Most nonbanks reported bigger gains in lending volume in the fourth quarter of 2025 than in production income. MSR valuations continued to drive servicing income lower. (Includes data table.)

The lender’s gain-on-sale margin increased from 1.14% in the third quarter to 1.50% in the fourth quarter, with a rise in originations to boot. Leaders at the company cautioned that some lenders are gaining market share at the expense of earnings.

Servicers are concerned that unanticipated payment shocks tied to insurance and taxes may lead to an increase in delinquencies.