First Republic Bank’s share price declined even after 11 big banks deposited $30 billion into the institution in a show of support. Western Alliance Bank has fared better, without coordinated support from other banks.
The failures of Silicon Valley Bank and Signature Bank have put much of the banking system on shaky ground. Lenders with similar balance sheets that are more heavily involved in the mortgage market are under scrutiny.
With a bank liquidity crisis taking seed, some nonbank CEOs started asking a basic question: Are our escrows safe? What about our corporate deposits? Needless to say, it’s been an interesting week.
When nonbanks hurt, so too do their warehouse bankers. Just how bad is it? Many originators in the primary market are struggling to post a profit, violating their contractual covenants. (Includes data chart.)
The FHA gained share in the first-time buyer market during the fourth quarter even though its average loan amounts were up slightly. Rising mortgage rates led to higher debt burdens across the market. (Includes four data charts.)
It’s been four months since FHFA approved new credit scoring models for loans delivered to the GSEs. While the transition wasn’t going to be quick, industry participants are still waiting on a timeline.