. So with profitability for mortgage originators surging to incredible levels last year, it is no surprise that the reaction this year is also fierce.
These margins do have some context. Rocket expects its overall gain-on-sale margin to fall from around 3.7% in the first quarter to under 3%, with the margin on loans originated with partners, like brokers, to be around 1%. UWM, which is entirely focused on brokers, guided that its first-quarter margin of about 2.2% could fall to 1.1% or below. Those are still levels high enough for firms to be profitable and aren’t anything new to brokers accustomed to prior cycles.
Rocket is guiding to lower volume for the second quarter, to closed-loan volume of between $82.5 billion and $87.5 billion, compared with $103.5 billion in the first quarter. UWM is guiding to a small increase in volume, to $51 billion to $55 billion for the second quarter, from just under $50 billion in the first quarter.
Yeah let's pump this story up and create another sub-prime mortgage collapse.
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