Originations

The company dialed back loan production activities at its call center and from mortgage brokers as interest rates continued to rise.

As recently as last week, the shuttered Cypress Mortgage Capital was marketing an offer for non-qualified mortgage loans.

After falling earlier in the month on expectations of less aggressive monetary policy, inflation concerns early in the week drove averages higher.

Truework, whose clientele includes several influential mortgage players, facilitates employment checks and aims to make gig-economy data accessible.

The REIT did not issue a securitization in the period because of the upheaval, but found a more receptive marketplace in July.

The lending and servicing giant is also amping up cost-saving efforts with more layoffs after reporting a net loss of $223.8 million in the second quarter.

But volumes are still at least 80% lower from a year ago, while mortgage applications overall came in flat.

The company is looking at the long-term picture, building business for 2023 and beyond, Chairman and CEO Mat Ishbia said.

Loan availability also took its steepest monthly dive since the first months of the coronavirus pandemic, with jumbo products falling off by more than 13%, according to the Mortgage Bankers Association.

About 64% of borrowers would like loans to be closed in three weeks, according to Arizent research.

While a growing share of consumers expect housing costs and interest rates to decrease over the coming year, uncertainty is also leading some to see it as an inopportune time for both purchasing and selling, Fannie Mae reported.

July marked the first month this occurred, suggesting that the small reversal in the upward trend of financing costs wasn't enough to change the downward trajectory in homebuyer activity.

Waning mortgage activity slashed net income 72% in the second quarter to $58.3 million.

The San Francisco-based company recently raised $14 million in Series A funding and closed more than $400 million in sales in the first quarter.

The company is withdrawing from consumer-direct lending and making other reductions given that widening spreads failed to offset savings from aggressive layoffs and gains in servicing advisory services.

More cost reduction is on the way in the third quarter, but management says it will not layoff staffers, despite having some excess capacity.

The 30-year average has declined by 55 basis points in two weeks.

The Tennessee-based originator is now a private-label retail group, which has branches in Alabama and Kentucky in addition to its home state.

Refinances inched up 2% as interest rates dipped, but accounted for only 31% of activity, compared to two-thirds a year ago.

But private-label securitization issuance this year is expected to be lower than 2021's activity.