Nonbanks are under increased pressure as borrowers face skyrocketing obligations on taxes and insurance. Concurrently, there’s a risk that interest rates will decline, cutting into MSR values.
If regulators take an aggressive stance, the final capital rule could be out by May. The other option would be to re-propose the rule, which could leave the rulemaking unfinished if there’s a change in administration.
The new Payment Supplement program will allow servicers to temporarily reduce a borrower’s monthly payment by up to 25% without modifying the mortgage’s current interest rate.
MSR buyers? The field is getting crowded and PE-backed investors continue to be aggressive. Even Guild Mortgage is open to the idea of buying, but only if the situation meets its parameters.
Buying 5% to 6% bulk MSRs in the secondary market might seem like a crazy idea given the prepayment risks involved. But the longer mortgage rates stay higher, the more it looks like a smart move.
Delinquencies increased in the fourth quarter as borrowers faced growing financial pressure. Still, some of the increase in delinquencies looks to be related to a quirk in the calendar. (Includes data tables.)
The Mortgage Bankers Association took Treasury Secretary Janet Yellen’s remarks as an opportunity to reiterate industry concerns about the Basel III endgame proposal.
A mini-price war from UWM and it’s not even March. As one warehouse veteran put it: “It’s a little like the old Rockefeller tactic of pricing out the competition. It seems to work, but at a cost.”
Banking regulators appear to be taking criticism of their capital requirements proposal to heart. The impact the proposal would have on the mortgage market remains a major issue.
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