Originations

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.

CEO Michael Nierenberg hinted at an upcoming partnership, as the rebranded New Residential reported a quarterly loss from residential mortgages plus management internalization costs.

Volumes set a record in 2021 and they've held up better than expected this year, but declines are forecasted for the sector some banks are using to partially offset single-family's slump.

Housing values remain historically healthy, but the year-over-year slowdown seen during the month was the most severe seen since at least the 1970s, according to a new Black Knight analysis.

LendingTree participants made 11 fixed-rate mortgage offers for every one ARM in the first half of 2022. Last year it was a 41-to-1 ratio.

At the same time, homes bought with FHA-backed loans accounted for the smallest share since 2007, according to an Attom sales report.

Net interest income was the driver, as increases from investments more than offset a decline related to its guaranty book of business.

The decline was driven by a $307M provision to cover potential credit losses, primarily from its single-family business.

Investors had largely factored in an anticipated increase in the federal funds rate, but latest GDP numbers could result in more volatility.

Average purchase sizes have also fallen by almost 11% after reaching a record high this spring.

With tight inventory and rising rates posing challenges to today's home buyers, mortgage lenders face a tricky environment for maintaining volumes. National Mortgage News chats with three of the top-ranked producers of 2022 to discuss strategies to stay competitive in the months ahead.