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Mad M&A
By Jeff Walton & Kelly Guest
Table of Contents
Call it ping pong or whack-a-mole, but offers keep popping up and getting shot down in the Two Harbors, United Wholesale Mortgage and CrossCountry acquisition saga. There’s a hearing scheduled for today on a temporary restraining order to block tomorrow’s scheduled vote, thanks to a lawsuit filed by a TWO shareholder that claims disclosures about the CCM offer were misleading.
CHATTER
Warshed Away: Kevin Warsh Confirmed by Senate 54-45 to Replace Powell
Flat Out
MBA says IMB Profits Flat in Q1
Independent mortgage banks (IMBs) and mortgage subsidiaries of chartered banks reported a pre-tax net production profit of $727 on each loan they originated in the first quarter of 2026, compared to a net production profit of $674 per loan in the fourth quarter of 2025.
The average pre-tax production profit was 16 basis points (bps) in the first quarter of 2026, compared to profit of 17 bps in the fourth quarter of 2025. The average quarterly pre-tax production profit, from the first quarter of 2008 to the most recent quarter, is 39 basis points.
The average production volume was $621 million per company in the first quarter, down from $643 million per company in the fourth quarter. The volume by count per company averaged 1,729 loans in the first quarter, down from 1,973 loans in the fourth quarter.
Total production revenue (fee income, net secondary marketing income, and warehouse spread) increased to 353 bps in the first quarter, up from 340 bps in the fourth quarter. On a per-loan basis, production revenues increased to $12,626 per loan in the first quarter, up from $11,776 per loan in the fourth quarter.
MBA Reacts to Revised 21st Century ROAD to Housing Act:
“The refinements have resulted in a package that MBA is pleased to support. These include important changes to provisions that could have produced significant unintended consequences for rental housing and mortgage underwriting operations, while keeping in place several key measures to boost housing supply, expand access to small-dollar mortgage lending, and improve the efficiency of our housing finance system.
“MBA urges strong bipartisan House passage next week and will continue to engage with the Senate and the Trump administration to secure a final package that gets signed into law as soon as possible.”
Back to Payment Reality
Pandemic Relief for FHA Borrowers is Over - NMN
Foreclosures of FHA-backed loans jumped 28% in the first quarter compared with a year earlier, after the Federal Housing Administration put an end to Covid-era forbearance and relief programs on September 30.
Thousands of borrowers face massive balloon payments, negative equity and soaring taxes and insurance payments as pandemic-era relief options are exhausted.
Will the Suit Hold Up?
Rocket Sues UWM Over Solicitations - HW
Rocket Mortgage has filed a lawsuit against United Wholesale Mortgage (UWM), claiming the rival intentionally breached contractual non-solicitation obligations it owes to servicer Mr. Cooper Group.
Even More AI: Newrez Launches AI Agent in ChatGPT
Newrez becomes the first top 10 mortgage originator to launch a consumer-facing custom GPT.
Consumers get instant, no-pressure answers grounded in Newrez underwriting guidelines and tailored to its products and lending requirements.
Available for free in ChatGPT, Rezi Mortgage Assistant meets borrowers where they naturally turn for answers.
Logan Mohtashami on “Why 2008 Can’t Happen Again” - HW
Regulations – bankruptcy reform, qualified mortgage (QM) rule, Dodd-Frank. Borrower profiles are stronger, and foreclosures and bankruptcies are still below pre-pandemic levels.
The 30-year FRM. ARMs were the big culprit in the crash.
MOVING & SHAKING
Brody Gapp launched AI Governance and Audit Practice. The firm set a Q3 2026 publication date for The Mortgage Bankers AI Governance Guide™, which was conceived by Founding and Managing Partner James W. Brody and co-authored with Founding Partner Ronald Gapp, Jr. Both initiatives debut this week at the MBA Secondary & Capital Markets Conference in New York.
Panorama Mortgage Group rebranded to SimplyPMG. The company says the moves unites Alterra Home Loans, Travisa Financial and the parent company into one.
Toll Brothers announced that Seth Ring will succeed Rob Parahus as President and CEO.
GO Mortgage launched TPO channel to replace "outdated" model: "We didn't build this to compete with what's out there. We built it to replace it. Most TPO platforms today are stitched together from years of patches, exceptions, and outdated technology. That creates friction, drives up cost, and ultimately hurts brokers. We chose not to inherit those problems." - Jay Promisco, CEO of GO Mortgage.
Sub-servicer LoanCare named Ramie Word EVP of Client Relations.
ServiceLink brought Ryan Reaves on as VP/National Sales Exec in default division expansion.
MARKET/INDUSTRY
Iran, Debt, and Deficits: We're watching for the Fed minutes this week as Kevin Warsh takes over for Jerome Powell. Bill Bodnar explains what to watch this week in Master the Markets.
Mortgage Rates Inch Down: Freddie 5-14-26
Mortgage Applications Increased 1.7% from One Week Earlier: MBA Weekly Survey for the week ending 5-8-26.
Mortgage Credit Tighter: MBA’s Mortgage Credit Availability Index (MCAI) fell by 0.4% to 107.9 in April. The Conventional MCAI decreased 0.6%, while the Government MCAI remained unchanged. Of the component indices of the Conventional MCAI, the Jumbo MCAI decreased by 1.0%, and the Conforming MCAI rose by 0.5%.
Mortgage Rates Higher for Longer (Again): CPI Didn’t Help - BLS
Pending Sales Highest in 4 Years: Redfin
Housing costs came down temporarily: slight downturn in rates…popped back up.
There are more houses on the market: The total number of homes for sale rose roughly 1% year over year to near their highest level in at least five years.
Seasonality is kicking in later than usual.
DOM: The typical home that sells goes under contract in 43 days, three days longer than a year ago. Just over one-quarter (26.4%) of homes that go under contract are selling above asking price, the lowest share for this time of year in at least five years.
Buyer Advantage – Barely: Redfin April Report
There were an estimated 46.5% more home sellers than buyers in the U.S. housing market in April, down from 47.5% the month before and a high of 48.9% in December 2025. It’s still very much a buyer’s market, but it’s no longer a strengthening buyer’s market.
Upbeat Indicators from ICE
Home prices post firmest monthly gain in two years: The ICE Home Price Index showed home prices rose 0.32% in April on a seasonally adjusted basis, equivalent to a 3.9% seasonally adjusted annualized rate (SAAR). The gain marks the strongest monthly increase since mid-2024 and signals strengthening price momentum heading into the spring market. Annual home price growth accelerated to 0.9% in April.
First-time homebuyers accounted for highest share of mortgaged purchases since mid-2020: First-time homebuyers accounted for more than half of all purchase loans closed in March — the highest share since June 2020 — supported by improved affordability earlier in the year and insulation from the rate lock-in effect constraining existing homeowners. Roughly two-thirds of FHA and VA loans went to first-time buyers, matching a five-year high.
Q1 refinance lending hit a four-year high: First-lien refinances totaling $242 billion closed in Q1 2026 — more than doubling YoY and marking the strongest quarterly total since early 2022. Refinances accounted for nearly 44% of all originations, the highest share in four years, with rate-and-term refinances representing 60% of all refi activity, a five-year high. The average rate-and-term refinancer reduced their monthly payment by $257 through a 97 basis point rate reduction.
Purchase loans close at fastest pace on record: The average purchase loan closed in 36.8 days in March — the fastest average closing time since ICE began tracking the metric in 2019 — down from 37.3 days a year ago. The typical purchase loan moved from application to rate lock in 11 days, then from rate lock to closing in an additional 26 days. Across all origination types, the average closing time of 38.2 days marked the third-fastest on record.
Another Survey About Veterans: Rocket Says Benefits Underutilized
59% of active-duty or retired service members and their spouses say they know about VA loans, but less than half (48%) of survey respondents had used or planned to use one to buy a home.
Just 16% are familiar with state-specific veteran housing resources.
Misconceptions about eligibility requirements often keep qualified veterans from accessing VA loans and other housing assistance programs.
While many veteran housing benefits are underused, that may be changing as the U.S. Department of Veterans Affairs has seen a 20% year-over-year increase in VA loan usage.
Up Annually, Down a Bit Monthly: ATTOM Data April 2026 U.S. Foreclosure Market Report
Foreclosure activity continued its gradual annual increase, even as overall filings declined month over month. Foreclosure starts rose 12% year over year, while completed foreclosures (REOs) jumped 42% annually
42,430 U.S. properties had foreclosure filings in April 2026, representing one in every 3,388 housing units nationwide.
Delaware, South Carolina, and Florida posted the nation’s highest foreclosure rates.
Despite annual increases in foreclosure activity, overall foreclosure levels remain significantly below pre-pandemic norms.