The mortgage business is one of the most cyclical businesses out there. In 2021, mortgage bankers feasted on easy refinances courtesy of Federal Reserve policy to keep rates near zero to support the economy. Mortgage bankers have been fighting to secure their piece of a shrinking pie as 2022 progresses, and virtually every big banker is reporting declines in origination volume.
UWM Holding, PennyMac Financial Services and Sixth Street Specialty Lending have been highlighted in this Industry Outlook article.
Despite a rise in mortgage rates and falling origination volumes, PFSI, UWMC and TSLX are likely to hold ground on robust servicing opportunities and technological enhancements.