Several community banks noted an uptick in problem loans in second-quarter earnings reports. Small lenders should brace for more of this, industry observers noted.

The Wall Street giant has more than $14 billion of real estate investments, and it took a $1.15 billion hit during the second quarter from writedowns of those bets.

And it is quite likely that the lower gain on sale seen in initial Q2 bank earnings reports will read through to the large nonbank lenders, Keefe, Bruyette & Woods said.

The bank's allowance for losses on commercial real estate loans jumped to $3.6 billion in the second quarter — up 64% from a year earlier. The negative forecast could portend trouble for smaller banks that have bigger exposure to the office sector.

Guild Mortgage and Axia Home Loans shared their perspectives on how to ensure the health and prosperity of smaller shops at the MBA Secondary & Capital Markets Conference this week.

Following sales to Mr. Cooper and The Loan Store, the wholesale giant reported originations of $891.2 million between January and March.

Only one company, Doma, reported improved results from the year before, but it still took a large loss for the period.

Lenders used the firm's software in nearly a quarter of originations in the second half of last year, up from 14% over the same period in 2021.

On a non-GAAP basis, the company reported better results on a year-over-year basis, Chairman, President and CEO Mat Ishbia said.

The country's third-largest originator saw revenue tick up in the first quarter off of higher servicing income and more pull-through weighted rate lock volume from lower average interest rates, it said.