The commercial-banking sector isn’t running away from the mortgage-servicing business the way it did a few years ago, but aggregate figures show the industry continues to favor whole loans over mortgage servicing rights. [Includes two data charts.]
Although servicing brokers posted brisk sales figures for the first half of the year, the third quarter has been tepid, with buyers catching their breath while trying to figure out their next move.
Strong growth in originations of non-qualified mortgages in recent years has helped the sector gain market share. Lenders in the non-QM market suggest that originations are set to continue to increase, with a 10 percent share of total originations seen as a reasonable goal.
Highbridge Capital Management, New York, this week disclosed a 9.79 percent stake in the troubled Ditech Financial, a once bankrupt servicing giant whose future continues to be an open question.
With the deadline for implementing the revised integrated mortgage disclosure rule only a few days away, compliance experts said the industry is ready despite some remaining uncertainty.
If current trends hold in the official barometer used for adjusting conforming loan limits, look for the baseline limit to go up about 8 percent next year.
The Federal Housing Finance Agency could do a better job at utilizing the information it gets from Fannie Mae and Freddie Mac fraud reports, according to the agency’s Office of Inspector General.
The Department of Housing and Urban Development is planning this fall to seek comment on the use of FHA downpayment assistance from programs run by entities owned by Native American tribes.
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