Non-bank mortgage lenders having a tough time

Christina Rexrode reports in the Wall Street Journal,

Small and midsize U.S. mortgage firms are trimming staff, putting themselves up for sale and closing up shop at a clip not seen in years, a sign of the mounting pressure on the housing market as interest rates rise and a long economic expansion matures.

...Bankers and other industry watchers expect the ranks of smaller nonbank mortgage lenders to keep shrinking in coming months, as rising rates dry up the once-lucrative mortgage-refinancing business and make home purchases costlier. The nonbanks’ retreat adds to the concerns swirling about the health of the economy, particularly in the housing sector, which has slowed this year. Housing and lending are both major employers and widely followed leading indicators of future economic activity.

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