Mortgage bankers of all sizes continued to report strong earnings on their mortgage banking operations during the fourth quarter of 2012, but the salad days may be over.
The mortgage banking industrys record level of profitability may have peaked, as gain-on-sale margins have already begun to slip and more dark clouds appear on the horizon, according to industry analysts.
Lenders One, the nations largest mortgage cooperative, is telling its members they need to get their Fannie Mae servicing approvals by the end of January to be eligible for discounts under an affinity deal it has with the GSE.
Nationstar Mortgage this week priced $300 million of asset-backed notes in what the company called the first ever securitization of collateral backed by agency servicing advances, a sign that nonbanks are beginning to see more liquidity for mortgage servicing rights. The yield on the Nationstar paper is an attractive 1.46 percent. The term is three years. And in another development in the same market, Home Loan Servicing Solutions, which is affiliated with Ocwen Financial, has signaled...