Buyback volumes in the mortgage industry are currently elevated compared to pre-pandemic levels, although they remain below their peak in 2022. This trend is proving to be a significant challenge for credit unions, banks, and independent mortgage bankers. The added costs associated with buybacks are compounding existing financial struggles, with these institutions already facing average pre-tax losses of $534 per loan origination.
Key points:
– Buyback volumes in the mortgage industry are still high compared to before the pandemic
– Credit unions, banks, and independent mortgage bankers are particularly impacted
– These institutions are facing average pre-tax losses of $534 per loan origination
– The added costs of buybacks are exacerbating financial challenges in the industry.
You can read this full article at: https://www.housingwire.com/articles/lenders-must-address-repurchase-risk-before-they-go-bust/(subscription required)
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