Lenders’ ratings cut by Fitch

By contrast, UWM’s outlook was stable, according to the agency. The Pontiac-based wholesale lender retained its ‘BB-’ rating, confirming its “strong market position and corporate profile as a leader in the wholesale residential mortgage segment”, Fitch added.

Neither Finance of America nor Freedom Mortgage Corporation responded to requests for comment.

Home Point declined to comment, however. A spokesperson for the Michigan-based wholesale lender told Mortgage Professional America (MPA) that it could not make a statement prior to its upcoming earnings release.

The latest ratings come as mortgage rates topped 7% last week, with the 30-year fixed rate hitting the highest level in 20 years, sparking concerns over affordability, which in turn has caused house prices to fall and would-be homebuyers to stay away from the market.

Meanwhile, homebuilder sentiment has now fallen to the lowest level since 2012, according to data from the National Association of Home Builders (NAHB).