae, Freddie Mac and Ginnie Mae securitized $819 billion of insured loans in 2019, up 20% from the previous year. Insured agency refi business soared by 120% from 2018.

Some of the largest home lenders reported fourth-quarter results this week and the writing is on the wall: Home lending in the final three months of the year may have eclipsed a very good third quarter.