Mutual of Omaha is exploring a sale of its mortgage division

☕️ Good morning. This is Mortgage Nuggets. The newsletter that pairs perfectly with your morning coffee. Let’s dive into what we’ve got for you today—a 2.5-minute read.

1. Mutual of Omaha is exploring a sale of its mortgage division

Mutual of Omaha Insurance has hired Houlihan Lokey to assess a potential sale of Mutual of Omaha Mortgage, according to Bloomberg. No deal has been finalized and plans may change.

The division is sizable — 954 producing loan officers, $11.2 billion in volume over the past 12 months, and 158 branches nationwide. It is also the second largest HECM lender in 2026 with 3,343 endorsements through August, trailing only Finance of America. It was the largest in 2025 with 5,740 endorsements.

A sale would be one of the larger mortgage M&A transactions of the year given the reverse mortgage footprint alone.

2. Utah loan officer killed by real estate agent boyfriend

Silvia Bahena, a 37-year-old loan officer at Intercap Lending in Utah, was shot and killed August 31 allegedly by her boyfriend, local real estate agent Daniel Ruesga.

Police say Ruesga crashed his truck into Bahena's Tesla inside her garage following an argument, then shot her multiple times. Her four children were inside the home and later found their mother.

Ruesga has been charged with murder and several additional offenses. Court records show he had previously pleaded no contest to a domestic violence-related property damage case in 2025.

Colleagues described Bahena as an exceptional mother who had joined Intercap without prior origination experience. The office has been devastated by her death.

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3. More Nuggets

📊 Trump backs Warsh, faults 'hostile' Fed board for rate hike. (AFR)

🆕 Better, FirstClose, Nada launch new home equity products. (NMN)

🏡 Where home prices are rising—and where they’re falling. (ResiClub)

4. Mortgage origination forecasts are being cut as rates climb past 7%

Analysts are resetting their origination outlooks lower. MBA cut its 2027 forecast to $2.101 trillion from $2.144 trillion and expects rates to hover near 6.7%. KBW raised its 10-year Treasury baseline to 4.75% through year-end, up from 4.4%, and now projects mortgage volumes "subdued versus earlier expectations."

PennyMac's early Q3 numbers back it up — $16.6 billion funded in July and August combined, pointing to roughly a 28% drop from Q2's monthly pace. Argus Research's Kevin Heal put it plainly: "If we continue at these rate levels, origination is going to be a lot lower. Compared to Q2, it could be down at least 5% in Q3."

The only bright spot analysts flagged: lenders with large servicing portfolios and home equity exposure have a better cushion than those dependent on purchase and refi volume.

5. Gateway First Bank acquires Colonial Savings to expand Texas footprint

Oklahoma-based Gateway First Bank has agreed to acquire Colonial Savings F.A., a Fort Worth community bank with six locations.

The deal pairs Gateway's mortgage-centric banking model — $2.5 billion in 2025 originations and 213 loan officers — with Colonial's local franchise and customer relationships. Financial terms were not disclosed and the deal is expected to close in Q1 2027.

Colonial originated $470 million in mortgages before exiting originations in 2023, then wound down its $20 billion servicing portfolio as well. The acquisition gives Gateway a Texas community banking presence to complement its national mortgage footprint of 60+ locations and roughly 600 employees.

☀️ You’re all caught up. See you on Wednesday!

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