The Federal Housing Finance Agency late last week issued a call for public comment on how Fannie Mae’s and Freddie Mac’s guaranty fees should be determined, although the agency did not make any specific proposals, as some had expected. The FHFA’s “request for input” specifically seeks guidance regarding the optimum level of g-fees and their implications for mortgage credit availability. …
Waiting for a large merger or acquisition to happen in the mortgage market is a bit like waiting for Godot: there’s plenty of talk about his arrival, but he may never show. “Right now there’s a large discrepancy between what the buyer wants to pay and what the seller wants to sell at,” said Chuck Klein, managing partner in Mortgage Banking Solutions, Austin, TX. “Any company that’s making money will not sell at just book value.” One large company that likely will not be sold this year is...
Production of “agency jumbo” mortgages fell sharply in the first quarter of 2014 and is likely to drop even more as new FHA loan limits show up in endorsement data. According to a new Inside Mortgage Finance analysis, Fannie Mae, Freddie Mac and the FHA saw $10.5 billion in single-family business with loan amounts exceeding the traditional agency limit of $417,000 during the first quarter of 2014. That was down 30.6 percent from the fourth quarter. It was also the lowest three-month volume since the fourth quarter of 2008, not long after dramatically higher “emergency” loan limits were put in place by the agencies. In comparison, originations of non-agency jumbo loans fell...[Includes three data charts]
It was also the lowest three-month volume since the fourth quarter of 2008, not long after dramatically higher “emergency” loan limits were put in place by the agencies.
Correspondent sellers fret that some of the largest players might shut the door on them for a different reason: they can’t deliver enough volume in an origination-challenged market.
The “legacy” bulk market for MSRs has been spooked, to some degree, by regulatory scrutiny, though offerings of newly originated product have been plentiful.
“I’m tired of having the AMC acting as my pimp," said one appraiser. "The current situation is ruining the appraisal profession and turning appraisers into whores for the AMCs."
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