Originations

Meanwhile, investors await word from the central bank regarding monetary policy, as limited housing supply continues to drive prices upward.

Lower rates and higher home prices will boost dollar volume although few home sales will cut into purchase volume growth.

But average loan sizes remain near record highs, with summer purchases of new constructions continuing to drive up prices.

The wholesale lender has a cost structure aimed at beating the competition in a rising rate environment, Chairman and CEO Mat Ishbia said on the second quarter earnings call.

The share of home sales that were competitive remained above year-ago levels in July, but only by a few percentage points.

Depressed margins and a $219 million hit to its servicing rights fair value translated to a lower bottom line at the wholesaler.

Also: Rocket announces expansion and Ginnie Mae extends comment period on nonbank capital plan

Originations of loans to the self-employed and other outside-the-box borrowers had better margins than mainstream mortgages in the second quarter, but rebuilding after the niche market’s temporary disruption last year generated significant expenses.

But median prices still rose 17% year-over-year, the company found.

Second quarter open orders were 37% higher than one year prior, while closed orders grew by 43%.

While the company's mortgage originations saw a 46% annual drop in gain on sale margin, it anticipates that annual volumes will exceed 2020 levels.

The Department of Housing and Urban Development and Federal Housing Finance Agency, which supervises Fannie Mae and Freddie Mac, formed a pact to share information and coordinate investigations of potential fair-lending violations.

The companies are investing more in government-insured equity withdrawal products for borrowers ages 62 and up, which offer higher returns.

Shrinking gain-on-sale margins also ate into earnings, with growth expected to slow for the rest of 2021.

A jump in jumbo loan programs was countered by lenders dropping high loan-to-value conforming products.

The average was up from 2.77% last week and the highest since July 15, Freddie Mac said Thursday.

The median price of an existing single-family home jumped 23% from a year earlier to an all-time high of $357,900, the National Association of Realtors said in a report Thursday.

The company attributed its second quarter loss to competitive pricing pressures and GSE-imposed charges.

Total investment property lending this year should be 31% above 2020's pandemic-affected activity.

Rocket Mortgage is offering $2,500 in lender credits to homebuyers purchasing a primary residence in Detroit, the mortgage giant of Rocket Companies Inc. said Monday.