Remember when rates ticked up a few weeks ago? Forget about it. Rates fell again, applications are strong and pipelines are full.

Based on reports from non-QM lenders Angel Oak and Citadel, the third quarter was a strong one for most originators. Meanwhile, the Ditech wind-down is almost over.

Bulk mortgage servicing sales have been slow in the third quarter, but that doesn’t mean bidders have been hibernating. If rates rise just a little bit and stay there, auctions of MSRs could boom.

The FHFA is doing its best to make certain the expansionist tendencies of Fannie and Freddie are held in check. Also, a crackdown on g-fee “deals.”

FHFA Director Mark Calabria this week ended a pilot program that allowed the GSEs to extend lines of credit to nonbanks pledging servicing rights as collateral.

Eli Global, the owner of three active mortgage lenders, has a new name — Global Growth — and a new chairman — George Vandeman. Meanwhile, founder Greg Lindberg remains the sole owner of Eli.

Growth in subservicing contracts slowed a bit in the second quarter as con-tinued low interest rates took their toll. It’s anticipated that once rates in-crease, more vendors could disappear through M&A.

Will the third quarter be better than the second for originators? Looks that way. Meanwhile, mortgage M&A advisor Houlihan Lokey might wind up as one of Treasury's GSE advisors.

 

Ginnie Mae said it will require MBS servicers with at least $25.0 billion worth of contracts to obtain an external primary servicer rating.

Mortgage M&A activity is on the light side these days. The reason: Home lenders are too busy originating new loans and reaping the profits. Unless rates spike, the situation is unlikely to change.