With some mortgage companies trading below their liquidation value, is now the time to stage a takeover? It depends. Meanwhile, former FHFA Director Mark Calabria this week broke his silence on what may lie ahead for Fannie Mae and Freddie Mac.
The two REITs have seen success even as profits from mortgage lending decline thanks to diversification efforts involving business-purpose lending and venture capital investments.
It stands to reason that as origination activity declines, some CEOs might earn less money this year than last. But a few are sharing the pain by taking a salary of $1 a year.
While the Federal Reserve intervened in the mortgage market to lower rates, lenders did not pass along all the savings to homebuyers, the former Freddie chief said.
Industry economists expect home lending to deteriorate through the rest of 2022 as gains in purchase-mortgage lending fail to offset the meltdown in refinance activity. (Includes two data charts.)
Trade groups representing smaller nonbank seller/servicers say it’s the larger nondepositories, with nearly 70% of the market, that pose the biggest risk to Fannie and Freddie.