Volume 18 - Number 5
March 7, 2014
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Fannie Mae and Freddie Mac last year wrapped up most of the massive amount of repurchase demands they made on legacy loans originated before 2008, but the government-sponsored enterprises are looking more closely at new production and, increasingly, servicer performance. Together, Fannie and Freddie reported a total of $37.87 billion in mortgage repurchases and other settlements of buyback claims, which typically means ... [Includes one data chart]
Commercial banks and savings institutions made $1.447 billion in mortgage repurchases and other indemnifications during the fourth quarter of 2013, according to a new Inside Mortgage Trends analysis of call-report data. Repurchase totals for the final three months of last year were the lowest quarterly volume since the second quarter of 2008, when the industry made $1.533 billion in mortgage repurchases and indemnifications. The fourth-quarter ... [Includes one data chart]
When the going gets tough in the mortgage industry, nonbank lending firms start pondering the once unthinkable: selling their franchises, hoping the cash will tide them over until the next upswing in the cycle. The situation is no different this time around. Investment banking advisors say there are plenty of potential acquirers – all hunting for bargains – but sellers are picky. “Cheap is the goal now,” said Chuck Klein, a managing partner at Mortgage Banking Solutions ...
In new guidance to examiners and bankers, the Office of the Comptroller of the Currency is stressing the risks posed by mortgage banking, particularly for banks that rely heavily on the mortgage industry to turn a profit. “A mortgage banking operation’s income and expense components can change at significantly different rates and in different directions over time, resulting in substantial shifts in profitability,” the OCC said in its new handbook on mortgage banking ...
Officials at nonbank special servicers said they will continue to work to acquire servicing from banks, but they prefer to generate their own servicing via originations. Officials at Nationstar Mortgage, Ocwen Financial and Walter Investment Management noted that creating mortgage-servicing rights via their own originations can be more cost effective than acquiring MSRs or subservicing from other lenders. Nationstar originated $24.0 billion in mortgages in 2013, making it the ...
In the last couple of years, the wholesale origination channel has been a revolving door for industry players, with some exiting for various reasons and new ones coming in to take up the slack. Those currently in the game expect the instability will continue for some time. Wholesalers say the decision to exit the business or enter at one’s own peril boils down to perception: Is the glass half empty or half full? Brian Benjamin, a mortgage broker and president/CEO of Two River Mortgages ...
Loan correspondents and mortgage brokers continue to play a major role in the agency mortgage market, accounting for 42.9 percent of loans securitized by Fannie Mae, Freddie Mac and Ginnie Mae in 2013, according to a new Inside Mortgage Trends analysis. Correspondents accounted for most of the third-party originations securitized by the agencies, and Wells Fargo was the top producer of these loans. Just over half of the loans sold by Wells were ... [Includes one data chart]
- GSE Seller Profile: 4Q13
- Top Mortgage Players: 3Q13
- GSE Repurchase Activity First Half 2013
- Mortgage Profitability Report: 3Q13
- GSE Market Profile: FY12
- GSE Private Mortgage Insurance Profile
What is your mortgage servicing rights strategy for the year?
- We plan to originate and keep all of our MSRs.
- We sell all our MSRs "servicing released" for cash right away.
- We have a strategy of selling some of our MSRs, but only when we need to.
- None of these describes our 2014 strategy.
Most Popular Stories
- Bank Mortgage Repurchase Volume Falls to 5-Year Low
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- Nations Sixth Largest Table Funder, Fifth Third, Calls It a Day on Broker Channel
- What Were Hearing: A 90 Percent Plunge in Originations? / 20 Girlfriends, Only One Mortgage Bride / JPMs Jamie Dimon Said What? / Who Died and Left Ben Lawsky Boss? / The CFPB Might Need to Open an Office in India
- New MI Trade Group Has Limited Visibility on GSE Eligibility Standards