Who has the biggest fork?

Lenders are still reporting record volume in Q1. But margin pressure is taking its toll and if projections hold, less sunny days lie ahead.

Was this newsletter forwarded to you? Sign up here. Good afternoon —   The first quarter of 2021 may be the last hurrah of 2020's origination boom. First-quarter earnings are rolling in and, as expected, lenders are still reporting record volume. But margin pressure is taking its toll and if Rocket's projections hold, less sunny days lie ahead.   Rocket had a great 1Q, originating $103.6 billion, which is more than double what it did in 1Q of 2020. And it reported net income of $2.77 billion and $4 billion in revenue, both dramatically up from the first quarter a year ago.   But…   For the second quarter, Rocket is forecasting volume could shrink to between $82.5 billion and $87.5 billion. And gain on sale margins are projected to slip to between 2.65% and 2.95%.   And it's not just Rocket.   LoanDepot reported a closed loan volume of $41.5 billion in 1Q. But net income and revenue were both down from the fourth quarter. Part of that decline was a result of the lender's IPO, but part of it, as CEO Anthony Hsieh noted, was that "Competitive pricing strategy pressure from other market participants also had a market-wide impact on margins."   Going forward, the growth strategy for lenders, big and small, will depend on taking a bigger share of the ever-shrinking pie, including the tasty wholesale piece. We'll be keeping an eye on who has the biggest fork.   Until tomorrow —   Sarah Wheeler HousingWire Editor in Chief How the end of mortgage forbearance impacts the market    Today's HousingWire Daily features an interview with Constant AI President and COO Carissa Robb. In this episode, Robb discusses mortgage forbearance and how the U.S. housing market will be impacted once moratoriums come to an end. Listen now Mortgage rates remain under 3% for third week in a row    For the third consecutive week, mortgage rates managed to remain under 3%, dropping three basis points last week to an average of 2.96%, per Freddie Mac. Looking to increase production and recapture more business? Data shows only 18% of refi borrowers stay with a servicer. Boost retention and recapture with Black Knight's Capture℠ lead analytics platform. The solution helps you identify actionable leads and outperform competitors. Get Started → Sponsored by Black Knight Bay Area team bolts Compass for Side    Another group of California agents has left Compass for Side, this time in the luxury, coastal environs of Marin County. How lenders can prepare for growing fraud threats   HousingWire recently spoke with Jeffrey Morelli, general manager at Truework, about what lenders can do to prepare for and overcome the growing threat of fraud and data inaccuracy. Presented by Truework HousingWire, 433 East Las Colinas Blvd., Suite 830, Irving, TX 75039, (469) 893-1480 Unsubscribe Manage preferences

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