Corporate finance

And it is quite likely that the lower gain on sale seen in initial Q2 bank earnings reports will read through to the large nonbank lenders, Keefe, Bruyette & Woods said.

The bank's allowance for losses on commercial real estate loans jumped to $3.6 billion in the second quarter — up 64% from a year earlier. The negative forecast could portend trouble for smaller banks that have bigger exposure to the office sector.

Guild Mortgage and Axia Home Loans shared their perspectives on how to ensure the health and prosperity of smaller shops at the MBA Secondary & Capital Markets Conference this week.

Following sales to Mr. Cooper and The Loan Store, the wholesale giant reported originations of $891.2 million between January and March.

Only one company, Doma, reported improved results from the year before, but it still took a large loss for the period.

Lenders used the firm's software in nearly a quarter of originations in the second half of last year, up from 14% over the same period in 2021.

On a non-GAAP basis, the company reported better results on a year-over-year basis, Chairman, President and CEO Mat Ishbia said.

The country's third-largest originator saw revenue tick up in the first quarter off of higher servicing income and more pull-through weighted rate lock volume from lower average interest rates, it said.

Both its servicing and origination segment were in the red in the first three months of the year, with the latter division reporting a net loss of $32.8 million.

The firm's reverse mortgage arm combined with the newly acquired American Advisors Group will make the parent company the largest player in that lending space, executives said.

Even with lower new insurance written, the six active underwriters remained profitable.

After a selloff toward the end of 2022 when it sought to reduce liquidity risk, the company resumed purchases of whole loans last quarter.

Management provided upbeat commentary both about the period and how the second quarter is progressing.

Earnings dipped for both companies coming in at $236 million and $328.2 million, respectively.

In a quarterly earnings call, CEO Michael Nierenberg said the company was evaluating options and would likely file forms for a new public company in the near future.

MSR marks weighed down results again but by less than in the previous quarter as the company worked on offsets and restated some adjusted numbers.

The government-sponsored enterprise improved slightly upon the previous quarter's numbers, but contraction in lending remains a risk.

Although the company reported a loss, executives expressed confidence in its funding and liquidity.

But the company's earnings were up due to lower loss provisions.

The neobank expects to turn a profit by the end of the year, but faces challenges as it copes with the government's pause on federal student loan repayment and with the difficulty of selling technology services to other businesses.