Secondary

Institutions can borrow against par-valued securities that they would otherwise have to sell at a loss when there's a run on deposits, and it could have effectiveness beyond its actual usage.

The technology provider is in the midst of a large reduction in spending including the dismissal of approximately 340 employees.

In its last full quarter using a mortgage banker business model, the company originated just $21.5 million, well down from $759.4 million one year prior.

The new fees based on the DTI, which lenders have said is too likely to vary throughout the origination process for a single loan, will now go into effect in August.

The company sold off several segments of its business last year and also completed four securitizations of reverse mortgage loans as it fully commits to the 'retirement home-equity market.'

Mortgage-backed securities aren't generally considered risky assets, but how SVB managed them contributed to its woes.

Despite ending 2022 in the red, the lender and servicer saw full-year profits exceed 2021's total.

The REIT failed to post profits in any quarter last year, as the mortgage industry encountered a steep originations slowdown.

The company lost $163.7 million last year as funded origination volume fell 71% annually to $27.6 billion in 2022.

Executives at the company pointed to market volatility, year-end seasonality and its exit from the wholesale channel as reasons for the deficit.