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Intercontinental Exchange's mortgage technology business continues to report operating losses, although the first quarter results were an improvement over the comparable periods.Servicing business drove improved resultsThe segment lost $27 million for the quarter, using GAAP accounting, compared with an operating loss of $36 million in the fourth quarter and $48 million for the same period last year.It is the 10th consecutive quarter, and 11th out of the last 12 quarters in which the mortgage technology segment has an operating loss.ICE also reports a pro forma metric that makes an assumption the company has owned Black Knight since 2021, rather than the actual September 2023 completion date. Using those computations as adjusted pro forma operating income, the unit made $203 million in the first quarter, up from $177 million three months prior and $185 million a year ago.The year-over-year improvement was largely driven by the servicing business, Warren Gardiner, Intercontinental Exchange's chief financial officer said on the earnings call."While we benefited from $2 million of one-time revenue that we do not anticipate will repeat, growth was also driven by new customers implementing on MSP," he continued."Transaction revenues totaled $113 million, up slightly year-over-year, driven by revenue growth related to Encompass closed loans and applications, an increase in closing solution fees and higher default management revenues as foreclosure starts within our servicing business have begun to tick higher from historic lows."Rocket-Mr. Cooper deal brings future headwindsDuring the quarter and into April, ICE had several big wins for its platforms but also had to prepare for the loss of a large client.Rocket Cos., when it completes its acquisition of Mr. Cooper, will be bringing its servicing portfolio to Sagent. Mr. Cooper owns 20% of Sagent.But at the end of April, United Wholesale Mortgage announced it is bringing the servicing function in-house and is licensing the MSP platform. It had been using Mr. Cooper as a subservicer prior to the Rocket news. A Keefe, Bruyette & Woods note after the Rocket/Mr. Cooper deal was announced said the shift to Sagent could "negatively impact ICE's servicing revenues" by approximately $30 million using a $10 per loan assumption for the 2.8-million-unit portfolio.Taking a dig at the competitionICE Mortgage Technology added 20 new Encompass loan origination system clients, as well as the addition of UWM, "a significant new MSP client," said Ben Jackson, Intercontinental Exchange president and chairman of ICE Mortgage Technology.In what might be considered to be a subtle dig at Rocket/Mr. Cooper/Sagent, Jackson said over the past decade, the company looked to build a life-of-loan platform "operated by a trusted, neutral third party." He later used the phrase "our neutral platform" during the presentation and brought the topic up again during the Q&A portion of the call.A questioner asked how ICE sees Rocket's business strategy, comparing that with what it does across the mortgage lifecycle from consumer marketing to secondary marketing and recording.Jackson, while not directly mentioning Rocket, responded "the headline is that it's a validation of our strategy."Gardiner added Flagstar's servicing portfolio, which the bank sold to Mr. Cooper and is being switched to Sagent, was about 1% of the unit's revenues and Rocket is a little less than 3%.Rocket isn't leaving right awayRocket recently signed a multiyear contract, "so in the event they even do choose to move off of MSP, just be clear that it's going to take a couple of years," Gardiner said. "And there's no change to this year's guidance as a result of any of that." But the impact of what had been the Flagstar MSRs leaving should start to be felt by the end of 2025, he continued.UWM also referred to ICE as "an independent, neutral and proven technology provider" in its statement on the agreement."They're already in our ecosystem and it was a cross-sell to bring them onto the MSP platform," Jackson added during the call.

Last year marked yet another year where high debt-to-income income ratios were the leading cause of denial for mortgage applicants.While a low credit score can also be a significant factor, often it might just lead to a higher mortgage rate.That means you can still get approved for a home loan with marginal credit, but it’ll be more expensive.In other words, you want to focus on keeping your other liabilities as low as possible when applying for a mortgage.Interestingly, this should actually help your credit score in the process as well!High DTIs Top Reason Mortgages Are DeclinedIn 2024, the top reason mortgages were declined was due to an elevated debt-to-income ratio (DTI).This was the case across all types of applications, according to a new study from iEmergent.And it has been a continuous trend, “increasing steadily from 32% in 2020 to 39% in 2023,” though there was a slight drop to 37% in 2024.This didn’t come as much of a surprise given the increase in both home prices and mortgage rates in recent years, not to mention rising property taxes and homeowners insurance costs.Long story short, the higher the mortgage payment, the higher your DTI ratio, all else equal.The second leading cause of denial was credit scores, aka low ones.Lenders have minimum credit score thresholds, but they are often quite liberal.As a result, you can get approved for a mortgage with the score as low as 620 for Fannie Mae and Freddie Mac.And even get approved with a score below 600 for other types of loans such as an FHA loan.When it comes to DTIs, the guidelines are a little more gray and flexible.Instead of a hard cut off, you might see a range that factors in income, assets, down payment, etc.It’s more of a holistic view of total risk, which may allow DTIs to go higher if you have compensating factors.For example, Fannie Mae generally allows DTIs as high as 45%, but up to 50% if you have lots of liquid reserves, or a strong credit history.A good way to look at this is that you can get away with a low credit score, but you might be locked out entirely if you’re DTI is too high.DTIs and Credit Scores Are Within Your ControlWhile some might throw their hands up and say it’s not fair, or that these things are outside their control, it’s simply not true.Both of these variables are within your control. Whether it’s paying bills on time or limiting your outstanding credit balances.What’s also interesting is DTIs and credit scores go hand-in-hand as well.Someone with more outstanding revolving debt will likely have a lower credit score, all else equal.But you’re more likely to get denied outright if you have a high DTI than you are a low credit score.What this means is you should pay close attention to your monthly liabilities when determining how much you can afford.Two borrowers with the same amount of income aren’t necessarily created equal if they have different amounts of outstanding debt.For example, a borrower with a $600 car lease payment versus a borrower with a paid off vehicle.If you have $600 less per month available for a mortgage, it will lead to a higher DTI ratio.As noted, this can also have the unintended consequence of lowering your credit score as well.In a nutshell, the credit bureaus will view you as more risky if you have more outstanding revolving debt (or installment debt for that matter).A best-case scenario for a mortgage applicant would be having little to no revolving debt.This would mean all or most of their monthly income could go towards the home loan obligation instead.And this would lead to a lower DTI ratio, which would boost their approval odds.The beauty of this is these things are intertwined so if you do well to limit debt, you can also enjoy a higher credit score.So if you’re a perspective home buyer, or someone looking to refinance an existing mortgage, paying close attention to your DTI can help your credit score as well.Two Borrower’s Incomes Might Not Be Created EqualThis also explains why it’s difficult to provide a universal answer when people ask how much house can I afford?As noted, two people at the same exact income level will be able to afford different loan amounts based on their other, non-housing related debt.Your DTI ratio is actually two numbers, a front-end ratio for your proposed housing payment, and a back-end ratio that includes all monthly debts.If you’re able to keep all the other stuff low, whether it’s an auto loan or credit card debt, you’ll have more income available for your mortgage.Bringing it all together, less debt typically results in a higher credit score, which in turn results in a lower interest rate on your mortgage.And by definition, that gives you a lower housing payment, which would further lower your DTI. You see how it’s all connected?So the two biggest things to pay attention to if you want to qualify a mortgage are your DTI and your credit score. But your DTI can dictate your credit scores, meaning putting even more emphasis on that.Aside from saving for a down payment, you should also pay down any other outstanding debt to increase your home purchasing power (if necessary).Doing so should increase your odds of getting approved for a home loan.While there are many other reasons you can get declined for a mortgage, these are the leading causes and they should be your focus.Keeping a close eye on these issues will ideally help you avoid any unwanted surprises once you do apply.(photo: Joel Kramer) 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)

Mortgage rates declined again this week, tracking movements in the 10-year Treasury yield, as the broad swings over macroeconomic news (particularly the tariff tantrum) have calmed, at least for the moment.The 30-year fixed rate mortgage averaged 6.76% May 1, according to the Freddie Mac Primary Mortgage Market Survey. It is down from last week's 6.81%, while a year ago at this time, the 30-year FRM averaged 7.22%. The 15-year FRM had a smaller drop, down 2 basis points to 5.92%, from last week when it was 5.94%. For the same week in 2024, the 15-year FRM averaged 6.47%.Is the market finally stabilizing?"Although the changes are modest, they indicate a potential stabilization in the mortgage market following recent volatility," said Samir Dedhia, CEO of One Real Mortgage, in a statement.After peaking at 4.41% on April 21, the 10-year Treasury yield has retreated significantly, closing at 4.17% on April 29 before slightly moving back up to 4.2 as of 11 a.m. Thursday morning."Mortgage rates again declined this week," said Sam Khater, Freddie Mac's chief economist, in a press release. "In recent weeks, rates for the 30-year fixed-rate mortgage have fallen even lower than the first quarter average of 6.83%."The movements were in line with other rate trackers.What other trackers are reportingAt that time Zillow's rate tracker for the 30-year FRM was at 6.88%, down 10 basis points from the previous week's average of 6.98%.Lender Price product and pricing engine data on the National Mortgage News website had the 30-year FRM at 6.76%, 15 basis points lower than 6.91% one week ago."The recent fluctuations in mortgage rates have been influenced by various factors, including investor reactions to proposed tariffs and their potential impact on inflation," Dedhia said."While rates have edged down this week, the broader economic landscape remains uncertain, and future rate movements will likely depend on developments in trade policy and inflation trends."A respite for borrowers, for nowMortgage borrowers are getting a small respite, Kara Ng, senior economist at Zillow Home Loans, said in Wednesday evening comment."Markets digested a GDP report that showed the U.S. economy contracted in the first quarter," Ng said. "The Conference Board Consumer Confidence survey descended further for April, to the lowest level since the pandemic."Add into this an ADP employment report that showed that private employers added only 62,000 jobs in April, half of what was expected by economists, as they await the Bureau of Labor Statistics data due out Friday.Lower rates don't help application activityOn Wednesday, the Mortgage Bankers Association reported application volume decreased 4.2% from the prior week seasonally adjusted as measured by its Market Composite Index. Both refinancings and purchases were down 4%."Mortgage rates were little changed last week with the 30-year fixed rate at 6.89," said Joel Kan, the MBA's vice president and deputy chief economist, in a press release. "Mortgage application activity, particularly for home purchases, continues to be subdued by broader economic uncertainty and signs of labor market weakness, dropping to the slowest pace since February."Kan was referring to the conforming rate, which was down 1 basis point from the previous week.The jumbo 30-year FRM fell two basis points for the period ended April 25, to 6.88%, but for Federal Housing Administration-insured mortgages, it rose to 6.61% from 6.56%.Rates on the 15-year FRM fell to 6.17% from 6.2% while for the 5/1 adjustable rate mortgage, it slipped to 5.89% from 6.01%.These falling rates could add "some oomph" to home sales, said Holden Lewis, home and mortgage expert at NerdWallet, in a comment on the MBA Application data."It's good timing, as homebuyers typically are busiest from mid-April to mid-May," Lewis said. "Buyers were thwarted by an increase in mortgage rates in the first half of April, and this week's decline might have provided enough relief to boost more sales."

Freddie Mac recorded first-quarter earnings that inched up from a year ago as its chief financial officer delivered his take on what regulatory cost-cutting measures could mean for the business.The government-sponsored enterprise reported that quarterly net income exceeded year-earlier numbers by 1% at a little over the $2.8 billion it reported at that time, and experienced a seasonal decline from $3.2 billion the previous quarter.Freddie's larger competitor, Fannie Mae, had reported $3.7 billion in first quarter earnings the day before. Like Fannie, Freddie recorded a provision for credit losses largely tied to its single-family business line. Freddie's provision was $300 million.Chief Financial Officer Jim Whitlinger called the latest quarterly numbers a "solid performance" that could improve as Bill Pulte, the Federal Housing Finance Agency's director and chairman of both Fannie and Freddie's boards, has focused on efficiency measures."Many of you are closely following the announcements and orders issued by Director Pulte, and what those mean for Freddie Mac. Director Pulte has helped us streamline our business," he said.Whitlinger confirmed several initiatives Pulte had delivered information about on social media or interviews (but had not necessarily disseminated through what traditionally have been official FHFA information channels), including moving "thousands" of employees into the office full-time. "He has eliminated activities not central to Freddie Mac's mission as well as requirements that make it more expensive to finance a loan, which might provide little tangible benefit to the majority of American renters and homebuyers," Whitlinger added. "We support actions he has taken to drive fraud and waste out of the U.S. housing finance system. We expect the savings associated with FHFA's new direction to reduce expenses in 2025 and beyond."Freddie fulfilled its mission during the quarter by helping 313,000 families buy, rent or refinance a home, with 52% of single family loan purchases supporting first time home buyers and 92% of the eligible rental units financed affordable to middle income renters, Freddie's CFO said.Single-family loan acquisitions rose on a consecutive-quarter basis to $78 billion from $74 billion. A year ago, Freddie reported acquiring $62 single-family mortgages in the first quarter.Net revenues in single-family were up 10% from the prior-year quarter, Whitlinger said. This was primarily due to mortgage portfolio growth that fueled an increase in net interest income. The portfolio totaled $3.1 trillion at the end of the quarter, up 2% year-over-year.Freddie's total number in that category was about roughly 1% below what analysts had generally anticipated, according to S&P Capital IQ. Somewhat like Fannie's stock had reacted a day earlier, Freddie's shares initially rose in as its earnings report and call proceeded, but then declined. Freddie's stock had been in a trading range between $5.18 and $5.21 at deadline.Earnings Freddie Mac can retain rather than return to the Treasury to prepare it for an eventual exit from government conservatorship increased the GSE's net worth to $62 billion from $59.58 billion the previous quarter.While the GSEs have been allowed to retain some earnings, they can't count the Treasury's preferred stock as regulatory capital, and that could be a challenge in efforts to accommodate a release in which it can be compared to private market peers, analysts at BTIG noted."We view the regulatory capital requirement as overly punitive relative to the embedded risk in the GSE portfolios, and therefore expect either the capital requirement needs to get lowered, or guarantee fees get raised to support a competitive return," they said in a recent report.Single-family credit quality remained strong during the quarter, according to Whitlinger, who said the weighted averages were 52% for the current loan-to-value ratio and 754 for the credit score, "The single family serious delinquency rate remained low at 59 basis points, unchanged from the prior quarter, and up seven basis points from the prior year quarter," Whitlinger said.He primarily attributed the 12-month increase to a higher serious delinquency rate for loans originated during and after 2022 and lingering impacts from hurricanes that occurred late in 2024.Mike Hutchins, who has been acting president and CEO since a FHFA directed board and management shakeup, did not speak on the call. Nor did Pulte, who had made an unusual appearance on Fannie's earnings call.Democrats have called upon Pulte to justify the legality of recent personnel changes and provide increased transparency around long-term goals.

The next generation of loan officers has yet to take their place in the mortgage industry, according to this year's Top Producers survey. The younger generation's absence among loan officers is critical for a society that is getting younger and more diverse.Approximately half of the respondents are between 41 and 50 years old, with another 30% even older. Only 18% were between 31 and 40, with just 2% between 20 and 30.While this sample is not exactly random, it is fairly representative of what has been reported as the age disparity among loan officers.A disparity in experienceWhen it comes to experience, the largest bucket of producers are those who've been in the industry between 21 and 25 years, approximately 30%. Another 13% have 26 to 30 years, with 11% having worked more than 30 years.On the other side of the scale are people who have six to 10 years of experience, 20%, with 12% being in the business between 11 and 15 years. However, whether because the person was terminated at their previous company, decided to move on because the lender no longer met his or her needs or changed jobs because of compensation, the data around tenure at their current firm told a different story.Just under three out of 10 were at their first year working at their current employer, with another 24% between two and five years. A mere 4% had over 20 years at the same workplace.This year's No. 1 producer, Shant Banosian, was recently promoted to president of Rate. With 13 years working for the former Guaranteed Rate, it puts him squarely in the third largest grouping, those between 11 and 15 years at the same originator.Banosian is the only originator in this year's survey with over $1 billion in annual production. Even with his new duties, Banosian plans to remain an active originator.Why loan officers stay or goIn several cases, tenure for loan officers and/or their branch is determined by what their company does or doesn't do for them.Kevin Frawley, who is a senior loan officer at First Heritage Mortgage, ended the year outside the top 250.He moved to a new company, which allowed for more of a file work emphasis on the assistants and processing team, "allowing us to spend more time in business development," his submission said."This allowed me to add a few new top producers to my roster in 2024," Frawley commented in a response to one of this year's survey questions. "We are always working to refine our process allowing us, the LO, to focus more on bringing in business and training up our team to be ready to support the new lines of business (builders and investors, non-QM mortgages, etc.)"Lynn Chenaur-Bridges is an area sales manager for Bay Equity Home Loans, a subsidiary of Redfin, which after the survey period closed, inked a deal to merge with Rocket."My company did a great job marketing for me but I plan to take a more active role in my own marketing in 2025," said Chenaur-Bridges, who finished 2024 ranked at 250. She is a 40-year veteran of the mortgage business, who has been at Bay Equity for 13 years.Cornerstone Home Lending invested in artificial intelligence to enhance originator efficiency and streamline workflow, said Reece Dinkins, a loan officer ranked 55th on this year's list."I've found it to be a valuable tool for eliminating time-consuming tasks, allowing me to focus more on building personal relationships and driving business growth," Dinkins said, who has been at Cornerstone for all nine years he's been in the industry, according to his entry.Another Bay Equity senior loan officer, Eva Mtaza, commented "AI is new and there is much to learn about how it can be a positive influence on my day-to-day work.  As of yet, I feel it creates cold, impersonal approach that isn't right for my approach to my clients."She ranked 184th, and is a nine-year veteran of the industry who has been with Bay Equity for two years.The Top Producers survey has been in existence for 27 years and is the successor to those conducted by Broker magazine and Origination News (former National Mortgage News sister publications) as well as Mortgage Originator Magazine, for which Arizent owns the content rights. Submissions were made by the participants or their representatives. The information was verified to the best of our ability but National Mortgage News cannot claim the absolute veracity of the data. Some entries might have been removed due to submission errors or following the check on the data.

The uncertainty and volatility that is affecting the mortgage origination market is spreading into the servicing side of the business and it is making it difficult for rights owners to determine their strategy for 2025, SitusAMC said.Mark Garland, managing director, MSR pricing and analytics at SitusAMC, used a comparison which described holders of those assets as being scared."I think the industry is feeling a bit like a deer in headlights," Garland said in a white paper. "How do you manage assets? What's happening with the regulatory environment?"The company values approximately $8 million in mortgage servicing rights every month and was a part of 43 transactions with $74.8 billion of unpaid principal balance last year.Making decisions around selling and purchasing MSRs is challenging in any environment, as the market for these assets is opaque and most lenders have "interconnected webs" between their origination and servicing operations.Mortgage origination volatility ripples through MSR marketIn Garland's view, where interest rates and mortgage origination volume end up over the next 12-to-18 months, is the so-called "million-dollar question" affecting servicing.Both Fannie Mae and the Mortgage Bankers Association increased their volume outlooks for 2025 in their April forecasts compared with March. While MBA put out a higher outlook on rates — with the trade group predicting those averaging 7% for the current period — Fannie Mae now expects them to end the year at 6.2% and 2026 at 6%.Whatever happens with production will impact servicers."Volume is everything," Garland said. "Volume is going to be the issue that will keep people in the business or drive them out."Normally, origination and servicing profitability move in opposite directions, creating the so-called natural hedge. In fact, 2024 was a rare year where both made money for the independent mortgage bankers who participated in an MBA study.Servicing bets hinge on duration and luckDuration is the bet MSR investors make for this asset, Garland said. If an investor is counting on the MSR remaining on its books for three years and it gets five, "it's enormously positive."Alternatively, if the investor bets on five years of life and only gets three, the return is enormously negative. You have an asset that could easily lose 20% to 30% of its value."There's a bifurcation in the market between borrowers who received low interest rate mortgages during the pandemic and the ones who have more recent loans and thus are likely to have a shorter duration.Among the strategies to mitigate risk is hedging, but the yield curve inversion that started in July 2022 made that both expensive and difficult.Banks are typically very disciplined around hedging strategies, but Garland feels it will be interesting to see what other MSR owners do if interest rates fall."Will they move to hedging, which has gotten tough and pricey, or will they just cross their fingers and hope the pain isn't too much?" he wrote.Rate swings could unlock dormant recapture potentialGarland noted the industry has gotten more proficient at recapture, an activity some observers feel was the motivation driving the agreement for Rocket Cos. to acquire Mr. Cooper.In the current rate environment, however, there are recapture opportunities for just between 10% and 20% of mortgages outstanding in the market overall.But if rates were to fall significantly, the market for recaptures could grow to 60% to 70%.When it comes to MSR sales during 2025, the report called it "the year of capitulation," where several firms who have weathered the difficulties of the past few years are now deciding to exit. That wearing down of rights holders includes the Rocket/Mr. Cooper deal, it continued.Furthermore, a scarcity of originations, especially for those who acquire MSRs via the wholesale or correspondent channels, or by purchasing bulk packages, are inflating prices for this asset."If you're a retail originator, you're pretty happy because that mortgage is cheaper for you to produce," Garland said.GSE shakeups and housing costs cloud MSR outlookBut the wild cards impacting the future of the MSR market are the future of Fannie Mae and Freddie Mac, as well as home affordability continuing to decline.If the Trump Administration follows through on privatizing the government-sponsored enterprises, including no longer having explicit government guarantees for investors, it is likely agency mortgage-backed securities will no longer have "AAA" ratings, reducing investor appetite for these instruments and increasing mortgage costs, and that would trickle over into the MSR side.Furthermore, a privatized Fannie Mae and Freddie Mac could limit their lending footprints and no longer serve higher-risk borrowers, further tightening mortgage credit availability, SitusAMC said."The market is opaque, and mortgage banking is deeply interconnected," Garland reiterated in the final section of the white paper. "Every decision impacts the broader platform."

The mortgage landscape is changing fast, with the two biggest players making major moves to increase their market share even more.Today, top mortgage lender UWM announced it was shifting to in-house loan servicing, a strategic change designed to recapture more repeat business for its vast mortgage broker network.The company is already the #1 mortgage lender by a wide margin, but perhaps to fend off its crosstown rival Rocket, it’s getting proactive to secure that lead.In a nutshell, bringing servicing in house will enable the company to better control its stable of existing customers and ideally sell them another mortgage in the future.If you’re an existing homeowner with a mortgage, this is a good reminder to shop around beyond the company that services your loan.Mortgage Recapture Is Top of MindIn case you missed it, back in September UWM launched a new initiative called KEEP, designed to help its mortgage broker partners drum up more business.KEEP leans on AI to continuously monitor the company’s loan database to identify any borrowers who could benefit from a mortgage refinance, or perhaps a second mortgage like a HELOC or home equity loan.This information is tailored to the borrower and includes the contact info of the originating mortgage broker so they can win the business again.The idea is to KEEP the customer for life, instead of simply providing them with one home loan and moving onto a new prospect.It’s known as “recapture” in the mortgage world, where you originate both the original loan and the new loan.It works because loans are typically sold to investors shortly after origination, meaning the broker and UWM can profit a second time, a third time, and so on.Recently, Rocket Mortgage announced plans to acquire Mr. Cooper, the nation’s largest mortgage loan servicer, for this very reason.Rocket knows it’s good at origination (sales), so acquiring an enormous book of business is a great way to turbocharge growth.This is especially important with lending volume a lot thinner than it used to be and new business harder to come by.And it’s probably what sparked UWM to bring its own loan servicing in house, as opposed to working with sub-servicers like Mr. Cooper.It’s no coincidence they severed their agreement with Mr. Cooper in early April, just days after the Rocket announcement.Going forward, UWM wants full control of the loans it originates on behalf of its fleet of mortgage broker partners.Similarly, Rocket is basically bringing loan servicing in house as well via its Mr. Cooper acquisition.Stronger, Stickier Relationship with Mortgage BrokersIn the news release, UWM President and CEO Mat Ishbia heralded the move as “a huge win for UWM and, more importantly, the broker community.”He added that it will create a “better experience for borrowers and a stronger, stickier relationship with their brokers.”The idea here is that UWM will have control of that loan after it funds, instead of a third-party company holding the data and trying to originate loans itself.Without managing the servicing themselves, a company like Mr. Cooper could mine the database and use its own team of loan officers to make phone calls and “steal” that business.Going forward, UWM will be the one holding the cards, a strategy they believe will allow them to garner more repeat business and referrals, while also enjoying related cost savings.Remember, it’s harder (and more expensive) to go out and find a new customer than it is sell something to an existing one.UWM’s New Loan Servicing Portal Powered by ICEUWM’s new servicing platform will be powered by ICE Mortgage Technology’s MSP loan servicing system.It features a homeowner portal that is designed to “keep borrowers engaged through the life of a loan” via “robust retention and recapture features.”My guess is stuff that is extremely tailored to borrowers, such as emails and alerts that display their current mortgage rate, available home equity, and options to tap into it or lower payments.The portal will also incorporate loss mitigation options to assist homeowners facing hardship, including streamlined lien releases.And it’s all intended to keep you in the UWM ecosystem, instead of seeking out a mortgage elsewhere.What makes it somewhat strange is that brokers who work with UWM are independent and can theoretically send loans to any of their wholesale lender partners.So there’s no real guarantee a loan they originally sent to UWM will go back to UWM if it’s refinanced in the future.But perhaps this increases the odds of that happening. It reinforces something I’ve said time and time again; if a lender reaches out, reach out to other lenders.Be sure to put in the time to shop around to ensure you receive the best deal, whether it’s the lowest interest rate and/or fewest fees. Loyalty is great as long as it’s a good deal for you.Read on: What is Mortgage Matchup? 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)

Freddie Mac has updated its online platform to provide more transparency into a new and immediate way to resolve responsibilities for certain loan information covered by lender representations and warranties when that data is flawed."Loan Coverage Advisor users will be able to see a new selling R&W relief reason, 'Remedy Closed – Fee Only,' for loans eligible for fee remedy through various types of loan searches," Freddie recently reported. The move further establishes and increases the visibility of a repurchase alternative the government-sponsored enterprise piloted last year, which it set for a full rollout in 2025 prior to changes in federal leadership.In 2022, Republicans who now dominate in Washington had been critical of the process generally used for pilots at Freddie and Fannie Mae, saying it lacked sufficient transparency. This has raised questions about how various pilot concepts might fare under the second Trump administration. Federal Housing Finance Agency Director Bill Pulte has said he welcomes innovation and has asked the industry to share ideas with him.Freddie's repurchase alternative fee pilot was a response to lender requests for other ways to handle what otherwise were expensive demands to buy back loans when there are flaws in data, particularly on occasions when the error is minor and loans perform.Fannie also has made moves in the past year to address the mortgage industry's call for a wider range of more flexible tools to manage buybacks, such as adding a new type of notice around "potential" defects that could provide opportunities for resolution.FHFA Director Bill Pulte has said he wants to look into ways to "recall loans" when there is fraud, which could mean buybacks. But his context and industry use of the term "recall" suggests this could refer to making borrowers pay back loans if they misrepresent data.Pulte has said he views managing fraud as the key to ensuring the kind of housing crash that forced Fannie and Freddie into government conservatorship does not recur, and he has established a tipline to that end.

Onity Group touted servicing segment wins behind a profitable first quarter, with recent mergers and acquisitions and potential economic headwinds driving growth prospects for 2025.The West Palm Beach, Florida-based originator and servicer ended the first quarter in the black and said the recent deal between Rocket Cos. and Mr. Cooper should further accelerate dealmaking within the mortgage industry, which will lead to a realignment in subservicing. "M&A activity over the past 12 to 18 months amongst companies who had large concentrations of subservicing is giving rise to an increase in financial institutions exploring their options for subservicing providers," said Onity President and CEO Glen Messina in the company's earnings call. His comments echo thoughts of other home lending leaders, who alluded to coming servicing opportunities after the Rocket/Mr. Cooper deal was announced. Mortgage rates are also likely to contribute to segment profits, as it reduces the likelihood of run-off, with Fannie Mae forecasting them to remain above 6% this year, higher than recent historical levels. The Mortgage Bankers Association also predicted them to rise above 7% at some point during the second quarter. "Given the current outlook for interest rates, we expect servicing will continue to be the predominant earnings contributor 2025 with industry origination volume projected to increase modestly," Messina also said.Onity by the numbersOnity, which until last year went by the name Ocwen Financial, posted net income attributable to shareholders of $21.1 million in the first quarter, improving from a loss of $28.1 million three months earlier. The marks included one-time charges as well as portfolio valuation adjustments from rate volatility and were determined according to Generally Accepted Accounting Principles.On a year-over-year basis, earnings decreased almost 30% from $30.1 million in the first quarter 2024. Revenue came in at $249.8 million, up 11.1% from $224.8 million during the fourth quarter, and 4.5% from $239.1 million a year earlier.The company's originations arm contributed approximately $10 million on a pre-tax GAAP basis to overall profits, on par with its fourth-quarter 2024 number. New loan production totaled $7 billion.Servicing brought in pre-tax income of $33 million, down from $38 million three months earlier. The unpaid principal balance equaled $305 billion, and subservicing made up over half of Onity's portfolio. The opportunities aheadAs Onity looks ahead to opportunities, Messina pointed out the company's special servicing expertise in severely delinquent loans stood out as an area that would fuel growth in 2025's economic environment."We believe our special servicing skills are an asset that can be converted to revenue through delinquent subservicing and a recessionary cycle," he said but added that he had not seen deterioration in Onity's portfolio. "We are attacking the marketplace with passion and energy and trying to continue to grow that service," he added, referring to subservicing activity.Given its prospects, the company maintained guidance for return on equity between 16% and 18% this year. Onity's stock price, which trades on the New York Stock Exchange under the ticker ONIT, opened trading at $37 Wednesday, up 5% from the previous day's close of $35.41.The company also acknowledged lawsuits in front of it and the industry at large regarding convenience fees paid by customers for making payments by phone or online. The charges have also been referred to as "pay-to-pay" fees.Since entering office, President Trump has loosened regulatory enforcement and attempted to rescind some past legal judgments but has not made moves in regards to the pay-to-pay issue. "We and others have been defending ourselves in a number of different pending actions or inquiries regarding convenience fees, and we believe we've complied with the law in every one of those examples," Messina said. 

Brendan Coughlin, left, was named president of Citizens Financial Group. John Woods, right, is leaving the company to become chief financial officer at State Street. Citizens Financial Group's leadership team is undergoing more change, with the bank announcing the upcoming exit of its chief financial officer and the promotion of another executive to company president.John Woods, who has been Citizens' CFO since 2017, is leaving the Providence, Rhode Island-based lender for State Street, where he will become the custody bank's new CFO. Woods is expected to leave his current job in August and join State Street later that month.Simultaneously, Brendan Coughlin, Citizens' head of consumer, private banking and wealth, is now president, a title that has not been used by Citizens in the 10-plus years since it became a public company. He will retain oversight of consumer banking, the private bank and wealth, as well as marketing and enterprise data and analytics, responsibilities he inherited this winter.Coughlin joined Citizens in 2004. He and Woods, both of whom serve as vice chairs, received retention bonuses in June, having been identified as "potential medium-term CEO succession candidates." Coughlin's award was worth $12 million, while Woods' was valued at $7 million."Brendan has a long track record of strong leadership and execution against some of our most important initiatives, and he has earned the trust and respect of our stakeholders, including the board and our colleagues," Bruce Van Saun, Citizens' chairman and CEO, said in a statement. "His efforts have contributed significantly to our transformation into a top super-regional bank, and I am confident that his passion and leadership will continue to propel Citizens forward." The changes come a few months after the March retirement of longtime Citizens' executive Beth Johnson, who was the chief experience officer and also served as co-vice chair with Woods and Coughlin. Around that time, Coughlin was promoted to head of consumer, private banking and wealth and the bank hired a new head of consumer banking. Earlier this year, the company's general counsel and chief legal officer, Polly Klane, also left for another job.The job titles for Don McCree, who is Citizens senior vice chair and head of commercial banking, have not changed, a company spokesperson said Wednesday in an email.Whether or not Coughlin's new title signals a future in which he is Citizens' CEO remains to be seen. Van Saun, 67, has given no indication that he's ready to step away from the job. In an interview with American Banker last year, the CEO said he's still focused on building out business lines, increasing the company's valuation and making sure that its returns are in line with those of peers.In recent years, other large and regional banks have promoted their presidents to the CEO role. U.S. Bancorp in Minneapolis is the most recent example. Last May, the company made one of its top executives, Gunjan Kedia, its new president. Kedia took over as the bank's CEO in April.Coughlin's "star has been rising for some time" and he "has a long runway ahead of him," Scott Siefers, an analyst at Piper Sandler, wrote in a research note about the changes."Put more simply, he is young, he has been integral in virtually all of [the company's] major strategic initiatives, and he runs big and important businesses," Siefers said.Coughlin has played a key role in expanding Citizens' consumer franchise into new markets. He has also been involved in launching the bank's merchant point-of-sale financial partnerships with Apple and Microsoft, and since 2023 he has played a large role in building the company's private bank.He came to Citizens from Bank of America, joining the company nearly a decade before Van Saun arrived in 2013. Woods had been recruited by Van Saun to join Citizens. At the time, he was working as the CFO at MUFG Americas Holding Corp., which operated MUFG Union Bank in San Francisco. Woods is now the second Citizens CFO to leave for State Street. Eric Aboaf, his predecessor at Citizens, also left for the Boston-based custody bank. In February, Aboaf left State Street to become CFO at S&P Global.At State Street, Woods will succeed Mark Keating, who has been serving as interim CFO since February, State Street said in a press release. Woods will report to CEO Ron O'Hanley."John brings considerable expertise to State Street across a range of global and highly regulated businesses," O'Hanley said in the release. "His nearly four decades of financial experience including strategic enterprise transformation, financial oversight and risk management programs will further strengthen our organization as we deliver on our long-term vision for shareholders."Citizens said Wednesday that it will consider both internal and external candidates for the CFO job.Turnover among bank CFOs picked up last year as banks faced retirements and burnout scenarios, as well as heightened regulatory pressures and profitability challenges due to higher interest rates — a situation that left several regional banks hunting for their next finance chiefs.The management changes at Citizens shouldn't distract the company from its strategy or its longer-term financial goals, Terry McEvoy, an analyst at Stephens Research, told American Banker."This is a very large regional bank with thousands of employees striving to achieve those financial goals," McEvoy said. "So the foundation is in place to continue to move toward the path of profitability they've talked about for quite some time."