Edens is a principal and co-chairman of Fortress Investment Group, a publicly traded investment fund that happens to own 66.2 percent of Nationstar’s stock.
The “Brexit” vote in the United Kingdom last week helped significantly reduce interest rates on new jumbo mortgages. Looking forward, it’s not clear if rates will remain low, which would boost refinance volume, or if banks will make further adjustments. The Brexit vote prompted investors to increase their holdings of 10-year Treasury notes, pushing down yields. Interest rates on mortgages tend to follow trends in the 10-year Treasury, though rates on jumbo mortgages can be ...
Ginnie Mae has good reason to be concerned about rapid demographic change in its relatively small issuer community. Nonbank institutions – many of them relatively newly formed and based on nontraditional business models – are taking over the market. Nonbank issuers accounted for a whopping 69.4 percent of Ginnie’s issuance of single-family mortgage-backed securities during the first quarter of 2016. A year ago, their share was 64.6 percent. Two years ago it was 46.7 percent. With those kinds of gains on the production line, it’s not hard to see why nonbanks are claiming a growing share of Ginnie servicing outstanding. At the end of March, nonbanks owned 46.7 percent of Ginnie single-family mortgage servicing rights, up a hefty 11.5 percentage points in one year. That rate of growth can’t be accomplished just by producing new MBS because the servicing market simply doesn’t grow that fast. (Although the Ginnie market has grown significantly faster than any other segment of ... [ 2 charts ]
VA home loan guarantees reported modest growth in the first quarter of 2016 thanks to the program’s no-downpayment feature and higher-quality borrowers, according to Inside FHA/VA Lending’s analysis of agency data. The fourth quarter of 2015 was the worst quarter in an otherwise good year for VA lending, as lenders racked up $35.2 billion in total originations, down 21.0 percent from the third quarter, which was VA’s most productive for the year. However, the first three months of 2016 are off to a promising start with overall VA volume totaling $37.1 billion, a 5.5 percent improvement from the prior quarter. VA purchase volume was down 8.1 percent in the first quarter to $18.2 billion from the previous quarter, while VA IRRRL (interest rate reduction refinance loans) production rose 43.4 percent to $10.9 billion over the same period, data further showed. VA’s no-downpayment option in conjunction with the ... [ 1 chart ]
FHA condominium lending fell in the first quarter to $1.6 billion, down 8.6 percent from the prior quarter. The volume decline was the second in a row for the sector, when production fell 20.3 percent from the third to the fourth quarter last year. On the other hand, year-over-year volume saw a whopping 35.3 percent increase. The top 10 FHA condo lenders were dominated by nonbanks, with Quicken Loans leading the field. The only bank among the top 10 was Wells Fargo, which landed in third place with $45.3 million despite a 35.7 percent drop in condo loan originations in the first quarter. Leader Quicken Loans closed the quarter with $73.6 million, while second-ranked Freedom Mortgage Corp. clocked in with $55.6 million. Fourth-place LoanDepot originated $33.7 million in FHA condo loans, while Broker Solutions rounded out the top five category with $31.1 million. In November last year, FHA announced ... [ 1 chart ]
RSS