Banco Popular de Puerto Rico

Some lenders and their parent companies are reconsidering their loan-channel mix and business lines as refinance volumes fall and margins shrink; others are doubling down.

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.

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

Both bank and nonbanks are starting in — or returning to — this segment as they look to make up for declining originations. But there are a few key issues to consider before taking on the new line of business.

Additionally: FHFA adds reporting mandate for servicers and more layoffs are announced.

First American, Old Republic and Stewart did better compared to the first quarter, but all are down year-over-year, and Doma sank deeper into the red.

Automating rent-based underwriting for single-family loans and offering incentives for multifamily borrowers who accept housing vouchers are just two ways Fannie Mae and Freddie Mac are tackling the challenge of equitable housing.

Listing inventory is returning to levels not seen since before the pandemic, but building material shortages and supply chain issues continue to have an impact on new construction.

Also, SWBC lands two new chief officers, Angel Oak ups its correspondent business team and Movement Mortgage taps industry vets for newly created roles.

AI, ML, predictive analytics and complex algorithms can help lenders expand credit to more consumers, but some critics feel the technology can feed into existing discrimination and bias that applicants face.