Lending · September 29, 2026
EveryBank Makes Home Loans, Sells Some, and Collects Checks on Other People's
The Mean services $647.4 million of mortgages it doesn't own. The Median services none.
EVERYWHERE (Sept. 29, 2026) — EveryBank originated $26.3 million of 1–4 family mortgages for sale in the second quarter and sold $28.5 million. It services $647.4 million of mortgages it no longer owns.
Only 8.1% of American banks report mortgage-banking income at all. Most banks make a home loan, keep it, and wait thirty years. Selling loans and servicing them for someone else is a different business. It pays fees when rates move one way and marks down the servicing rights when they move the other.
| Q2 2026 | Mean |
|---|---|
| Originated for sale | $26.3M |
| Sold | $28.5M |
| Held for sale at June 30 | $16.6M |
| Serviced for others | $647.4M |
| Mortgage servicing rights | $10.1M |
The median bank's figure on every line is zero.
"Averaging hands EveryBank a servicing operation almost no bank its size would recognize. The Median services its own loans and knows the borrowers by name."
— Kal Lateral, Head of Lending
On the loans EveryBank keeps, borrowers got more current: past-due and nonaccrual 1–4 family loans fell 0.08 percentage point to 1.99%.
Carl Lotz, Head of Floor Plan & Dealer Services, asked whether mortgages overlap with floor-plan lending, remains in a meeting.
A note from the Modeler
The Modeler filed this from what appears to be a bar. A fixed-rate mortgage comes with a free option: the borrower can pay it off at any time. When rates fall, borrowers refinance, and the lender gets its money back just when it can only relend it for less. When rates rise, nobody refinances, and the lender holds a below-market loan longer than it planned. The lender gains a little when rates fall and loses more when they rise. Bond people call that negative convexity. Homeowners call it a mortgage.
With the 10-year Treasury at 5.18% on Sept. 24, its highest since 2007, the mortgages and mortgage bonds EveryBank already owns are getting longer, not shorter. That is part of the $77.1 million in unrealized losses in the capital report. Servicing rights run the other way: when rates rise, people stop refinancing, the servicing lasts longer, and it is worth more. Rates, on the economy page →
"October. This is one of the peculiarly dangerous months to speculate in stocks in. The others are July, January, September, April, November, May, March, June, December, August, and February."
— Mark Twain, Modeler (posthumous), in Pudd'nhead Wilson (1894)
Originations, sales and loans held for sale come from the mortgage-banking section of the quarterly report, which only larger and mortgage-active banks file. Banks that don't file it count as zero.