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In response to industry feedback, the Federal Housing Finance Agency has redrawn some parts of its tentative roadmap for rolling out legislatively mandated updates to its credit reporting and scoring system.The bi-merge credit reporting requirement done in conjunction with the transition away from the current FICO Classic score will occur in the fourth quarter of 2025, rather than during the first-quarter of this year as initially proposed.Industry groups such as the Housing Policy Council have asked that the FHFA allow the bi-merge approach — under which two, rather than three, reports from national credit bureaus may be used — to occur later in the game."Synchronizing bi-merge credit reporting with the implementation of the new credit score model requirements will reduce complexity for market participants, which is a key objective of our transition efforts," FHFA Director Sandra Thompson said in a news release.Some of the key changes made to the schedule for bringing advanced credit metrics to government-sponsored enterprises Fannie Mae and Freddie Mac are pertinent to how reports in the mortgage industry get merged and the implementation of advanced scores.The agency also is changing the implementation timeline for the credit score update more specifically called for in the legislation, accelerating an implementation step for Vantagescore 4.0."The enterprises will accelerate the publication of VantageScore 4.0 historical data, originally expected to be published in the first quarter of 2025, to early in the third quarter of 2024," the FHFA said."FHFA and the enterprises continue to work towards providing similar data to support the transition to the FICO 10T model, contingent upon achieving the necessary conditions for acquisition and publication of this data," the agency added.The receipt of data on the two newer scores' performance earlier in the process also has been a theme in requests from the industry."The release of historical data on tens of millions of enterprise loan acquisitions affirms the commitment of FHFA and the Enterprises to a robust, transparent implementation process," Thompson said.The rising prices of credit reports and scores are another hurdle the industry has commonly voiced concern about. That's led to interest in more alignment throughout the market on these practices beyond Fannie Mae and Freddie Mac, who buy many but not all mortgages. The Community Home Lenders of America issued a statement welcoming the updates, but also noted that it would like to see in more detail about their ramifications for costs."We look forward to working with FHFA over the next few years to ensure that this saves money for borrowers – particularly those who are underserved and first-time homeowners," Director Scott Olson said in a press release.Several recent developments seem to support efforts to get market participants to agree on what scores to use in ways that would minimize the need to purchase multiple credit metrics.The Federal Housing Administration, another major player in the government-related mortgage market that's key to first-time homebuyers, recently released a statement indicating its looking into the possibility of adopting advanced score, although it's shown less interest in the bi-merge."We are currently conducting analysis to evaluate the potential impact of alternative credit scoring methodologies on borrowers seeking FHA-insured mortgages. The results of that analysis will be used to assess our next steps regarding this issue," a spokesperson for the Department of Housing and Urban Development said in an email earlier this week.At least one lender, Cardinal Financial, has publicly reported that it's using 10-T to originate Department of Veterans Affairs-guaranteed mortgages for securitization. The VA does not have a score requirement, but this could be significant in terms of encouraging others.At least two other nonbanks and one depository have reported 10-T for private loans, and the Federal Home Loan Bank of San Francisco recently authorized members to begin using 4.0 to originate mortgages in portfolios securing corporate financing it provides.

The CFPB issued guidance to law enforcement agencies and regulators that comparison-shopping websites may be breaking the law by accepting payments to steer consumers to certain products or services. Adobe Stock The Consumer Financial Protection Bureau issued guidance about comparison-shopping websites and lead generators, warning that companies may be deceiving consumers and manipulating results by taking kickbacks from banks and lenders to steer borrowers to specific financial products.The CFPB said Thursday that it was providing guidance to law enforcement agencies and regulators on ways in which digital intermediaries "can break the law when they steer consumers to certain products or lenders because of kickbacks." The CFPB did not identify any companies by name. But the field of comparison websites is crowded and most have financial relationships with banks, credit card issuers and mortgage lenders. Many community banks and credit unions have trouble competing because they often get buried at the bottom of search pages even though their products may offer higher yields or be better suited to the consumer. The top comparison-shopping websites include NerdWallet, Credit Karma, Bankrate.com, WalletHub and LendingTree, among others. A few sites have launched their own credit cards, raising concerns about whether they are pushing their own products to consumers. Some companies have found themselves in regulators' crosshairs. Last year, Credit Karma paid $3 million to reimburse consumers after the Federal Trade Commission alleged the company gave consumers false credit card preapproval offers — largely because the offers got better click rates. "The CFPB is working to ensure that digital advertisements for financial products are not disguised as unbiased and objective advice," CFPB Director Rohit Chopra said in a press release.Last year, the CFPB issued a policy statement redefining what constitutes an "abusive" act or practice as behavior that generally obscures important features of a product or service, or takes unreasonable advantage of a consumer. The "abusive" standard has vexed banks and financial firms since it was introduced in the Dodd-Frank Act in 2010.Companies that operate digital comparison-shopping tools can violate the federal prohibition on abusive acts or practices if they distort the shopping experience by steering consumers to certain products or services based on remuneration to the operator, the CFPB said. Some digital intermediaries manipulate results on their sites by accepting kickbacks, referred to in the industry as "bounties," giving preference to financial firms that pay them to top the lists of results.Lead generators also are included in the CFPB's guidance if they "steer consumers to one participating financial services provider instead of another based on compensation received," the bureau said."Consumer interests are not served when they are steered toward more expensive or less favorable products because those products are offered by the tool operator or its affiliates or because those products generate more revenue for the tool operator," the bureau said.The Consumer Financial Protection Act prohibits service providers from engaging in any unfair, deceptive or abusive act or practice, known as UDAAP. The bureau said it is concerned that the companies are taking "unreasonable advantage" of a consumer if they give preferential treatment to their own products or to other products and services "through steering or enhanced product placement, for financial or other benefits." A key problem is that consumers may rely on a comparison-shopping website or lead generator to act in their best interests without knowing of the payment arrangements behind the scenes. Digital intermediaries often are paid on a fee-per-action basis by receiving fees "per click, per application, per conversion, per offer, or per sale," the CFPB said. Often the comparison websites allow financial institutions to bid against each other for the best placement by paying bounties that target consumers that fit certain characteristics or that are aimed at meeting specific goals."The degree to which these bounties affect product placement depends on the operator's business model and the weight given to provider compensation over other factors," the CFPB said in its guidance. The bureau made a clear distinction between banner advertisements and pop-up ads and the compensation arrangements that give preferential treatment to certain products.It is unclear how the comparison-shopping websites will respond to the CFPB's guidance. In 2022, the bureau said that digital marketing firms that use algorithms or other analytics to target specific customers with ads or content can be held liable for abuses under federal law. 

Mortgage rates rose by 4 basis points this week, which was a far slower pace than the 30-year fixed rate loan increased over the prior two periods, Freddie Mac reported.There concerns that recent news over inflationary trends could delay any move by the Federal Open Market Committee to switch to a short-term rate cut.The 30-year fixed averaged 6.94% for the week of Feb. 29, following two consecutive weeks where the rate rose by 13 basis points, the Freddie Mac Primary Mortgage Market Survey said.Meanwhile the 15-year FRM declined by 3 basis points to 6.26%.For the same week last year, the 30-year averaged 6.65% and the 15-year, 5.89%."The recent boomerang in rates has dampened already tentative homebuyer momentum as we approach the spring, a historically busy season for homebuying," said Sam Khater, chief economist at Freddie Mac, in a press release. "While sales of newly built homes are trending in a positive direction, higher rates and elevated prices continue to pose affordability challenges that may leave potential homebuyers on the sidelines."This follows a week where the benchmark 10-year Treasury yield fell to 4.23% at 11 a.m. on Feb 29 from a peak of 4.35% on Feb. 22. Unlike short-term rates, the FOMC does not control movements in the 10-year Treasury.That change was not seen in the Zillow rate tracker, which was at 6.68% at that time, only down by one basis point from the previous week's average.The Mortgage Bankers Association's most recent Weekly Application Survey put the 30-year FRM at 7.04%, down 2 basis points from the week ended Feb. 16."Mortgage applications declined for the third consecutive week as rates over 7% continue to put a damper on activity," Bob Broeksmit, the MBA's president and CEO, said in a Thursday morning statement. "Higher than anticipated inflation and jobs data are keeping upward pressure on mortgage rates, and an insufficient volume of existing homes for sale in many markets is making it even more difficult for many aspiring buyers to get in the market." Optimal Blue's tracker from its product and pricing engine had the 30-year FRM averaging 6.934% on Feb. 28, virtually flat compared with seven days prior.The Personal Consumption Expenditures price index, which has been labeled as the Federal Reserve's metric of choice on inflation, rose 0.3% in January from the prior month and 2.4% on an annual basis.That will cause the Fed to delay any rate cuts until later in the year, said Nigel Green of forex trader deVere Group."We expect the easing of monetary policy to be ruled out in March by the Fed," Green said in a press release, "Indeed, with the trajectory to get back to the 2% inflation target looking increasingly slow, and with officials exercising caution, we could have to wait to until the latter part of the year for the highly anticipated Fed pivot."Earlier this week, First American economist Ksenia Potasov asserted that any delay in rate cuts would end up pushing the normal spring homebuying season into the summer.

Rocket Cos. is closing its Rocket Pro Originate business, which sponsors real estate agents and other financial services professionals to help customers obtain mortgages.The last day for sponsored professionals to submit mortgage applications is March 29, while loans must close by June 28, the lender confirmed Thursday. While Rocket will remove sponsorship of licenses, it won't revoke them."As we continue to evaluate our business and more precisely focus on the areas of growth for Rocket Mortgage, we made the decision to wind down our relationships with insurance agents, financial advisors, tax professionals and real estate agents who have been originating mortgages on our behalf," said Rocket in a statement. It's unclear how many mortgage loan originators the program sponsored, or how much volume it produced. Rocket also didn't reference the program in its recent earnings or a 10-K filing with the Securities and Exchange Commission this week. The move doesn't affect any Rocket Pro TPO brokers. The program, according to its website, allowed professionals to sign up as an MLO, with Rocket providing training. Sponsored LOs can work in 39 states, while mortgage brokers could work with Rocket Pro Originate in 11 states. Professionals with the program are able to offer Rocket's entire suite of loan products. The company will issue final rent payments for branch managers on June 1, and will refund license renewals for 2024 by the end of June. The announcement comes on the heels of Rocket's fourth quarter earnings report, in which it posted a $233 million net loss, but an adjusted net loss of $6 million. The megalender and servicer said its artificial intelligence prowess is giving it an edge in origination efficiency. CEO Varun Krishna said the firm cut almost $1 billion in expenses last year, which included slashing its project list by over 80%. Programs slashed or pivoted included Rocket Auto and Rocket Solar; the company didn't confirm Thursday whether Rocket Pro Originate was one of the programs slated for shutdown.

A year after suspending new applications, Pennsylvania is preparing to relaunch its Covid-19 relief program for struggling homeowners, but two other states announced the upcoming end to their initiatives.While an official date is still pending, the Keystone State is on track to begin enrolling qualified homeowners facing continued economic hardship from the pandemic in March, a spokesperson with the Pennsylvania Housing Finance Agency said. The news was first reported by investigative outlet Spotlight PA and confirmed by National Mortgage News, Citing slow processing times and other problems with a third-party vendor contracted to administer the program, Pennsylvania ceased accepting new applications in February 2023, with the intent of moving funding operations in-house. Although its program was unable to take new participants for over a year, the agency has continued to provide assistance to homeowners already enrolled. As of last week, the state has doled out $203.2 million to residents to help pay for mortgage, insurance, tax and other housing costs, with $94.7 million remaining. Only six other states received more money for their homeowners than Pennsylvania. The Department of the Treasury first made financial relief available to states and territories through the Homeowner Assistance Fund three years ago, leaving each jurisdiction responsible for the development and administration of their own programs. The fund was introduced through provisions in the American Rescue Plan Act of 2021, meant to address the economic challenges resulting from the Covid-19 pandemic. With Pennsylvania ready to reintroduce HAF measures, two other states recently announced pending March deadlines for homeowners to apply for payment assistance, with both stating their allotted share of monies was at or near depletion.New Hampshire informed residents it would close its HAF application portal on March 8. In mid December, the state began placing all new applicants on a waiting list, with reviews dependent on available funding. Residents on the list are considered on a first-come, first-served basis. Federal officials originally awarded the Granite State $50 million in 2021. Oklahoma, meanwhile, will cease accepting applications on March 20. Just over $28 million in aid remains in the state's original disbursement of $87 million, according to the Oklahoma Housing Finance Agency. Requests for almost $23 million of the remaining dollars are pending.As of mid February, over two-thirds of the $9.96 billion made available nationwide in the Homeowner Assistance Fund has been exhausted. Twenty-six out of 54 programs have already closed their programs to new enrollees, while six states, including Pennsylvania and New Hampshire, are placing applicants on a waiting list, according to the National Council of State Housing Agencies. Homeowner Assistance Fund engagement has varied from state to state, though, with a few expanding outreach efforts and adjusting eligibility criteria last year to help more residents. The changes made many homeowners who did not qualify on initial program rollout in some states, such as reverse-mortgage holders in California and Hawaii, eligible.States receiving any American Rescue Plan Act funding must spend their disbursements by late 2026. March 13 will mark the four-year anniversary of the declaration of a coronavirus national emergency.  

As the fate of real estate agent commissions hangs in federal courts, home buyers seem largely unaware of the controversy. A little under half, or 48% of homebuyers and sellers in a recent LendingTree survey said they don't know what commission percentage their agent received in their last transaction. Thirty-one percent of respondents meanwhile said they attempted to negotiate commissions. Realtors say homebuyers aren't raising many concerns around the compensation.RELATED: How some mortgage lenders and home builders form partnershipsRather than showing concerns about broker commissions, "I'm seeing more buyers shocked that [they] actually got approved or can buy, because they're freaked out by high payments," said Torrence Ford, a broker/owner at RE/MAX Premier in Atlanta. Realtors laud lenders for introducing flexible financing options to promote originations, and generally expect a stronger spring than the year prior. But agents aren't mulling on commission lawsuits and are instead emphasizing transparency to clients amid the uncertainty. "The most important thing to remember is that as Realtors, and maybe the lenders will understand this, we have not done a great job explaining how a buyer [broker] is paid," said Rebecca Durfey, a Realtor with Keller Williams in Glendale, Arizona. "So it makes sense that there was all of this ambiguity."Pending court cases focus on the longstanding commissions structure in which seller brokers are required to offer compensation to a prospective buyer's agent in order to get a property listed on Multiple Listing Services. A federal jury last October dealt a blow to major real estate players, ruling they conspired to inflate commissions under this traditional arrangement. The Department of Justice is seeking to reopen a prior probe into the National Association of Realtors on this issue. RELATED: As spring arrives, lenders adjust to a changing marketplaceWhile some minor rule changes have been enacted, significant upheaval of the current structure hasn't occurred. Feds indicated their desire for change in a pending Massachusetts settlement, while a Missouri court in May will hear final approvals for settlements between consumers and three major brokerages proposing some rule changes. "DOJ's involvement at this stage should serve as a definitive signal that the arc of resolution is bending toward outright decoupling of commissions as private litigants will be further emboldened and brokerages will be forced to contemplate a different future," wrote analysts at BTIG in a research note this week.Realtors meanwhile are doubling down on explaining the rules to buyers and sellers. Dominic Fuscia, a team leader and agent with Coldwell Banker in Philadelphia, suggested buyer agents will start regularly using specific disclosures in transactions with no buyer-agent commission. "If you want me to be your agent, I would need to facilitate a commission from you," said Fuscia describing the typical language on the forms. "It's all negotiable, but 1%, 2%, 3%, whatever it may be, it's a form that educates the buyer from the very beginning before you even go out."Among over 2,000 consumers surveyed by LendingTree in January, 31% of buyers or sellers said they attempted to negotiate commissions. Among that share, nearly two-thirds of consumers successfully reduced their fees. Another 36% of consumers said they weren't aware negotiating was an option, but would have attempted discussions in their transactions. NAR allows negotiations over commissions as well as compensation offers at $0. The Department of Justice, weighing in on a settlement between consumers and an MLS in Massachusetts, called those rule changes insignificant and "largely cosmetic." Such guidelines don't discourage the issue of buyer-brokers "steering" customers to listings with higher commissions, they say. READ ALSO: 10 states whose residents are the most obsessed with real estateFord, whose Atlanta-area business includes 37 agents and did $68 million in volume last year, said he's letting sellers know that if they don't offer a commission, agents could avoid their property."Buyers are already struggling to get pre-approved," he said. "The average household debt is increasing, credit card debts are increasing around the country. And [buyers] just may not have the ability to pay a real estate commission."Fuscia also raised concern over buyers in the lower end of the market that may not be able to afford their share of commissions that could reach $8,000 on a property between $200,000 to $300,000. "There needs to be some creativity," he said. Keefe, Bruyette & Woods suggested federal housing agencies, which have been mum on the topic, are discussing a financing workaround that won't disrupt the underwriting process. Changes could open the market to nontraditional models, and even send Realtors with less business toward dual compensation opportunities with lenders. Feds meanwhile propose scrapping buyer-broker compensation entirely, and simply dividing the fees between each party. Buyer broker commissions have a weak correlation to the final sales price of a home, DOJ attorneys say, and agents could instead offer a flat fee or hourly rate. Ford said he's hearing more holistic discussions about an agent's role, including on social media, rather than anxiety over pending court cases. "I'm hearing that tone as far as, 'Do you want your agent working hard for you or do you only want your agent with commission-breath worried about their money?' I hate to say it that way," he said, referring to a term for agents focused on money over customers' interests.Realtors and lenders meanwhile said they're seeing green shoots as the spring market ramps up, including buyers moving forward after attempting to wait out high rates last year. Prospective borrowers are showing more interest in adjustable rate mortgages, for example, understanding they can refinance. "[We] offer a buydown and we've seen the buydown percentage pick up." said Scott Bridges, senior managing director of consumer direct lending at PennyMac. "There is a cost to it, but the benefit outweighs the cost."Agents also mentioned depositories offering more deals to keep mortgage business, particularly government-sponsored products, consistent amid wavering volume."The lenders are doing a really good job saying, 'Hey, there's options.'" said Durfey, based in Arizona. "But it helps when you've got two people saying that, not just the lenders. It's the agents and the lenders coming together that can really help the buyers understand that there are options and it is a great time to buy."

Fairway Independent Mortgage Corporation was hit with a data breach at the end of last year because of a third-party bug, a notice filed with the Attorney General of Massachusetts shows.In Massachusetts, 430 customers were impacted by the cyber attack, which exposed their Social Security numbers, bank account information, credit card account numbers and other personal identifiable information, the lender disclosed Feb. 23. It remains unclear how many customers were affected nationwide. Two law firms, Turke & Strauss LLP and Console & Associates, P.C., have issued notices urging customers impacted to reach out, opening the door for future litigation. This could add to an already hefty line up of pending class action suits facing other lenders over recent data breaches.On Feb. 2, Fairway started informing its customers of the event that took place Dec. 4. In its notice, Fairway mentions the hack occurred due to a vulnerability in the vendor it uses.It did not divulge the name of the third party.Following the attack, Fairway "promptly implemented the patch after it was released by the developer to rectify the newly identified vulnerability," wrote Bryan Ramsey, assistant vice president of information security incident response at Fairway, in a notice to customers in early February."Although the engagement of a third-party security firm was initiated for the expeditious analysis of the data to identify impacted customers, it took an extended duration for the firm to uncover the relevant information," he added.The mortgage lender is offering two years of complimentary identity monitoring services through Experian, it said in its notice.Fairway declined to respond to a request for comment.A similar situation unfolded at Planet Home Lending late last year. According to the lender, a hack, which compromised the Social Security numbers of close to 300,000 Planet Home Lending customers, occurred due to a vulnerability in its information security systems purchased from Citrix Systems.The Citrix vulnerability was first discovered in August and the tech firm began releasing software updates in early October, according to the Cybersecurity and Infrastructure Security Agency. The exploit, known as "Citrix Bleed," allows hackers to bypass multi-factor authentication to hijack user sessions for Citrix's NetScaler ADC and Gateway information security software.The mortgage company noted prolific hackers LockBit used said vulnerability to bypass its protections and steal customer data. Planet faces at least six class action suits as a result of the breach.On Feb. 20, the Department of Justice and the United Kingdom announced they disrupted LockBit's operations by seizing control of servers used by the online gang.

The Consumer Financial Protection Bureau has filed a "friend of the court" brief in legal proceedings that may have broader ramifications for convenience fees in mortgage servicing, which some states have called on federal authorities to censure.Plaintiffs in Glover and Booze v. Ocwen Loan Servicing, a case pending in the U.S. Court of Appeals' 11th Circuit, have alleged that the company violated the Federal Debt Collection Practices Act by charging borrowers to make last-minute payments by phone or online.The amicus curiae brief sides with borrowers in the case, alleging that pay-to-pay fees are debt-related, governed by the FDCPA and violate its ban on certain charges.It cites FDCPA prohibitions against "collections of any amount (including any interest, fee, charge, or expense incidental to the principal obligation) unless such amount is expressly authorized by the agreement creating the debt or permitted by law."But Ocwen is appealing a lower-court decision supporting that stance, saying that the FDCPA doesn't govern the charges because they are not debt."The FDCPA only classifies activity as 'collection'— or an actor as a 'debt collector'— when the activity is performed on behalf of another," Ocwen said in a recent court filing."Ocwen does not charge convenience fees on another's behalf; it charges them on itsown behalf, for extra and purely optional services it offers itself," the company added later in the filing.The CFPB takes issue with the description of the fees as optional given that consumers don't choose their servicers and the payment option wasn't disclosed at origination when borrowers could still choose their mortgage company. "Consumers cannot choose their debt collector and cannot take their business elsewhere if they dislike a collector's practices. This provision ensures that collectors cannot take advantage of their captive audience by charging fees that a consumer did not bargain for upfront," the CFPB said.But Ocwen pointed out that borrowers could pay earlier through another method and avoid the charges, which it disclosed prior to payment."Each time they decided to use these optional services, Ocwen disclosed toGlover and Booze that each would be charged the convenience fee to use the optionalpayment method, disclosed the amount of the fee, and obtained their consent," the company said in its filing.The 11th Circuit's pending decision in the case could be significant as it may stand as the final decision unless it proceeds to the Supreme Court. The 11th Circuit could alternatively send the case back to the lower court for a second look.The CFPB has been making a broad push to stop what it describes as "junk" fees, raising questions within the mortgage industry about what divides acceptable from illegal charges in the regulator's view.The fees in the Ocwen case were $7.50 to $12 charges, according to the amicus brief and other court records. One plaintiff paid these fees 26 times, and the other incurred the charges 10 times.Mr. Cooper, another large mortgage servicer facing a convenience fee lawsuit, has tentatively agreed to settle it for nearly $3.6 million. At the time of this writing, the final approval hearing for the preliminary settlement was still pending and set to take place in April.Other companies targeted in mortgage-related pay-to-pay lawsuits include Lakeview Loan Servicing and its subservicer, Loandepot and Bank of America.

It’s official. United Wholesale Mortgage (UWM) is the nation’s largest mortgage lender.The Pontiac, Michigan-based wholesale lender took the top spot for all of 2023 after easily beating out former #1 lender Rocket Mortgage.In total, the company funded $108.3 billion in home loans during the year, compared to Rocket’s $78.7 billion tally.Crosstown rival Rocket, based in Detroit, had been the nation’s top mortgage lender since 2018.Prior to that, Wells Fargo was the top dog, though the San Francisco bank has steadily shrunk its mortgage footprint over the years. Still, they remain in third place.UWM Generated the Most Loan Volume of Any Mortgage Lender for All of 2023Similar to their predecessors, UWM was able to beat out the rest of the competition in a quarter or two before getting to the top of the pile.But they finally mustered outright victory for an entire year in 2023, without even needing their fourth quarter production of $24.4 billion. That’s pretty impressive.Of course, it wasn’t all good news. The company still saw production fall year-over-year from $127.3 billion in 2022.And they lost money last year as well. UWM recorded a net loss of $69.8 million in 2023, compared to $931.9 million of net income in 2022.Though UWM Chairman and CEO Mat Ishbia said they are “operationally profitable,” and that the loss was the result of MSR markdowns related to interest rate movements.Given how difficult of a year it was for the mortgage industry, they’re probably happy to be where they’re at.They also saw annual gains in the jumbo loan and non-qualified mortgage product category, which includes newly-launched home equity lines of credit (HELOCs).UWM Claims Top Spot Despite Being a Wholesale-Only LenderWhat is perhaps more remarkable about UWM’s ascent to the top is the fact that they only work in the wholesale channel.This means they don’t have any retail operations, and instead rely upon mortgage brokers to bring business to them.So if you want to work with them, you have to go through a mortgage broker first.Meanwhile, many other mortgage companies, including Rocket, have both retail and wholesale operations.So this speaks to the tremendous push UWM has made to get to #1, and also the rise in the mortgage broker share in general.Back in the early 2000s, mortgage brokers were blamed for the housing crisis that transpired. Today, it seems they are back in full force.And it’s not just mortgage refinancing that got them to peak position. It’s mostly purchase lending, which is typically more personal and close to home.Ishbia also noted that the company was the number one wholesale lender for the ninth year straight.In case you weren’t aware, he also recently purchased the Phoenix Suns and Mercury.UWM Is the Nation’s Leading Home Purchase Lender TooLately, the mortgage market has been decidedly purchase-driven. With mortgage rates closer to 7% than 3%, very few borrowers are refinancing.Despite this shift, UWM was able to capture a record $93.9 billion in home purchase loans during 2023.This total alone was more than enough to beat out the second largest lender, excluding their refinance business.That meant their purchase business did much of the heavy lifting, accounting for nearly 87% of overall loan origination volume.And such business increased from $90.6 billion in 2022, $87.3 billion in 2021, and $42.9 billion in 2020.Meanwhile, mortgage refinance volume totaled just $14.4 billion during the year, down from $36.5 billion a year earlier.Assuming mortgage rates improve going forward, UWM could see their production increase markedly.With regard to 2024, they anticipate first quarter production to range from $22 to $28 billion, compared to $24 billion in Q1 2023.So it sounds like they’re going to stay atop the rankings for a while, though if Chase wanted to, it could probably make a push as well.I should have a complete list of the top 2023 mortgage lenders soon.

UWM Holdings took a loss on a GAAP basis for both the fourth quarter and full year 2023 resulting from a large mark-to-market hit to the values of its mortgage servicing rights.But the company emerged as the nation's no. 1 lender not just in overall and wholesale production, but in terms of purchase mortgage originations.Its fourth quarter purchase production of $20.68 billion topped Rocket's total fourth quarter closed loan volume of $17.26 billion. United Wholesale Mortgage's total volume of $24.4 billion for the period was lower than $29.7 billion UWM reported in the third quarter and $25.1 billion during the fourth quarter of 2022.The servicing mark of $634.4 million turned the company from an operating profit as measured by the non-GAAP metric of adjusted EBITDA of over $99 million to a net loss of $461 million.The fourth quarter net loss compared with net income of $301 million in the third quarter and a fourth quarter 2022 net loss of $62.5 million.UWM missed consensus estimates in terms of operating earnings, but was "largely in line" with Keefe, Bruyette & Woods, Bose George said in a flash note put out before the earnings call.The volume numbers beat George's expectations of $24.2 billion, as did the gain on sale margin of 92 basis points; George had predicted 90 basis points.For the full year, UWM lost on a GAAP basis $69.8 million in 2023, as compared with $931.9 million of net income one year prior. The 2023 loss was driven by an $854.1 million MSR value hit."With respect to MSRs, unlike some of our competitors, we have not historically specifically hedged the MSR portfolio," said Andrew Hubacker, chief financial officer, during its earnings call. "Rather, we maintain our portfolio at levels such that we are confident that fair value impacts due to interest rate declines will over time, be more than offset by an increase in origination income."So instead, UWM uses MSR sales as the "most efficient" way to hedge the portfolio, Hubacker continued.Not using a financial hedge means that when rates go down, as they did for most of the fourth quarter, MSR values decline. The flat-to-rising rate environment of recent weeks means that UWM has recaptured some of that, Mat Ishbia, chairman and CEO explained later on in the call.UWM's production volume is also affecting the MSR valuation. "The truth is we have a bigger write-down or write-up than other people, because we're the only one actually originating loans at these rates," Ishbia said. "We actually did loans in the third and fourth quarter when everyone else didn't."When asked about servicing recapture rates, Ishbia reiterated UWM's policy which states that the borrower is the broker's client. He also took a dig at other lenders, including rival Rocket Mortgage by name, saying those firms have been taking the borrowers away for years and that was the wrong thing to do.When asked how the real estate broker fee lawsuits are affecting mortgage brokers' business, Ishbia said both professions are tied at the hip. He said the cases "[create] opportunity for the best real estate agents, the best [mortgage] brokers to take advantage of it and create a new opportunity to grow their business. Just like years ago [loan officer] comp changed in the mortgage market, brokers were supposedly gonna lose comp and brokers actually thrived because of it."So I look at these things as opportunities," Ishbia said.Ishbia said the company was coming "off the bottom" in the first quarter regarding forecasting UWM's margins, to between 80 basis points and 105 basis points, and total volume between $22 billion and $28 billion."We still think there's room for margin expansion in response to larger and more sustained drops in interest rates," BTIG analyst Eric Hagen said in a note issued following the call. "Lenders could potentially benefit from a window of bargaining power while capacity catches up to demand, although right now we think odds are low that mortgage rates can rally meaningfully while [mortgage-backed securities spreads in the secondary market are somewhat biased to remain near historical wides."Hagen expects for the full year, UWM to do more than its total volume of $108 billion in 2023. "The wide range for volume this quarter is understandable given the rate environment, including some higher propensity for loans to fall out of the pipeline because of the volatility."