Six weeks into the new year and it appears that merger-and-acquisition activity in the mortgage industry is finally picking up – big time. Over the past 10 days, several – mostly “asset” related – deals have come to light, with the action being driven by private-equity money that’s backing nonbank lenders. Wall Street giant The Blackstone Group, which has a PE division, is involved as well. So far, the only depository that appears to be playing in the M&A surge is...
In a new annual letter to shareholders, Fairholme Capital Management once again lays out its argument for investing in Fannie Mae and Freddie Mac stock, trying to explain to its wealthy investors that it feels more secure in owning junior preferred shares than common stock. Among other things, Fairholme said the preferred stock “provide(s) us with greater security and certainty than the common stock and, as you know, we are not speculators.” When it comes to a liquidation preference, preferred shareholders are senior to common shareholders, who often receive nothing when a company goes bust. But Fairholme’s problem – one shared by other firms that still own this class of stock – is...
Home prices in 2016 soared as a number of metropolitan areas reached record new home price highs, according to ATTOM Data Solutions’ yearend report on home sales. Among 201 metropolitan statistical areas with populations of at least 200,000, 44 percent hit new all-time home price peaks last year. Those areas include Dallas-Fort Worth ($230,571), Houston ($214,795), Atlanta ($181,000), Boston ($390,000) and San Francisco ($720,000). Three Ohio markets, Cincinnati, Columbus and Dayton, also reached...
A number of factors – including misconceptions – are preventing some potential homebuyers from pursuing purchase mortgages, according to the National Association of Realtors. The trade group said it has found “real and imaginary barriers holding back prospective homebuyers.” The so-called imaginary barriers involve potential borrowers’ perceptions about downpayment requirements. “Apparent confusion about downpayment requirements may be...
Dave Akre, who runs Whole Loan Capital, noted, “How can they stay in the mortgage origination business when servicing is a huge part of the borrower experience?”
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