BofA Global sees 0% home price appreciation in 2023, “with risks to the downside.”

Major U.S. banks already have been cutting staff and operations related to mortgage originations as interest rates have shot up and the roaring housing market has cooled in 2022.

For nonbank lenders, an even gloomier picture has emerged, particularly for players heavily reliant on the ability to make new loans to drive financial results that also face a lack of capital, according to a Fitch Ratings report.

“Smaller players such as real-estate tech startup Reali and Sprout Mortgage have shuttered, while First Guaranty Mortgage Corp filed for Chapter 11 bankruptcy,” a Fitch team led by Shampa Bhattacharya, director for non-bank financial institutions, wrote in a new report.

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