Popular Bank exits mortgage lending

Core Viewpoint - Popular Bank is exiting the U.S. residential mortgage origination business due to competitive pressures and a desire to focus on more profitable areas [2][3] Company Summary - Popular Bank, based in Puerto Rico, is the second institution to exit home lending in a little over a month, following Oceanfirst Bank's similar decision [1][7] - The bank reported a net income of $211 million in the most recent quarter, with a $129 million increase in mortgage activity in its Puerto Rico business [3] - The exit from the mortgage segment will impact an unspecified number of employees and is accompanied by the closure of four branches in the New York metropolitan area [2][3] Industry Summary - The mortgage industry is undergoing significant changes due to current market conditions, leading to a wave of mergers and exits as companies reassess their strategies [4] - Rising interest rates and housing affordability challenges have resulted in many nonbank lenders struggling with profitability, prompting them to merge or exit the mortgage business [5][6] - Other institutions, such as Ally Financial and WaFd Bank, have also announced exits from the mortgage segment, indicating a broader trend in the industry [6]