Origination

The $1.3 trillion decline was the largest quarterly drop in dollar volume and the biggest falloff on a percentage basis since 2009, according to Black Knight.

The limit for high-cost areas for 2023, 50 percent above the baseline limit, would be approximately $1.08 million, writes a former principal economist with the Federal Housing Finance Agency.

The lender reported a 24% drop in volume quarter-over-quarter but said it compared favorably to the average 29% decline projected by the Mortgage Bankers Association.

But far more staff reductions will be needed to bring numbers back in line with the norm prior to the past two years' extraordinary housing boom.

The company is reporting both higher origination volume and net earnings on a quarter-to-quarter basis.

The company had benefited from the hot pandemic housing market until rising mortgage rates cooled demand, leaving it holding real estate that was worth less than its purchase price.

The company's volume fell behind its wholesale-focused chief competitor's in the third quarter but management foresees potential weakness in the broker channel.

Leaders of its parent company touted the success of subscription models and also made a case for its proposed merger with Black Knight in an earnings call

The most recent cuts bring the company's total headcount reduction to over 1,000 employees this year.

The lender and servicer had already reduced its funding capacity for originations by a combined $1.5 billion before its latest disclosure.