Some industry stakeholders are portraying the proposed capital requirements on mortgage assets as an existential threat, one that might indirectly hurt independent nonbanks. But perhaps those fears are overblown.
HUD is seeking feedback on a plan to make permanent COVID-era flexibilities related to face-to-face meeting requirements between delinquent borrowers and mortgage servicers.
The agency single-family servicing market grew more rapidly in the second quarter of 2023, with nonbanks racking up most of the gains. Ginnie remained the fastest-growing sector.
If ever there was a Horatio Alger story for the mortgage industry it’s Angelo Mozilo, the co-founder of Countrywide Financial. The recently deceased Mozilo proved that nonbanks could compete with the megabanks. Then the subprime crisis happened.
A $9.9 billion fund established by the federal government to help borrowers avoid foreclosure is seeing growing use. Some $1.2 billion in funds from the Homeowner Assistance Fund were distributed in the first quarter.
When rates rise, holders of MSRs can benefit by increasing the value of this esoteric asset. Now that the second quarter has ended, the biggest beneficiaries will be shops that took it easy when it came to hedging.