Overall, the group reported a 5.8 percent increase in total mortgage banking income – which for some firms includes activity not captured in either production or servicing – during the fourth quarter.
Among those buying into MI stocks is Paulson & Co., the legendary hedge fund that made $15 billion by shorting publicly traded subprime firms via the ABX Index in the run-up to the housing bust.
In an interview with IMFnews, Millon said CMC now owns roughly $5 billion in MSRs, compared to just $1.5 billion a year earlier. “We’re buying rights from the members of our cooperative,” Million said.
A spokesman for Ocwen said the company did not like the way the IMFnews story was being “interpreted.” After the story was published early Friday afternoon, Ocwen’s share price began to rise and continued to increase Monday.
Banks and thrifts earned a hefty $5.292 billion on their mortgage-banking activities during the fourth quarter of 2013, boosting the year to one of the industry’s best in recent memory. Mortgage banking income reported by banks and thrifts rose 12.7 percent from the third to the fourth quarter of last year, according to a new analysis of call-report data by Inside Mortgage Trends. The fourth-quarter surge brought annual earnings from mortgage banking to $25.857 billion in 2013 ... [Includes one data chart]
Bank and thrift MBS holdings fell by 4.6 percent during 2013, and by the end of the year, they were down 7.8 percent from the all-time high of $1.634 trillion reached at the end of March 2012.
The capital markets risk-sharing transactions completed by Fannie Mae and Freddie Mac in the past year are seen by some as a model for reform of the government-sponsored enterprises. However, the GSEs are taking on significantly more risk in the transactions than the non-agency first-loss requirements contemplated in legislation pending in Congress. Analysts at Barclays Capital project that after Congress approves mortgage-finance reform legislation, it would take at least 10 years to transition smoothly to a new system. Bills in Congress contemplate a five-year transition timeline, but raising enough private capital to fund the new system in that timeframe could be difficult. Industry analysts predict...
The private student-loan sector continues to slowly improve, but defaults and delinquencies are still at elevated levels compared to the period before the financial crisis, according to a new report by analysts at DBRS, based on data from deals that closed between 2002 and 2007. Quarterly gross defaults, as measured as a percentage of loans in repayment, slipped from 1.07 percent in the third quarter of 2013 to 1.00 percent in the fourth quarter. Similarly, the percentage of gross defaults as a percentage of the original pool balance declined from 0.55 percent to 0.50 percent. “Defaults have remained...
The GSE chief credited Fannie’s strong performance to a wide array of factors, including improving home prices and lower delinquencies, but also tighter underwriting standards which have created a pristine book of business for the company.
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