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Big banks beat mortgage origination expectations in Q2
JPMorgan’s mortgage originations totaled $17.2 billion in Q2 as gain-on-sale margins fell to 85 basis points.
Big banks posted stronger-than-expected mortgage origination volumes in the second quarter of 2026, HousingWire reported. Industry volumes averaged a 32.0% increase versus the prior quarter, according to the article’s cited analyst benchmarks. BTIG analysts said the banks’ Q2 volumes were well above expectations for a 3% rise, and above industry forecasts of a 6% increase. The article also notes that the 30% increase exceeded the 11% jump in industry mortgage-backed securities issuance for the quarter. JPMorgan originated $17.2 billion in mortgages from April through June, up 26% quarter over quarter, with retail accounting for $10.6 billion and correspondent business $6.6 billion. JPMorgan’s gain-on-sale margins declined 44 basis points to 85 bps, which the article links to a 17% quarter-over-quarter drop in production revenue. Wells Fargo produced $9.0 billion in mortgage during Q2, a 43% increase from Q1 driven by its retail branch network, while Bank of America originated $8.2 billion in mortgages, up 28.4% from Q1, and $2.9 billion in home equity loans, up 17.7%. In servicing, Wells Fargo’s third-party mortgages serviced totaled $361.4 billion, down 7% quarter over quarter, as the bank continues to scale back third-party servicing.
sources_used:HousingWire