In a surprise move, loanDepot Executive Chair Anthony Hsieh has stepped down, though he remains as chairman. What’s clear: The LD founder is not a happy camper, as insiders sell stock and the firm’s fortunes fade.
Commercial banks continue to look sideways at the residential lending business, wondering why they should be in it at all. Some are getting out while others are scaling back significantly.
The debt prices of select nonbank lenders have improved in recent weeks, but remain in the speculative bucket. As spring approaches, originators and their investors are hoping for the best. What else can they do?
On a quarterly basis, originations will bottom out in the first quarter, according to projections by the Mortgage Bankers Association. Still, it will take a little longer for profitability to improve.
A proposal to streamline servicing and claim requirements for FHA mortgages is in the works, along with expanded loss-mitigation options for VA servicers. VA also plans to issue a final rule on cash-out refis.
It’s a safe bet that further job cuts are in the cards for most mortgage franchises. But is the worst of the personnel bloodletting over? That’s hard to say. The optimists out there are hoping for a stronger second half.