Improving loan quality is sparking a major shake-out in the due diligence sector. Can jumbo production and MBS save the day? Meanwhile, the supply of MBS expanded slightly in the fourth quarter.
Although it expects to report significant net income for both the final three months and the full year 2012, Fannie Mae announced late this week that it will delay its earnings release while the GSEs accountants continue to crunch numbers to determine if the company should take a lucrative but complex tax deduction. In a form 12b-25 filing with the Securities and Exchange Commission, Fannie requested a filing extension beyond its March 18 deadline because it needs more time to analyze its deferred tax assets, which are unused credits and deductions that can be used to cover future tax bills.The release of the valuation allowance would have a material impact on the companys 2012 financial statements and result in a significant dividend payment to the U.S. Treasury, noted Fannie in its SEC filing.
Nearly all banks and thrifts gradually increased the fair market value they calculated for their mortgage servicing rights during the fourth quarter of 2012, according to a new Inside Mortgage Trends analysis of call report data. At the end of the year, banks and thrifts serviced a total of $5.323 trillion in home mortgages for other investors and they valued these MSRs at $41.43 billion. The ratio of fair market value of the MSRs to unpaid principal balance of loans serviced for others was ... [Includes one data chart]
Most mortgage banking firms both bank and nonbanks alike have been posting record profits over the past year, creating the pleasant problem of what to do with all that cash. According to interviews conducted by Inside Mortgage Finance over the past few weeks, certain nonbank owners have been taking cash out of their companies, using the money to pay hefty tax bills. Others have been leaving money in the company and searching for ways to shelter income. One way to do that, according to some tax experts, is to retain originated servicing rights. This is...