For lenders, the best scenario is that an arbitrator might rule in their favor, with a GSE reimbursing them for what Fannie and Freddie call “certain costs and expenses.”
In the announcement on dropping coverage, FBR quoted PHH management as saying “organic growth is hard to come by, strategic initiatives are taking longer to achieve, and prepayment speeds on the company’s MSR are still elevated…”
All three agencies posted big increases in multifamily MBS issuance last year, with Freddie (up 65.4 percent) and Fannie (up 36.4 percent) leading the way…