The drop in warehouse commitments mirrored, somewhat, the fall-off in residential originations, which declined almost 19 percent in the third quarter, according to figures compiled by Inside Mortgage Finance.
The rating service this week placed the primary servicer rating of EverBank Mortgage on watch for a potential downgrade due to changes to the servicers platform.
Compared to June 30, MBS investments by REITs are off 6 percent. Moreover, the industry has lost nearly all of the huge volume of MBS that were acquired in early 2012.
Wells, Bank of America and JPMorgan Chase accounted for a combined 44.7 percent of the $517.75 billion in bank HELOCs outstanding at the end of the third quarter.
Advisors note that Walter should be concerned that it has a large MSR portfolio $194 billion at Sept. 30, according to figures compiled by Inside Mortgage Finance but a relatively small origination platform.
In our view, the primary risk associated with some lenders being less than fully prepared for QM could be temporary loan production delays, the consulting firm adds.