- Mortgage originators such as Rocket Cos and UWM Holdings have reported a drop in home-loan volumes for the fourth quarter.
- Overall U.S. single-family home-mortgage originations dropped from over half a trillion dollars in the third quarter to about $400 billion in the fourth quarter.
- Big players are still seeing pricing pressure, though partly by their own actions.
- Improved pricing power for the biggest remaining players as others are forced out of the market.
- Bigger players could see better gain-on-sale margins, a measure of what originators earn when selling mortgages.
WSJ — Markets — Mortgages — Heard On The Street — Banking — Investment
There’s a Silver Lining for Mortgage Companies in a Bleak Market
Big mortgage originators face a shrinking market, but better profitability could be seen on mortgage sales. Improved pricing power may come as others are forced out of the market.