cnbc.com/2022/08/05/-santanders-tim-wennes-a-shakeout-among-mortgage-lenders-is-coming.html
Santander left the mortgage business in February as part of a strategic pivot to focus on higher-return services. JPMorgan Chase and Wells Fargo have cut mortgage staffing levels to adjust to the lower volumes. Smaller nonbank providers are reportedly scrambling to sell loan servicing rights or even merge or partner with rivals.

Banks and other mortgage providers have been battered by plunging demand for loans this year. Some firms will be forced to exit the industry entirely as refinance activity dries up. Santander announced its decision to drop the product in February. "We were a first mover here and others are now doing the same math"

The mortgage business boomed during the first two years of the pandemic. The industry posted a record $4.4 trillion in loan volumes last year, including $2.7 trillion in refinance activity. But surging interest rates and home prices that have yet to decline have put housing out of reach.

Santander is part of a Madrid-based global bank with operations across Europe and Latin America. The bank has about $154 billion in assets and 15,000 U.S. employees. JPMorgan Chase and Wells Fargo have cut mortgage staffing levels to adjust to the lower volumes.

Nonbank providers are reportedly scrambling to sell loan servicing rights. "The sector was as good as it gets" last year, said Wennes, a three-decade banking veteran. "We looked at the returns through the cycle, saw where we were headed with higher interest rates," he said.
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