In the pre-crash days, newly created MSRs were selling at 6 and even 7 times the servicing fee. “I even saw prices of eight,” said Chuck Klein, managing partner for Mortgage Banking Solution.
One mortgage technology expert had this to say on the Ellie Mae shutdown: “This is going to get ugly. Real money is lost when you can’t close loans on time.”
One executive, requesting his name not be used, said, “It completely wrecked our last day of the month. We were unable to sending closing packages, send disclosures, export files and such.”
Inside FHFA Lending also found another interesting trend: The top 50 HECM lenders are dominated by nonbanks, some of which are relatively new to the space.
Whatever happened to the sale of Cole Taylor Mortgage, which has been in the works for nine months or so? Good question. When we asked one source close to the deal, his response was this: “Think of the Energizer Bunny but with fairly old batteries.
Some banks and thrifts have been able to originate enough new mortgages to replace runoff from their portfolios, but the industry’s retained holdings of first-lien mortgages continued to decline in the fourth quarter of 2013, according to a new ranking and analysis by Inside Nonconforming Markets. Banks and thrifts held a total of $1.74 trillion in first-lien mortgages as of the end of 2013, down only 3.0 percent compared with the end of 2012 ... [Includes one data chart]
In the end, it's all about yield, which is why investors are going after "esoteric" ABS. Will non-prime MBS ever stage a comeback, even a mini-comeback?
Agreeing to speak only on background, some mortgage participants thought that ORI’s recapitalization plan raised serious concerns among potential investors.
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