The REIT’s investments in MSRs increased by 20.2% in the second quarter, based on unpaid principal balance, to $109.0 billion as of the end of June. Annaly sees the assets as a nice hedge to its traditional investments in agency MBS.
The federal government should move forbearance to the front of the loss-mitigation waterfall, researchers at the Urban Institute proposed. A similar policy during the pandemic did more good than harm, they found.
Commercial banks, so far, have turned in underwhelming mortgage results for the second quarter, but that was to be expected. The real show starts in a few weeks when publicly traded nonbanks release earnings.
The market for MSRs is now divided between portfolios with loans originated prior to 2022 and portfolios with loans that have prevailing interest rates, prompting some shifts in practices among servicers and investors.
Many top agency MSR investors saw big gains in their portfolios during the second quarter, thanks to one of the busiest secondary markets in recent memory. (Includes two data charts.)
It’s not every day that a mortgage company files for bankruptcy protection, especially one owned by PIMCO. As for the future of that mortgage company, FGMC, a sale of its licenses is expected. After that, it’s game over.
With origination profits remaining depressed, most mortgage shops are tapping MSRs to bolster their quarterly results. As that old saying goes, “If you got ‘em, smoke ‘em.”
Federal regulators have several mortgage-related regulatory revisions in the works, including standards for qualified mortgages and membership at the Federal Home Loan Banks.
It was a good news/bad news story for the second-lien market in the first quarter of 2022. Production increased nicely but outstandings fell. (Includes three data charts.)
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