If Treasury converts its senior preferred shares to commons and the GSEs go for a public offering, existing shareholders will take a haircut. Valuations on the commons could dip to $1/share for Fannie and $2 for Freddie.

DoubleLine Capital has picked up a minority stake in OptionWide Financial, while MFA Financial has put its might behind five non-qualified-mortgage lenders.

The A-paper M&A market is in the doldrums. The reason: lenders are making money hand-over-fist and company owners are hanging on for one last shot at the refi rodeo.

Industry players are asking the NYDFS to delay new mortgage servicing rules that go live in less than two weeks. Servicers say they are not ready.

Low interest rates are great for lenders but servicers are having a tough time of it, especially shops looking to unload product. One dealmaker is advising clients to sell MSRs now before they “vaporize.”

In a plan that began at least as far back as 2016, the FHLBanks actively considered buying one of the government-sponsored enterprises. Even senior staff at Treasury and FHFA were involved.

2019 was a banner year for warehouse mortgage providers, thanks to strong nonbank originations in the primary market. And now it appears that 2020 could be even better.

If a Democrat wins the presidential race, industry analysts expect regulatory changes in the mortgage industry. If Trump is reelected, GSE reform efforts will continue to gather pace.

Asked what levels of capital would be necessary in order to release Fannie and Freddie from conservatorships, Treasury and FHFA said it is “premature” to comment on specific levels.

For allowing FHLB membership, FHFA wants to know what specific financial requirements should be enforced and how existing members would be impacted.