Secondary

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.

Bond traders boosted bets that the Federal Reserve may re-accelerate the pace of rate increases at the policy meeting later this month.

The new special purpose credit program is part of efforts to reduce the racial gap in homeownership and offers assistance to borrowers who meet certain income and location requirements.

Even with the government-sponsored enterprise's statement that full appraisals are no longer required to prove value, industry participants say they will remain a tool for lenders to use when needed.

Lenders have focused on front-end cost differences since key secondary market players opened up the option, but what happens when a problem emerges down the road is worth weighing too.