Uncategorized

Finance of America recorded a net earnings increase for continuing operations during the first quarter when increased loan volume and positive fair value adjustments offset the impact of wider spreads.The company recorded $80 million in net income on that basis, which it made the focus of its quarterly press release. The latest figure compared a $16 million net loss from continuing operations a year earlier, according to Chief Financial Officer Matt Engel. "These results were aided by positive fair value adjustments during the quarter, while spreads widened slightly," he said, referring to a broader trend in the markets linked to tariff-related uncertainties during the period.Since acquiring American Advisors Group, FOA has been a leading originator of reverse mortgages that older borrowers can use to withdraw equity from their houses while living in them, so long as they maintain the property. It continued to build on that in the first quarter, Engel said."We delivered $561 million in funded volume, up 5% from the fourth quarter of 2024 and 32% from the first quarter of 2024," Engel said.The relative performance from a margin perspective was not as strong, he noted."Our wholesale channel exceeded volume expectations, helping us meet our overall guidance. However, since wholesale carries lower margins, the channel mix offset the product level improvement and our overall revenue margin was flat," Engel said.The company's stock price rose in late trading after earnings were released from levels around $19.50 to above $21 per share, then plateaued at that level. At one point last year, Finance of America's share price was in the single digits and there were questions about its listing status.Other challenges the company has had to address recently included near-term debt maturities that have been a broader concern for nonbank mortgage companies.Finance of America no longer has any near-term unsecured debt, but it did previously and found itself forced to exchange some it had coming due to avoid a likely event of default.Fitch initially downgraded the company to RD or restricted default prior to that debt exchange. The rating agency later upgraded the company to a low-end speculative grade rating of CCC to reflect the post-exchange capital structure, Eric Orenstein, senior director at Fitch, in a recent interview.

Loandepot saw a slight improvement in its earnings for the first quarter of 2025, but remained in the red after taking a $20 million loss from 2024 MSR bulk sales, it reported Tuesday. The Irvine, California-based firm had a net loss of $40.7 million in the first quarter, a rebound from a net loss of $67.5 million in the previous period. Despite being in the red, Loandepot's margins saw an uptick to 327 basis points, up from 260 basis points in the fourth quarter of 2024, thanks to a surge in demand for its home equity products.Speaking on the company's earnings call, CEO Hsieh thanked former CEO Frank Martell for his leadership over the past three years. "Frank [Martell] is a man of honor and a servant leader. His care for team Loandepot and the customers we serve is evident," said Hsieh. "As we go forward, the team and I will focus on capitalizing upon the things that already make Loandepot great," Loandepot's founder said. "Our multi-channel sales model, proprietary mello tech stack, wide product array, powerful brand muscle and our servicing business are foundational places in which loanDepot can win." Martell is set to transition to a board advisory role come June, after which Hsieh will assume an interim CEO role.The top-20 ranked residential lender and servicer reported origination volume of $5.2 billion for the January-March period, down from $7.2 billion for the October-December period. But an increase from prior year's volume of $4.6 billion. Loandepot is predicting origination volume to range between $5 billion to $7.5 billion in the second quarter.Financial results come during a transitional period for the company, as founder Anthony Hsieh has returned to oversee day-to-day operations at the company. Hsieh will be focusing on expanding originations and driving growth, the company stated.Expenses at the firm edged downwards to $319.7million in the first quarter compared to $341.6 million in the previous quarter, earnings show. Year-over-year, expenses increased by $12 million or 4% on account of increased marketing expenses and personnel expenses, the company said.David Hayes, Loandepot's chief financial officer, said this quarter's results are a reflection of Martell's guidance, reflecting "the benefits of our investment in growth generating initiatives, despite the adverse impact of lower servicing revenue stemming from our 2024 MSR bulk sales.""Our home equity-linked products supported strong margin and volume increases, growing revenue by 23%," Hayes said in a statement. " On the cost side, aligned with our enduring discipline in expense management, our non-volume expenses decreased 3% year-over-year."

Home buyers increased their engagement with digital lending tools earlier this year, resulting in a higher number of interactions and applications as well as shortened turnarounds between pre-approval and loan submission. In the first quarter, borrowers generated 37.8% more pre-approvals than they did over the previous three months, according to the quarterly report from Lenderlogix. The activity pushed the average number of pre-approval letters per loan officer up to 26.5 from 23 in fourth quarter 2024.Consumers looking to purchase were also more digitally active in the post-application period compared to the end of 2024, Lenderlogix said. The software provider tracked borrowers' behavior through their use of its various platforms. The heightened activity suggests optimism remains among many aspiring homeowners despite ongoing affordability challenges, according to company CEO Patrick O'Brien. "Borrowers are entering the market with intent, and their use of digital pre-approval tools reflects a growing emphasis on speed and preparation in today's competitive environment," he said in a press release. Customers who proceeded to the lending stage obtained eight pre-approval letters on average before submitting an application. New mortgage applications coming through Lenderlogix's point-of-sale platform grew 54% between fourth quarter 2024 and the first three months this year.Meanwhile, the conversion rate from pre-approval to application inched up to 55% from 54%. Elevated borrower engagement appeared even as volatile interest rates applied downward pressure on the purchase market. At the same time, worries of a tariff trade war may have spurred demand among some consumers, who chose to accelerate purchases of big-ticket items like a new home. Interested buyers are demonstrating they are invested in the process, O'Brien continued. The average length of time between pre-approval and loan submission shrank from 91 days in last year's fourth quarter to 79.6 days in 2025's first. "We're seeing signs of increased urgency and lender responsiveness, both of which point to a more active purchase market and continued adaptation to borrower expectations," he noted."Borrowers are clearly staying engaged throughout the early stages of the homebuying journey," Their willingness to engage on lending technology platforms extends beyond application submission into the underwriting process. The latest data also showed "meaningful improvements in post-application engagement."The volume of document uploads on Lenderlogix's platforms post application accelerated 48% quarter to quarter. Among the processes seeing the largest growth rates was income and employment verification, which increased to 15.5% of first-quarter applications from 6.5% three months earlier. Similarly, digital asset verification grew to 36.7% from 33.1% quarter to quarter. Previous surveys have consistently shown lengthy closing times as one of the biggest pain points in the mortgage experience for buyers, with many open to technological processes that would expedite underwriting. Elsewhere in Lenderlogix's quarterly report, the data showed the mean pre-approval loan amount rising 1.3% to $326,714 from $322,532. Average sales prices in the pre-approval stage also increased 1.4% to $381,820 from $376,436.Average down payments in the first quarter edged up to 14.4% of the sales price from 14.3% three months earlier.Conventional mortgages backed by Fannie Mae or Freddie Mac accounted for 74.3% of pre-approved loans. Among government-sponsored applications, Federal Housing Administration-guaranteed activity made up 19.1%, while pre-approval letters for mortgages sponsored by the Department of Veterans Affairs or U.S. Department of Agriculture represented 4.5% and 1% shares, respectively.

The Federal Housing Finance Agency will allow Fannie Mae and Freddie Mac to "talk to each other" to combat fraud, Director Bill Pulte said. In a post to X (formerly Twitter) Monday evening, the FHFA leader said the collaboration between the government-sponsored enterprises would be subject to terms and legal conditions. Pulte said details would follow, and an FHFA spokesperson didn't respond to a request for comment Tuesday. Fannie Mae and Freddie Mac are both under FHFA conservatorship but remain competitors in the mortgage space. The GSEs collaborate in some forms, such as the Uniform Mortgage Data Program, but are largely barred from working together despite their conservatorship."FHFA has made clear, however, that the GSEs are operating as unique and separate businesses and will continue to exercise independent business judgment in the use of loan data," a Fannie Mae post about the UMDP states.The FHFA does include Fannie Mae, Freddie Mac, and the Federal Home Loan Banks in its Suspended Counterparty Program. The list includes around 200 companies and individuals barred from doing business with the GSEs or FHLBanks, but it hasn't been updated since October. Pulte has pledged to step up the FHFA's use of the resource.Ed Pinto, a senior fellow and codirector at the American Enterprise Institute Housing Center, said Pulte's assertion regarding GSE conversation was correct. The former Fannie Mae executive recalled asking the company's general counsel in 1986 about guardrails in speaking with Freddie Mac, long before the competitors were brought under FHFA conservatorship."The answer was, you can talk to them about things that are for the good of the order of the mortgage industry," said Pinto.He cited efforts such as uniform application and uniform appraisal rules, and said Fannie and Freddie couldn't discuss efforts that would restrict competition. Separate policies for Fannie Mae and Freddie Mac could also be disruptive."You don't want gaming to go on," said Pinto, suggesting a tighter set of rules at one GSE would lead counterparties to work with the other. Pulte has made fraud a prominent focus of his agency, announcing several efforts last month via social media posts. Those include a new mortgage fraud tip line, and potential "loan recalls" for both GSEs. The FHFA director has also repeatedly referenced occupancy fraud, and separately suggested in a social media post that the new tip line was receiving input. "If you are committing mortgage fraud, you are a risk to the system and we are going to take the appropriate steps within our statutory capability," he said in a televised Fox Business interview Monday afternoon. In that interview, Pulte said the regulator has made an unspecified number of criminal referrals to the Department of Justice. One of those includes New York Attorney General Letitia James, who has joined other state AGs in suing the Trump administration over its various executive actions. 

The House Committee on Veterans Affairs marked up a bill on Tuesday that would institute a successor to a last-resort relief program for distressed borrowers that ended this month.The VA Home Loan Reform Act would create a new form of the partial claim used during the pandemic. The original partial claim's successor, the VA servicing purchase program, just ended.Mortgage bankers have been supporting recent updates to the legislative proposal while urging legislators to fast-track it given the phaseout of VASP."Without swift legislative action and subsequent VA implementation, thousands of veteran homeowners recovering from temporary financial hardship could face heightened foreclosure risk," Bill Killmer, a senior vice president at the Mortgage Bankers Association, said in a letter.Updates to the bill that the MBA said it supported included a clarification that the new partial claim would not reduce the government guarantee on VA loans, and elimination of interest charges on the second-lien balance.Legislators also recently increased the maximum claim amount to 30% from 25%, and replaced what had been a fixed date at which the program would end to a rolling five-year implementation, according to the association."These changes, many of which echo recommendations in our March testimony, represent real progress toward creating a partial claim solution that protects veteran borrowers, provides servicer clarity and aligns with existing government-backed programs," Killmer said.While the industry had ideally hoped for a permanent partial-claim program, the Department of Veterans Affairs has struggled to add one due to limitations in its authorizations as written, and its budget. The department ended the pandemic partial claim in October 2022 due to budgetary considerations, but then later implemented VASP to replace it after finding the lack of a partial claim exposed tens of thousands of veteran borrowers to foreclosure risk.Federal officials' focus on the VA's budgetary constraints has recently intensified as the Republicans currently in power in Washington have broadly engaged in efficiency initiatives that have included staff cuts at the department.The bill's sponsor, Rep. Derrick Van Orden, R-Wis., has been critical of VASP's costs and questioned whether its loan purchases fit within the VA's authorization. He said the new partial claim is a better alternative. Van Orden chairs the House's VA subcommittee on economic opportunity. The committee's markup discussions suggest that the bill will have backing from the Republican majority, who said they have worked to strike a bipartisan compromise on the issue.The attempt to reach a middle ground appeared closer to achieving it than a previous version of the bill, which had left some Democrats dissatisfied.Rep. Herb Conaway, D-N.J., called for a temporary restoration of VASP to help existing borrowers who need such assistance, which would give legislators more time to work on a bipartisan partial claim solution.Rep. Mark Takano, D-Calif., sought a return to the foreclosure ban the department had previously had in place to bridge the gap between the original partial claim and VASP with a similar interest in giving borrowers who needed the last-resort assistance but missed the cutoff a break.Van Orden indicated VASP's purchase structure was inappropriate given it's not a loan buyer but a partial guarantor of mortgages, and the cost of the program was excessive, so he would not favor a return to it that could jeopardize department funding for other initiatives.He also characterized a moratorium as a return to the kind of department overreach Republican legislators are trying to end. Van Orden expressed disappointment with the two Democrats' caveats after what he said was bipartisan discussion on the bill's current form, while Conaway asked when he couldn't consider providing relief from a foreclosure when that can be less expensive than going through with one."Unless we can trust each other, this is never going to work," Van Orden said.

Dream Finders Homes touted recent mergers and continued growth momentum in an unsettled economic environment, as its revenues accelerated but profits stalled in the first quarter. The Jacksonville, Florida-based homebuilder and lender posted net income of $54.9 million for the three-month period ending March 31, inching up 0.8% on a year-over-year basis from $54.5 million. Compared to the fourth quarter of 2024, though, the bottom line receded 57.5% from $129.3 million. The company made no mention of potential tariff headwinds that recently led other new-home construction businesses to advise of price hikes at the end of the 2025. Instead, the company's CEO gave a favorable assessment of where Dream Finders stood, maintaining expectations for growth this year. "All in all, given the continued challenging environment from a mortgage rate and affordability perspective, I am pleased with the performance of the team and our results," said Dream Finders Chairman and CEO Patrick Zalupski in a press release. The company did not offer a formal earnings call.Although net income stayed near its level of a year ago, revenue across both its building and mortgage lending units surged 19.6% to $989.9 million from $827.8 million in the equivalent period last year. The latest number reflected a 36.5% pullback from fourth quarter's $1.56 billion.Home building accounted for $970.1 million of first-quarter 2025 revenue, with financial services providing $19.8 million. In the same three months of 2024, totals were $825.2 million and $2.6 million. Home building and mortgage lending brought in $1.53 billion and $26.6 million, respectively, in fourth quarter 2024. New orders picked up by 17.8% year over year to 2,032 from 1,724 in the first quarter. Order numbers also were higher from fourth quarter's 1,611.Home closings also grew to 1,925 from 1,655 one year prior but decreased from 3,008 reported between October and December. The average price of closed homes in the first quarter clocked in at $498,284 compared to $494,995 and $507,477 three and 12 months earlier.  While sales of existing homes stagnated for much of the past two years, builders of new properties maintained much of their growth, generating interest thanks to pent-up consumer demand. Threats of a trade war and macroeconomic challenges are throwing cold water on previous optimism, as builders plan the rest of their year. Dream Finders, though, still expects the number of closed units to increase in 2025 to an estimated 9,250, up almost 8% from 2024's 8,253.       Dream Finders' acquisition activityGrowth is likely to come as recent merger-and-acquisition activity bears fruit for the company. Profits flattened last quarter despite higher revenue, as Dream Finders simultaneously pushed forward on closing key deals and wrapping up others that stand to expand homebuilding, mortgage lending and title capabilities. To start the year, it completed its purchase of fellow homebuilder Liberty Communities. "Liberty provides us a great opportunity to expand into the Atlanta market, which is the largest housing market in the Southeast and the only major Southeastern market where DFH was lacking a presence," Zalupski said. In March, Dream Finders subsequently closed on its purchase of lending-related assets previously belonging to Cherry Creek Mortgage, folding them into its subsidiary Jet Homeloans. Since first-quarter's end, the homebuilder announced the completion of two new mergers, expanding the financial services side of the business with the addition of title insurance provider Alliant National. In early May, the company also closed on the acquisition of assets of Green River Builders, opening up further access to the Atlanta market. With the two latest transactions, Dream Finders has completed ten acquisitions in six years. It now owns and operates communities in 10 states in the Mid Atlantic, Southeast and Southwest. At the end of 2024, it counted 242 active communities in its portfolio. "We are confident all of these transactions will provide significant growth opportunities in our homebuilding and financial services segments, allowing us to continue to grow our earnings and deliver above-average shareholder returns," Zalupski remarked. 

Bloomberg News Treasury Secretary Scott Bessent on Tuesday told lawmakers in the House Appropriations Committee that the U.S. is renegotiating trade deals with 17 of its 18 largest partners — with the notable exception of China — and expects most to be finalized by year's end. In defending the Trump administration's aggressive use of tariffs, Bessent sought to downplay concerns about a sprawling trade war, arguing that the U.S. was making progress with major trading partners. He acknowledged the tariffs were unpopular with many American allies but framed them as necessary, especially given that some other countries have put tariffs on the U.S. in the past."Approximately 97 or 98% of our trade deficit is with 15 countries. Eighteen percent of the countries are our major trading partners, and I would be surprised if we don't have more than 80 or 90% of those wrapped up by the end of the year," Bessent said. "And … in negotiating with some of them, they may not like the tariff wall that President Trump has put up, but they have [tariffs as well]."In an exchange with committee chair David Joyce, R-Ohio, Bessent said some renegotiated trade agreements could come as early as this week. "I expect that we can see a substantial reduction in the tariffs that we are being charged, as well as non-tariff barriers … so that is proceeding very well," he said. "Perhaps as early as this week, we will be announcing trade deals with some of our largest trading partners."Bessent was pressed by committee ranking member Steny Hoyer, D-Md., on whether the U.S. was in a recession, alluding to President Donald Trump's assertion in a recent NBC interview that a recession would be "OK" in the short term. Despite Trump's comments, Bessent rejected the idea of a U.S. recession, traditionally defined as two consecutive quarters of contraction in the gross domestic product. "I believe in data, and there is nothing in the data that shows that we are in a recession," Bessent said. "As a matter of fact, the jobs report has surprised to the upside."Bessent's optimism comes in contrast to the economic concerns wracking the financial industry. Nearly three-quarters of bankers believe the U.S. is either already in a recession or will enter one within the next year, according to a new survey of 427 community bank executives conducted by fintech firm IntraFi.When Hoyer asked Bessent if he would reconsider his position if the next quarter shows continued negative growth — meeting the textbook definition of a recession — Bessent cautioned against reading too much into the data, which he said could contain a lot of short-term fluctuations. U.S. GDP is estimated to have slipped 0.3% in the first quarter of 2025, marking the sharpest decline since early 2022. "Congressman, these economic numbers are noisy and subject to substantial revision," Bessent said. "So I, having looked at a detailed analysis, would believe that the first-quarter GDP would be revised upward."Hoyer expressed concern also with steep cuts the Trump administration has proposed for the Internal Revenue Service, noting the agency had long been underfunded and lacking in staff. The Maryland lawmaker warned that slashing up to 40% of the agency's workforce and 20% of its budget would cripple enforcement, gut morale and allow wealthy Americans to cheat on their taxes. "[Tax cheating], of course, increases what others pay and explodes the deficit," Hoyer said. "The story is the same across the federal government. Americans are reeling from this uncertainty in their economy and in their government, they need answers, more than that, they need an adult in the room."Bessent defended the cuts as focused on reducing paper-heavy processes and trimming outdated IT and inefficiencies, claiming Treasury had already saved $2 billion without affecting operations. "We achieve these cost savings by eliminating renegotiating and de-scoping wasteful IT and professional services contracts and addressing longstanding inefficiencies, such as auto-renewed licenses unused for years [and cutting] administrative costs, with a particular focus on paper processing," Bessent said. "Last year, the IRS spent approximately $450 million on paper processing with nearly 6,500 full-time staff dedicated to the task through policy changes and automation. The Treasury aims to reduce this expense to under $20 million by the end of President Trump's second term."Bessent said the IRS is decades behind on IT modernization, estimating such inefficiencies have wasted up to $50 billion, and said current staff cuts are simply returning the agency to levels it was at before a temporary personnel and infrastructure surge he said was driven by the Inflation Reduction Act, which former President Joe Biden signed in 2022.According to the U.S. Treasury Inspector General for Tax Administration, the Inflation Reduction Act initially provided the IRS with $79.4 billion in supplemental funding through fiscal year 2031. However, as of March 2025, Congress reduced that amount to $37.6 billion through a series of legislative rescissions.The Department of Government Efficiency, led by Elon Musk, has significantly reduced the IRS's operations since January, cutting roughly 3,600 auditors and with apparent plans to cut nearly 40% of overall staff under a reduction in force plan. 

While it’s been said countless times, it bears repeating: the Fed doesn’t set mortgage rates.The Fed simply sets short-term interest rates, driven by its dual mandate of price stability and maximum employment.Nowhere on the Fed’s to-do list is ensuring mortgage rates remain attractive for home buyers.It’d be nice, but it’s simply not the case. Instead, mortgage rates are driven by longer-term debt, namely the 10-year Treasury.And the price/yield of the 10-year is dictated by economic data, which has continued to show strength, for now.The Fed Will Hold Rates Steady TomorrowAs seen in the chart above from MND, the last two Fed meetings had no impact on mortgage rates.It’s basically a foregone conclusion that the Fed will hold its short-term fed funds rate steady again tomorrow at a range of 4.25% to 4.50%.At last glance, the CME FedWatch Tool has odds of 96.8% for no action, meaning bonds and mortgage rates won’t be swayed (not that they necessarily would anyway with a cut/hike).But the takeaway is there isn’t a compelling case at the moment for the Fed to take any action.This means mortgage rates should also remain relatively flat for the foreseeable future, barring any new economic data that comes in overly hot or cold.The last meaningful economic report was the monthly jobs report (NFP), which surprised on the upside and had many speaking to the resilience of the U.S. economy.Some 177,000 jobs were added in April, significantly higher than the estimated 133,000 median forecast.However, there are growing concerns of a recession, especially as the effects of the trade war begin to show up on Main Street.There’s a theory that businesses are front-running tariffs, meaning business looks hot because they’re jamming in as much of it as possible before it gets more expensive.But you talk to people on the street and things don’t look or feel so rosy.So there’s a chance the data is lagging and might be painting an overly optimistic picture for an economy on the brink.That would actually spell good news for mortgage rates, as bad economic news is often an effective way to lower interest rates.Trump Again Asks for the Fed to Cut Rates Now!On his Truth Social platform, Trump applauded the jobs report and argued that due to a lack of inflation, the Fed should lower rates.As noted, even if they did, it likely wouldn’t lead to a lower 30-year fixed if economic data didn’t support it.Ultimately, bond yields drive mortgage rates, and if those don’t come down, even if the Fed were to cut, mortgage rates won’t either.The Fed, like bond traders, don’t appear to be in any rush and are in what feels like a perfectly appropriate holding pattern.After all, there’s just too much uncertainty regarding the trade war and tariffs that has yet to show up in the data.Making any major move when you don’t know the impact wouldn’t be prudent. We simply don’t know what this will look like, nor how long it will go on.Or if the White House will strike a deal with China. That’s the one thing that could move rates more than anything else right now, perhaps.With so many unknowns, and economic data arguably good enough to maintain the status quo, the Fed won’t cut.The last Fed rate cut was on December 18th and the next one isn’t expected until July at this point.That can change, but the takeaway recently is the expected Fed cuts have been pushed back.There are still four quarter-point cuts projected by January, but until recently, four were expected during 2025.Why I Expect Lower Mortgages in the Second Half of 2025Simply put, lower mortgage rates have been delayed, as I kind of anticipated in my 2025 mortgage rate prediction post.I always felt that the second quarter would see an uptick, as it normally does, before easing began in the third and fourth quarter.This is especially true this year due to the trade war, and the next big shoe to drop is the proposed tax cuts, known as “one big, beautiful bill.”While it’s supposed to help real wages for Americans and boost take-home pay, it’s also expected to significantly increase government spending and debt issuance along with it.That’s slated to go down around Independence Day, so that too should limit what the Fed can do, while keeping bond traders in a tight range.But as the economic data weakens, as many suspect it will, chances are bond yields will drop and mortgage rates will come down with them.It’s probably a matter of when, not so much if, though if the tariffs prove to be inflationary (still unclear), that could dampen any improvement in rates.The Fed will be watching these developments (and data) closely to determine its next move, but bonds will likely lead the way before they act.So pay attention to upcoming jobs reports, the 10-year bond yield, and the price of MBS to track mortgage rates.If the economic data points to a recession and/or slowing economic growth, the silver lining will be lower mortgage rates.It might just take a bit longer to get there than originally expected if we see a temporary economic “boom” from front-running tariffs. Before creating this site, I worked as an account executive for a wholesale mortgage lender in Los Angeles. My hands-on experience in the early 2000s inspired me to begin writing about mortgages 19 years ago to help prospective (and existing) home buyers better navigate the home loan process. Follow me on X for hot takes.Latest posts by Colin Robertson (see all)

Like several of its independent mortgage banker peers who previously reported, UWM Holdings needed to take a servicing adjustment to earnings, which pushed the company into the red for the first quarter.Even with the GAAP loss, UWM Chairman and CEO Mat Ishbia said during the earnings call the company was profitable in all the measurements it looked at.For the period, UWM lost $247 million, inclusive of a $388.6 million mortgage servicing valuation write-down. This compared with net income of $40.6 million in the fourth quarter and $180.5 million for the first quarter of 2024. Investors reacted to the news by driving UWM's stock price as of noon Wednesday to $4.28 per share, down 49 cents from its previous close.Earlier, Pennymac and Mr. Cooper both reported they had to take MSR write-downs as well, of $98.7 million and $82 million respectively. But on a GAAP basis, both companies remained profitable.UWM's gain on sale was at the lower end of prior guidance, at 94 basis points. That missed Keefe Bruyette & Woods' expectations of 110 basis points but "the lower margin quarter-to-quarter was in line with what we have seen in the broker channel from other large broker originators in [the first quarter]," Bose George said in a flash note put out prior to the earnings call.Total revenue of $613.6 million compared with $720.6 million the prior quarter and with $585.5 million the previous year.In terms of volume, the company had its best first quarter since 2022, with production of $32.4 billion, up 17% compared with one year ago, when it did $27.6 billion. But it was lower than the fourth quarter's $38.7 billion. This was also below KBW's $32.9 billion estimate for the period.The company's volume has exceeded $20 billion for eight consecutive quarters, executives said during the call.Purchase originations were lower from both comparative periods, at $21.7 billion, versus $21.9 billion in the fourth quarter and $22.1 billion for the first quarter of 2024.But refinance production of $10.6 billion, while lower than the fourth quarter's $16.8 billion, was an improvement over one year ago, when it did $5.5 billion.The industry-wide broker share of volume at 28% is the most since 2008, Ishbia pointed out, showing UWM made the right decision going exclusively wholesale.UWM's servicing strategyIshbia discussed UWM's decision to bring the servicing function in-house using ICE Mortgage Technology, as something it had been contemplating for many years."By leveraging the latest technology and AI, our plan is to be the most efficient servicer in America," said Ishbia. "We are getting control of this part of the process."During the Q&A Ishbia added that UWM expects to start boarding loans at the beginning of 2026 and handle the portfolio entirely by the end of next year.He also anticipated better service levels for borrowers and even improved recapture rates through its mortgage brokers by having the function done in house.But it does not mean UWM will change its strategy regarding MSR package sales."We were not selling MSRs because we were subservicing and we're not going to hold them because we're servicing ourselves," Ishbia said. "We're going to be opportunistic, like we always have."While having its own platform does make UWM lean towards retaining, any decision to sell is dependent on the opportunities and the pricing in the market for packages, he continued.UWM's approach to M&A, techWhen asked about any possible mergers or acquisitions, Ishbia said while he looks at everything, UWM is "a build versus buy type of company."This point of view applies to both production and technology.Ishbia used the call to tease some things the company will be rolling out in the coming weeks and months that he called "game changers."Ishbia guided to second quarter volume of $38 billion to $45 billion; if anything, he expects the company to break the $40 billion threshold in the current quarter. Gain-on-sale guidance remained in the 90 basis point to 115 basis point range."While the macro environment may remain choppy, we will continue investing and winning," Ishbia said. "I can promise you there is no other mortgage lender better equipped and prepared to help brokers [and] borrowers, regardless of what the market does."

Michelle Bowman, governor of the U.S. Federal Reserve, said the central bank and other regulators should pay close attention to the Treasury market as it draws down its balance sheet.Zach Gibson/Bloomberg WASHINGTON — The Senate Banking Committee voted on party lines to recommend Michelle Bowman as the Federal Reserve's vice chair for supervision to the full Senate. The panel voted to advance Bowman's nomination in a party-line 13-11 vote. She now joins a queue of financial policy nominees including Jonathan McKernan, who President Donald Trump tapped to lead the Consumer Financial Protection Bureau and Jonathan Gould, nominated to head the Office of the Comptroller of the Currency. Bowman, already a Fed governor, is expected to sail through the full Senate vote relatively easily as both the industry and Republicans have stood uniformly behind her nomination so far in the process. Her elevation to vice chair for supervision will come as the Fed board, through a chunk of 2026, will still be controlled by Democratic members, unless Trump removes them as he did at the credit union regulator. Doing so would be unprecedented at the Fed, and would likely be subject to a legal challenge. The panel also advanced the nominations of Andrew Hughes to be deputy secretary of Housing and Urban Development, David Woll to be general counsel of the same agency and John Hurley to be under secretary for terrorism and financial crimes at Treasury, among others. "These nominees are not just capable but essential to our nation's prosperity," said Senate Banking Committee Chairman Tim Scott, R-S.C.,  in a statement. "Their roles demand accountability and expertise to protect American interests both at home and abroad." Sen. Elizabeth Warren, D-Mass., led Democratic lawmakers in voting against Bowman. "Bowman wants to lead a key part of the Federal Reserve, but refuses to acknowledge what economists know to be true: Trump's tariffs are breaking our economy," Warren said at the vote. "She also signaled that more Wall Street deregulation is on the way, putting small businesses and households at even greater risk." Warren and other Democrats also voted against the HUD nominees. "Mr. Hughes and Mr. Wall want to be confirmed to positions at HUD, but they seem unwilling to stand up against cuts that will undermine fair housing and make it harder to tackle skyrocketing housing costs," she said. "They both refused to answer whether they had signed a loyalty pledge to the President." Banking groups immediately applauded the Senate's vote. The Independent Community Bankers of America trade association "and the nation's community bankers have long been strong supporters of Governor Bowman, and we call on the Senate to take up and approve her nomination to serve as vice chair for supervision at the Fed," said ICBA President and CEO Rebeca Romero Rainey in a statement. "Governor Bowman has been a strong proponent of regulations that prioritize safety and soundness, pragmatic oversight that targets stresses in the financial system, and rules that meticulously follow administrative procedures." The Financial Services Forum said that the country's "leading banks urge swift action" to confirm both Bowman and Gould.  "They are well-qualified nominees and it is crucial that these roles be filled," the trade group said.