Banks are reducing their appetite for mortgages, providing opportunities for nonbanks to boost their investment in the mortgage market. Redwood Trust looks to be leading the way in terms of bank partnerships.
Officials from the secondary mortgage market believe innovations in products, policy and technology can support lenders and borrowers through a difficult housing market.
Hope springs eternal for a revival in Ginnie Mae early buyout activity this year. Two missing ingredients: a steeper decline in mortgage rates and an end to the VA moratorium on foreclosures.
The National Association of Realtors’ recent settlement could prompt a decline in the commission of a homebuyer’s real estate agent. The change could put pressure on both homebuyers and lenders.
Vendors that ply their trade in the subservicing arena aren’t growing very quickly these days, though there are exceptions. Meanwhile, M&A activity has resulted in some attrition and more could be on the way. (Includes data table.)
Statements by President Biden indicate that, if he is re-elected, reducing housing costs will be a priority for the administration. If Trump returns, the regulatory environment is likely to be accommodative for lenders.
What would mortgage bankers do if they didn’t have a massive reservoir of mortgage servicing rights to rely on during difficult times? Best not to think about it. But the good news is that servicing values remain strong.