Only $89 billion of the $362 billion in new single-family volume came from purchase mortgages.

Despite falling from quarter to quarter, Flagstar’s mortgage revenues remained strong, while its servicing portfolio grew.

Although the company’s revenue and incomes spiked from year-ago levels, most benchmarks showed a decline from the fourth quarter.

First quarter volume was up 3% among eight depositories that reported so far, compared with models that predicted industry-wide drops as large as 13%.

The company expects loan growth in the “mid-teens” this year, despite concerns that a housing supply crunch could stymie new mortgage originations. “As soon as COVID fades into the background we'll pick up volume,” CEO and Chairman Jim Herbert said.

The REIT is planning its own stock sale to pay for the all-cash purchase from Lone Star Funds.

However, companies were largely unable to use that cash infusion to make investments that lower their costs, since they had to pay out more in compensation.

With independent title companies scoring the largest market share gain last year, the sector saw a 22% increase in premiums overall, the American Land Title Association said.

Banks can mitigate damage from slowing origination activity by putting excess cash to work, Keefe, Bruyette & Woods said.

The forward and reverse mortgage lender completed its merger with blank check company Replay Acquisition Corp. on April 1.