Banks that extend warehouse lines of credit to non-depositories are suffering from a usage drought on their loans, forcing them to consider other asset classes to finance, including mortgage servicing rights. According to industry advisors and warehouse officials, there are at least half a dozen large banks that are dipping their toe into the MSR financing pool or contemplating such a move. “From what I’m seeing, a number of warehouse banks are looking...

Industry observers believe that FHFA Director Mel Watt – who has been on the job since early January – wants to open up the “credit box” for low- and moderate-income borrowers.

The good news for the mortgage industry is that the bulk of Dodd-Frank-required mortgage rules have already been issued.

New originations of both refinance loans and purchase mortgages fell sharply from the fourth quarter, with the biggest slump in the refi market, according to a new Inside Mortgage Finance ranking and analysis. An estimated $104 billion of refinance loans were originated in the first quarter, down 45.6 percent from the end of 2013. Compared to a year ago, refi production was down 76.2 percent. Refinance originations hit a cyclical high at the end of 2012 and early 2013, averaging nearly $440 billion per quarter, and it’s been going down steadily since then. With interest rates dropping in recent weeks, some mortgage observers say...[Includes one data chart]

Notably absent from Watt’s first major policy speech as FHFA director last month was any mention of the housing trust funds.

With interest rates dropping in recent weeks, some mortgage observers say there’s a chance that the refi market could rebound.

And it doesn't appear that Millennials are willing to give you much to save for a mortgage downpayment either.

“We have a lot of plans,” Newman told IMFnews. “We plan to be in originations, servicing, capital markets and multi-channel production.”

Western Asset Management has a "ton of fire power" when it comes to buying non-agency mortgages, said one source.

Fairholme still owns a ton of GSE stock. At press time Wednesday, Fannie common was trading at $4.77. The most Fairholme ever paid for Fannie common was $2.07. Sweet…