While TPO purchase volume has dipped in recent years amid a wider mortgage market cooldown, a similar drop on the retail side means neither has seen a sizable fall in market share. “What we see is between 2018 and [around] 2021, the volume of TPO purchase originations had been relatively stable,” Ige said, “but then in 2022, 2023, mortgage rates were high, so… originations dipped a little bit. But we see a similar trend for retail originations as well.
“In terms of looking at the share of purchase TPO originations in total, we’re seeing that represents about a quarter of originations.”
Refinance originations remain muted on TPO side
TPO refinance originations saw an uptick in volume between 2018 and 2020 – but climbing mortgage rates since 2022 meant that activity “dropped significantly”, Ige said, even though the TPO space’s refinance market share stayed “relatively stable” at about 14% between 2018 and 2023.
Regional insights showed that large metropolitan areas including Dallas, New York, and Houston topped the list of areas with the highest levels of third-party purchase originations.
Tailored mortgage solutions and a wider range of loan products were essential in those areas, NAMB’s report said, because of acute challenges including inventory shortages and high home prices.
Source: mpamag.com