Originations

An inflation metric came in lower than expected, which caused the benchmark 10-year Treasury to drop well below the 4% mark.

But its tight lead indicates that originators are struggling to differentiate themselves from the competition J.D. Power's Craig Martin said.

Former employees say the New Jersey-based lender had its biggest reduction round yet, impacting close to a thousand positions.

But executives put a sunny spin on it, saying that its recent exit from forward mortgages will allow it to leverage reverse lending, where tailwinds will lead to profitability next year, management said.

The company has incurred a combined $91.8 million in expenses in the past two quarters related to its massive cost-cutting plan, which included the layoff of thousands of professionals.

But refinances dwindled further and helped drive overall volumes to a slight decline last week.

The government-sponsored enterprise put more money aside as mortgage interest rates rise and home prices start to decline.

The six active underwriters wrote 14% less business compared with the second quarter and 30% from one year prior.

Both lenders did not disclose how many positions have been terminated.

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 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'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.

Following the latest Federal Reserve boost in short-term rates, industry and other observers are anticipating more volatility to affect home loan financing.

The share of borrowers who owe no more than half of the property's market value increased to 48.5% last quarter, according to Attom, a real estate data firm.

A typical entry-level purchaser was 36 this year, three years older than in 2021, data from the National Association of Realtors released Thursday showed.