Refinance demand up

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1. JPMorgan makes more cuts

JPMorgan has laid off hundreds of mortgage employees as the housing market continues to suffer from elevated interest rates.

The layoffs, that also included some managers, are due to lower industry volumes and come after the bank's mortgage-origination volume plummeted 60% last year.

The bank has made similar cuts over the past year and is not alone, with rival Wells Fargo and nonbank lenders also slashing their ranks.

2. Market trends

Applications: Mortgage applications to purchase a home rose 3% for the week, but were 37% lower than the same week one year ago. The average loan size on a purchase application increased to $428,500 - MBA

Refinance: Refinance demand surged 18% week to week but was still 75% lower than the same week one year ago - MBA

Foreclosures: In January, there were 31,557 U.S. properties with foreclosure writings, a 36% increase YOY. One in every 4,425 housing units in the country had a foreclosure filing in January. Lenders repossessed 3,896 properties, a 6% increase from December but down 19% YOY - ATTOM

3. Northpointe bank exits correspondent lending

Northpointe Bank has announced that it will no longer offer correspondent lending services.

This decision was made due to a significant contraction in the mortgage industry and will allow Northpointe to focus on its retail lending, mortgage warehouse financing, and specialty loan servicing businesses. The last day for fundings is April 28th.

The bank was the 24th largest correspondent lender, with correspondent production accounting for 41.7% of its total origination. The rising rate environment also had an impact on its origination, leading to a 25% decline in production from the previous year.

4. Credit availability dips

Mortgage credit availability declined for a second consecutive month in January, with the Mortgage Credit Availability Index down 0.1% from December, indicating tighter lending conditions.

The current credit conditions are close to a 10-year low, driven by declining originations and shrinking industry capacity.

Despite subdued activity, the MBA predicts that credit will become available again in the near future, as rates continue to decline and housing activity gradually picks up.

5. More Nuggets

Fannie Mae: The national multifamily vacancy rate is expected to slowly rise in 2023 (Link)

Signs of life in the U.S. housing market could ‘make our jobs harder’, says Fed’s Neel Kashkari (Fortune)

Hsieh Disputes loanDepot Statements In Proxy Fight (NMP)

☀️ See you on Monday!

p.s. lets rock!

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