Capitol Federal Savings Bank took a loss of about $200 million on the sale of $1.3 billion of securities (largely MBS) with low interest rates. The bank reinvested the proceeds in higher-yielding assets and paid off some debts. Pacific Premier Bank made a similar move this week.
MBS creation is weak thanks to high mortgage rates and anemic refis but one positive for the market is the October increase in agency trading volumes. A real sign of hope or a head fake?
The Federal Reserve’s push to run MBS off of its balance sheet may cause interest rates to stay high even after quantitative tightening measures cease.
Hildene Capital Management formed a “strategic relationship” with CrossCountry Mortgage in late 2022, with the lender delivering non-QMs to the asset manager for securitization.
The MBA and others are pushing for federal regulators to go back to the drawing board on capital requirements for large banks. The regulators state that they will be flexible but defend the proposal.
When interest rates were low, escrow accounts were an afterthought in terms of MSR values. Now that interest rates are elevated, banks are seeing strong earnings from funds held in escrow accounts.
As promised, CMG is once again adding to its retail branch network, this time in New England, thanks to its onboarding of staff from Shamrock Home Loans.
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