Titan Capital Solutions has branched out from its jumbo correspondent investor niche into the scratch-and-dent market to take advantage of new business opportunities arising from repurchase demands and loans that aren’t qualified mortgages. The Denver-based correspondent investor has begun purchasing loans rejected by Fannie Mae and Freddie Mac and private investors due to information, document and compliance errors. Historically, “scratch-and-dent” ...
Regional banks are reporting significant declines in mortgage-banking income during the fourth quarter, although nearly all institutions continue to earn a profit from the business. A diverse group of 20 regional banks posted a combined $684.2 million in mortgage-banking income for the fourth quarter of 2014, according to a new Inside Mortgage Trends analysis of earnings reports. That was down 13.5 percent from the group’s aggregate $790.5 million in ...
Mortgage vendors usually see their fortunes rise and fall based on loan origination volume, but don’t tell that to DocMagic, which is consolidating its hold in the document preparation business. In a year in which residential production fell 34 percent, the Torrance, CA-based DocMagic grew its client base to 7,500, a gain of 1,000 in just over 12 months. The privately held doc prep/software company doesn’t generally disclose revenue figures, but according to ...
Three pools of seriously delinquent mortgages with a total unpaid principal balance of $410 million will be auctioned off by Freddie Mac. The delinquent pools, with unpaid principal balances of $160 million, $141 million and $109 million, will be offered through Mission Capital Advisors, the broker in the deal, according to a Bloomberg report. Competitive bidding will end on Feb. 4. A large chunk of the loans are two years past due, the report noted. Freddie spokesman Tom Fitzgerald declined to provide further details, saying information at this stage of the deal is provided solely to prospective bidders. He said details on the results will be provided after auction. The transaction is the second of such sales for Freddie in ...
Fannie Mae’s risk-sharing business had a gang-buster year in 2014, and the Federal Housing Finance Agency set a higher goal for the GSE in 2015. “Certainly we were very pleased with where we were able to take the program last year,” said Laurel Davis, Fannie vice president for credit risk transfer, in an interview with Inside The GSEs. “If you think about 2013, our goal then was to just launch something and to test the market and see what would happen.” The plan for 2014 was “to establish a regular pattern of issuance with the market,” Davis said. “Even though we had a good amount of issuance last year, obviously the program itself is still in its infancy. So our ...
Fannie Mae and Freddie Mac have filed notice with the Securities and Exchange Commission warning that they might not be able to pay “deferred” compensation to executives if the GSEs fail to meet their 2015 conservatorship scorecard goals. Fannie, for instance, notes that the Federal Housing Finance Agency “will have the primary role” in determining whether the mortgage giant achieved its goals.None of the potentially affected executives are named in the separate SEC filings of the two. One former GSE regulator had this to say on the matter: “The purpose of the conservatorship scorecard is to drive performance. They are tied directly to GSE executive compensation.” According to the recently released 2015 scorecard, performance is based on a variety ...
Despite heavy volume in new single-family business in recent years, there has been little growth in the outstanding volume of Fannie Mae and Freddie Mac servicing. GSE single-family servicing peaked at $4.794 trillion back in 2009. Up until 2014, refinance activity accounted for over 70 percent of Fannie/Freddie new business; there was a lot of churning in GSE servicing rights but a net decline in outstanding volume. The rebound in purchase-mortgage lending last year began to turn that around. A new Inside The GSEs analysis of Fannie and Freddie mortgage-backed securities disclosures shows total single-family servicing grew modestly in both the third and fourth quarters of 2014. The analysis shows a total of $3.956 trillion of single-family servicing at the ...
Investors are beginning to show renewed interest in buying servicing rights collateralized by Fannie Mae and Freddie Mac loans, in particular “flow” transactions where the product is delivered in the future on a monthly basis. Moreover, there is even talk in the market that some of the megabanks may return as active buyers now that they’ve figured out their capital exposure under the Basel III capital rules. Basel caps mortgage servicing rights at 10 percent of Tier I capital, but some large “flow” buyers of yesteryear – including Wells Fargo – are under the limit and could have room to grow. Phase in of the Basel rule began last year. “We see a day when banks are active buyers again,” said Mark ...
Republicans in the House Financial Services Committee and Mel Watt, director of the Federal Housing Finance Agency, clashed regarding funding of affordable housing funds by the GSEs at a hearing this week. In November, the FHFA directed Fannie Mae and Freddie Mac to begin setting aside funds in 2015 to be allocated to the Housing Trust Fund and the Capital Magnet Fund. The contribution formula calls for Fannie and Freddie to send amounts equal to 4.2 basis points of the principal balance of their new business to the funds, about $290 million based on the GSEs’ activity in 2014. Watt’s directive reversed a suspension that his predecessor, Ed DeMarco, had implemented. Watt repeatedly cited the Housing and Economic Recovery Act ...
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