Late this week, Nationstar’s common was selling for $19.17 a share, just pennies below its yearly high. PennyMac Financial topped its high for the year.
In case you’re not keeping tally, there are roughly 387 calendar days remaining before the “capital buffer” at Fannie and Freddie falls to zero on Jan. 1, 2018.
Commercial banks and savings institutions gently nudged their valuations of mortgage servicing rights slightly higher in the third quarter as higher interest rates reduced prepayment expectations. A new Inside Mortgage Trends analysis of call reports shows banks put a fair market value of $36.17 billion on their MSR assets at the end of the third quarter. That works out to 0.93 percent of the principal balance of $3.879 trillion of loans serviced for others, up from ... [Includes one data chart]
Then there’s the case of Bill Dallas, the industry veteran who runs Skyline Home Loans in Calabasas, CA. “Winter is coming,” he said in a brief email exchange with Inside Mortgage Finance.
Despite higher interest rates, publicly traded mortgage stocks have been rising since the election, but market watchers are cautious that recent gains could evaporate quickly. “Two things are going on here,” said Henry Coffey, an equities analyst at Wedbush Securities. “We’ve had a massive market rally, especially in financial stocks. But the general consensus is that the new administration is going to be less punitive than the current one.” Coffey added...[Includes one data table]
Fannie Mae has not treated its foreclosed properties in African-American and Latino communities the same as those in predominately white neighborhoods, according to a federal lawsuit filed this week by the National Fair Housing Alliance. The NFHA, along with 20 fair housing and civil rights groups, said its investigation found signs of racial discrimination when it comes to the upkeep and marketing of Fannie’s real estate-owned properties in 38 metropolitan areas across the country. These properties in minority neighborhoods were blighted...