The effects on nonbanks will depend on the mix between their production and servicing operations, Fitch Ratings said.

The government-sponsored enterprises will start releasing information similar to what large banks already do, starting in the first quarter of 2023.

Revenue was also slashed by lower per-employee productivity and slipping application pull-through.

First quarter gain-on-sale at nine originators tracked by Keefe, Bruyette & Woods averaged 149 basis points, much higher than the 5 bps recorded for independent mortgage bankers tracked by the MBA.

But the REIT, which invests in mortgages that have to be verified through nontraditional means like bank statements, has seen an improvement in its outlook since the first quarter.

Higher rates and tight margins are affecting its non-QM and conforming businesses.

Only Stewart reported a quarter-to-quarter increase in net income, while upstart Doma is reducing headcount by 15%.

The sale of its correspondent business to Planet Home Lending, divestment in a reverse mortgage lender, Longbridge Financial, and the outsourcing of mortgage servicing rights all reinforce its focus on wholesale, company management said.

Its outlook is about $20 billion less than what the analyst consensus forecast had called for.

Forecasting that it will not turn a profit in the 2022 fiscal year, the company plans to make job cuts, suspend dividends and introduce new products.

The company earned $453.3 million, inclusive of a $172 million increase in the fair value of its mortgage servicing rights, but future originations and revenue are expected to decline while it plans to continue challenging market rivals on pricing.

While the company improved on the prior quarter’s results, efficiency measures including layoffs failed to make up for less favorable secondary market conditions.

New insurance written during the first quarter slipped by 20% from the prior three months and by 30% year-over-year, yet five companies had higher income than in the fourth quarter and all six earned more money than in the first quarter 2021.

But company officials warned slimmer margins and a slowing market would lead to staff reductions.

The servicing segment's pretax income was almost 80% higher than the fourth quarter, offsetting a more than 90% decline for the production business.

Home sales usually pick up in the spring, but Zillow's outlook indicates that higher mortgage rates and low inventory of for-sale homes will finally slow activity.

The market is discounting the acquisition target’s stock price, largely over antitrust considerations, but execs dismissed the concern, and analysts said ways around it exist.

The move supports strong gains coming in from this side of the business, which helped the company return to profitability in the third quarter.

While first-quarter profits were up considerably, CEO Michael Nierenberg said the company will offer more products to counter market conditions that are “only going to get worse.”

The transaction is expected to keep revenues flat at the company at a time when mortgage origination volume is shrinking.