Originations

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

The sale of its correspondent business to Planet Home Lending, divestment in a reverse mortgage lender, Longbridge Financial, and the outsourcing of mortgage servicing rights all reinforce its focus on wholesale, company management said.

But growing worries about a possible recession may also end up playing a role in their direction over the coming weeks.

Its outlook is about $20 billion less than what the analyst consensus forecast had called for.

A 5% surge in purchase applications drove up overall activity, while average loan amounts also increased across all categories.

While longtime non-QM companies have originated mortgages in the segment for years, new contenders have come into the market as the number of potential customers who fit into the category grows.

Forecasting that it will not turn a profit in the 2022 fiscal year, the company plans to make job cuts, suspend dividends and introduce new products.

The company earned $453.3 million, inclusive of a $172 million increase in the fair value of its mortgage servicing rights, but future originations and revenue are expected to decline while it plans to continue challenging market rivals on pricing.

The offering touts closings in as few as 10 days and allows homebuyers to compete with deep-pocketed investors and iBuyers.

While the company improved on the prior quarter’s results, efficiency measures including layoffs failed to make up for less favorable secondary market conditions.