Competition for originations by brokers is set to intensify as PennyMac Financial Services is preparing to enter the wholesale channel. Company officials said the nonbank is aiming to have a “leadership role” in terms of volume among wholesale lenders. “The wholesale channel currently comprises approximately 10 percent of the total mortgage market, and we believe there is a significant opportunity in this channel for a company like PennyMac Financial, with the strong ...
Utilizing a sophisticated analytical capability to assess end-to-end profitability of products, channels and operating units and better manage the economics and risks of the portfolio can provide a powerful boost to mortgage servicing operations – and some of the most intelligently run organizations are already reaping the rewards of doing so, according to a recent white paper by PricewaterhouseCoopers. “Today, many companies rely on general ledger reporting and ...
More than 100 members of Congress expressed serious concern over a Department of Labor proposal to revise the existing overtime rule for white-collar employees, fearing it would adversely impact employers, including those in the mortgage industry. A joint bipartisan letter to DOL Secretary Thomas Perez signed by 108 House members said expanding overtime protections to help more workers, as proposed by the DOL, would end up hurting them and ...
Analysts at the Federal Reserve found a substantially large reduction in homeownership due to student-loan debt in recent years. The analysts said their research is more detailed than previous studies on the issue because the Fed analysts had access to extensive data on student-loan borrowers. “We find that a 10 percent increase in student-loan debt causes a 1 percentage point to 2 percentage point drop in the homeownership rate for student-loan borrowers ...
Fannie Mae earned $2.47 billion in the fourth quarter, according to its earnings statement released this week, a 25.9 percent increase from the previous quarter. The GSE attributes that rise to an increase in longer-term interest rates. For the full year 2015, Fannie’s income declined to $11.0 billion from $14.2 billion in 2014. The GSE said the decline was partially the result of a reduction in income from settlement agreements and increased expenses relating to its single-family foreclosed properties. Fannie plans to send $2.9 billion in dividend payments to the U.S. Treasury by the end of March. When that dividend payment is made, the GSE will have returned $147.6 billion to the government versus draws of...
Freddie Mac reported earning $2.16 billion in its fourth quarter earnings statement announced this week and a $6.38 billion profit for all of 2015, slightly less than the $7.69 billion earned the previous year. But its net interest income, which includes guaranty fee income, rose 4.8 percent to $14.95 billion.Unlike in the third quarter, when the GSE announced a $475 million loss due to hedging activities, this time around hedging losses were a non-event. Overall, Freddie booked $744 million in gains on its derivatives in the fourth quarter. Freddie noted that the shift was primarily due to an increase in long-term interest rates during the period as opposed to a decrease as witnessed in the third quarter.
Freddie Mac expects the multifamily market to remain strong, despite the onslaught of new supply, with purchases slightly greater in 2016. Multifamily origination volume in 2015 is expected to be at $225 billion and the GSE anticipates 2016 industry volume to reach between $240 billion and $250 billion. GSE participation in the multifamily market constituted the largest portion of 2015’s increase over 2014. Freddie did $47.2 billion in multifamily business in 2015. “It was a great year for the multifamily market and for the Freddie Mac multifamily market. Great for both the mortgage market in terms of record volume of origination and for the property market with continued strong growth in demand, positive fundamentals...
Fannie Mae revealed that Canyon Partners, Goldman Sachs and Pretium Mortgage Credit Partners were the winning bidders of its first nonperforming loan sale of 2016, which amounted to $1.32 billion in delinquent loans. The four pools went to market on Jan. 12 with the help of Bank of America Merrill Lynch and First Financial Network. They included approximately 6,500 loans spread across four different pools. Canyon Partners won the first pool comprised of 3,127 loans with an aggregate unpaid principal balance of $637.4 million, a weighted average note rate of 5.7 percent and average delinquency of 59 months.
Although residential originations fell by roughly 15 percent in the fourth quarter on a sequential basis, warehouse lenders saw their commitments inch up slightly, according to new figures compiled by Inside Mortgage Finance. At Dec. 31, warehouse banks had extended an estimated $49.0 billion of commitments to non-depository lenders, a 2.1 percent sequential gain. Compared to yearend 2014, commitment levels rose a handsome 28.9 percent. Part of the reason for the increase in activity – especially year-over-year – can be explained...[Includes one data table]
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