Credit Suisse issued two more series of notes this week on its mortgage-lending warehouse securitization offering, according to Moody’s Investors Service. The $1.20 billion in total new issuance from the Wall Street firm followed two notes it issued in August totaling $800 million. As with the August issuance, the new Mortgage Repurchase Agreement Financing Trust, Series 2016-3 and Series 2016-4, received A2 ratings from Moody’s. All of the deals were underwritten by Credit Suisse and HSBC Securities. The transactions are backed...
The nine major publicly traded nonbanks active in mortgage banking saw a significant improvement in earnings during the third quarter, but two firms continued to book losses, according to a new Inside Mortgage Trends analysis of quarterly earnings reports. As a group, the nine nonbanks generated $129.7 billion in mortgage-banking income during the third quarter, a major improvement from their combined $339.5 million loss in the previous period ... [Includes one data chart]
PennyMac Financial Services continued to excel in terms of profitability in the third quarter, as officials cited a “distinctive” hedging strategy, among other efforts. PennyMac had $122.3 million in net income in the third quarter of 2016, up 64.6 percent from the previous period and nearly double the net income it reported a year ago. While interest-rate volatility tends to wreak havoc on earnings, Stanford Kurland, PennyMac’s chairman and CEO, said better-than-expected hedging ...
Mortgage lenders delivered a slightly less risky assortment of single-family loans into Fannie Mae and Freddie Mac mortgage-backed securities during the third quarter of 2016, according to a new Inside Mortgage Trends analysis. Some 11.62 percent of purchase mortgages securitized by the two government-sponsored enterprises had low credit scores and high loan-to-value ratios during the third quarter, down from 11.79 percent in the previous ... [Includes two data charts]
As yearend approaches, growth-minded nonbank mortgage firms continue to hire new workers while commercial banks are taking a cautious “wait-and-see” approach, according to interviews conducted by Inside Mortgage Trends over the past two weeks. “We continue to grow and are currently hiring across the board – technology, mortgage banking, underwriting, marketing and more,” said Jordan Fylonenko, a spokesman for nonbank Quicken Loans, the nation’s second ...
Homebuilders are optimistic about the rising trend in the housing market for persons 55 years of age and over. The National Association of Home Builders’ 55+ Housing Market Index showed an increase of two points to 59 in the third quarter from the previous quarter. That marks the 10th consecutive quarter in which the index has risen above the break-even point of 50, according to the trade group. The two-point increase suggests that more builders view housing-market conditions ...
The average age of first-time homebuyers tied a record high this year, and many potential first-time homebuyers are having difficulties finding affordable properties and saving for a downpayment, according to the National Association of Realtors. NAR’s annual profile of homebuyers and sellers found that the median age of first-timers was 32, up from 31 over the past five years. First-time homebuyers accounted for 35.0 percent of home purchases in 2016, up from a ...
Balancing technological advances in the mortgage space with safety and soundness can be challenging, but it should be considered a priority, according to industry experts on a recent panel in Washington, DC, sponsored by the Urban Institute and CoreLogic. Quicken Loans launched its Rocket Mortgage early this year at a time when an avalanche of new regulations had the industry back on its heels. “While many in the industry were playing a lot of defense, and rightfully so ...
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