"Six companies had their ratings affirmed, with the exception of Planet Financial Group, whose rating was downgraded to B from B+. The outlook for Provident Funding Associates improved from stable to positive, while UWM's outlook shifted to stable from positive. FOA received a positive outlook. These affirmations reflect continued franchise strengthening of the largest mortgage companies as the market has consolidated over the last three years, Fitch said in its report."
"The top 10 originators held 43% of total production from January through September 2025, up from 41% in 2024 and 38.5% in 2023, per Inside Mortgage Finance. Fitch expects profitability to improve in 2026 on the back of lower mortgage rates and higher origination volumes, following a 37% reduction in industry employment since the 2021 peak. Fannie Mae forecasts $2.3 trillion in originations in 2026, a 21% year-over-year increase."
"Fitch noted that corporate leverage rose across the group due to increased MSR investments. Companies are positioning to capture more refinance loans if rates fall toward 6% a threshold above which $2.7 trillion in outstanding mortgages sat in the second quarter, according to the Federal Housing Finance Agency (FHFA). Non-funding debt to tangible equity averaged 2.1x in Q3 2025 (excluding FOA, which is an outlier), up from 1.7x at the end of 2024."
Six companies had ratings affirmed while Planet Financial Group was downgraded to B from B+. Provident Funding Associates moved to a positive outlook, UWM shifted to stable from positive, and FOA received a positive outlook. Market consolidation strengthened the largest mortgage franchises, with the top 10 originators capturing 43% of production through September 2025. Profitability is expected to improve in 2026 due to lower mortgage rates and higher origination volumes. Corporate leverage rose from increased MSR investments, non-funding debt to tangible equity averaged 2.1x in Q3 2025, and unsecured debt issuance expanded, improving flexibility.
Read at www.housingwire.com
Unable to calculate read time
Collection
[
|
...
]