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Mortgage lenders are currently facing significant financial challenges, with origination of purchase mortgages hitting a 20-year low. As a result, major banks like Wells Fargo are withdrawing from the mortgage sector. Non-bank lenders, such as Loan Depot, are now predominant in the U.S. housing market, despite facing financial instability, as evidenced by their low stock prices. This reliance on financially vulnerable lenders poses risks, as many may go out of business, reminiscent of the mortgage lender failures during the 2008 housing crash.