It’s been a roller coaster ride for Finance of America and its shareholders. Rising rates have hammered its business lines and it’s anticipated the company will exit the MSR arena. FoA went public just over 18 months ago.
As a group, nonbank servicers are growing faster than depositories. But some of the biggest gains in the third quarter were by banks, and a number of nonbanks shrank their portfolios. (Includes three data charts.)
It had to happen eventually: The sale of bulk MSR portfolios has lessened noticeably in the fourth quarter, with some buyers actively low-balling their bids. And if rates fall to 5.5% next year, as some predict, the days of asset markups will be in the rearview.
Mr. Cooper posted a respectable profit for the third quarter, but challenges remain. Behind the scenes, this top-10-ranked shop has been both buying and selling bulk mortgage servicing rights.
Industry trade groups want Ginnie Mae to continue making changes to its risk-based capital requirements for nonbank issuers during the extended implementation period.
Where are home prices going? Is a recession going to lead to higher delinquencies? Mortgage industry participants are having a hard time answering these questions.
It’s been tough sledding for Finance of America this year but it has plenty of company. Then again, the shop is under extra scrutiny since it was once the property of The Blackstone Group.
Nonbanks continued to broaden their footprint in agency mortgage servicing during the third quarter, particularly the Ginnie market. Bulk MSR acquisitions played a role in that.
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