The rise in interest rates during the third quarter limited originations and put pressure on profitability. The value of mortgage servicing rights increases as interest rates go up, but that wasn’t enough to offset declining production revenue at many banks. (Incldues one data table.)

Companies are starting to reduce overhead costs through the use of AI in servicing and originations.

Uncertainty regarding the performance of VantageScore 4.0 and FICO 10T compared with Classic FICO is prompting mortgage investors to penalize mortgages underwritten with new scoring models.