Bank and thrift MBS holdings were up a modest 1.0 percent from the previous quarter, but it marked the first increase since the third quarter of 2012, when the Federal Reserve began aggressively buying agency MBS and Treasury securities.
It’s a buyer’s market for mortgage firms these days, and former Cole Taylor Mortgage Chief Executive Willie Newman couldn’t be in a better place: He’s teamed up with Stone Point Capital, a hedge fund that has committed several hundred million dollars to the purchase of residential lenders. “We have a lot of plans,” Newman told Inside Mortgage Finance. “We plan to be in originations, servicing, capital markets and multi-channel production.” It was...
Banks that extend warehouse lines of credit to nonbank originators saw their commitment levels fall 39 percent in the first quarter compared to the same period a year earlier, yet another sign that the origination market was extremely weak during the first three months of 2014. On a sequential basis, commitments dropped a more benign 10.8 percent, but it’s not unusual for some firms to keep a line open, even if they’re not utilizing their power to borrow. According to Inside Mortgage Finance estimates, banks and nonbanks had $27.0 billion in warehouse commitments on their books as of March 31, compared to $31.0 billion on December 31, and $45.0 billion a year ago. One active warehouse bank had...[Includes one data chart]
Construction-to-permanent loans are picking up a head of steam in certain markets. “Down here [in Florida] it’s extremely hot,” said Joe Adamaitis, vice president and residential lending manager for Insignia Bank.
An East Coast-based warehouse executive, requesting anonymity, said he has approached his credit board about such a change, and his waiting to hear back from them.
Only about 27.7 percent of Ginnie Mae first-quarter volume were refinance loans, and the refi share of the overall market fell to an estimated 44.3 percent, Inside Mortgage Finance found.
Lack of Congressional funding, however, has put a damper on the initiative. And lenders generally oppose proposals where they would be charged a subsidy fee.
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