The ratings outlook for Fannie Mae, Freddie Mac and two of the FHLBanks have been upgraded from negative to stable, reflecting strong economic growth and heightened government support.
Changes could be coming to the CFPB’s QM rule. Then again, maybe not. Meanwhile, second-quarter earnings season starts soon, giving us a look into originations and MSR marks at the megabanks.
Wells Fargo is in the process of changing where residential loans fit into the bank’s overall business. The company’s CEO cited GSE mortgages as a product that presents risk to the bank.
How do you know when a mortgage cycle has reached its nadir? When originators produce loans at a loss. We’re not there yet but we could be close. Meanwhile, just because a lender announces a stock buyback that doesn’t mean it will happen.