PHH Corp. and Nationstar Mortgage – both top 10 ranked residential servicers – recently filed to sell debt securities, an odd situation for two companies struggling with low share valuations amid a lack of confidence among both investors and stock analysts. The lender/servicers also have unveiled stock buyback programs, though such announcements usually represent a desire to do so, and not a contractual obligation. PHH’s Form S-3 filing with the Securities and Exchange Commission offers...
It’s too soon to tell whether marketplace lending will disrupt traditional mortgage lending, but analysts such as Freddie Mac economist Sean Becketti predict that the alternative, Internet-based lending structure will have an impact. “Will marketplace lenders become an Uber-like disruptive force in consumer lending, or are they simply old-fashioned consumer lending dressed up for the Internet?” asked Becketti. “It's too soon to tell.” But the swift growth of the industry, coupled with its emphasis on Internet outreach and novel underwriting practices, has led...
Overall, Ginnie securitization of FHA and VA purchase loans increased by 37.7 percent and 37.9 percent, respectively, during the third quarter, according to Inside Mortgage Finance’s database.
“There is no policy rationale for the federal government to continue to subsidize the portion of mortgages that exceed $500,000,” said Sheila Crowley, NLIHC’s president and CEO.
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