The Blackstone Group this month filed its long awaited initial public offering document on its Invitation Homes unit, a pioneer in single-family rentals and securitization of these assets. The 1,300 page Form S-11 is chock full of financial details on the real estate investment trust, including the revelation that the company continues to lose money. Through the first nine months of 2016 – the latest available data – Invitation Homes posted a net loss of $51.6 million compared to a $121.7 million loss in the same period a year earlier. The numbers and commentary in the filing indicate...
With interest rates up 75 basis points since the election – and staying there, at least for now – residential production is likely to slip in the quarters ahead, leading to layoffs, especially at firms that focus on refinancings. “It’s coming,” said industry consultant Don Henig, a former top sales executive for loanDepot, a top-10 ranked originator. “Maybe we haven’t seen too many layoffs quite yet, but just look at volume numbers and do the math.” Henig added: “Right now, a lot of shops ...
The recent run-up in mortgage rates appears to have suppressed short-term home purchase expectations among prospective homebuyers, who nonetheless otherwise feel optimistic about the housing market over the longer term, according to new data from government-sponsored enterprise Fannie Mae. Fannie’s latest Home Purchase Sentiment Index (HPSI), released earlier this week, dipped 0.5 points to 80.7, the fifth consecutive monthly decline. The index is down ...
The New York Department of Financial Services made some concessions to industry participants by revising proposed cybersecurity standards. Some mortgage-industry officials were happy with the revisions while reiterating concerns about the proposed standards. The NYDFS first proposed cybersecurity standards in September. The proposal was the first of its kind from a state regulator and more prescriptive than guidance from the Federal Financial Institutions Examination ...
While mortgage interest rates remain at historic lows, an increase of even one percentage point is not going to have a dramatic effect on affordability and any negative homebuyer response to rising rates is likely to be short-lived, according to a new Redfin survey. Even if mortgage rates climb to 5 percent, homebuyers would lower their expectations and shop for less expensive homes, said 49 percent of the 827 Redfin real estate agents who responded to the survey. Redfin conducted ...
Black Knight Financial Services is developing a mortgage-specific credit score that could be more useful for lenders than traditional credit scores. It’s not clear how much traction the score will gain, considering that Fair Isaac’s FICO score remains the dominant metric for assessing the creditworthiness of mortgage borrowers. Wesley Winter, a senior modeler at Black Knight, said a traditional credit score may not be the best predictor of mortgage default. “The FICO score is trying to ...
Mortgages guaranteed by the Department of Veterans Affairs accounted for 29.4 percent of insured home loans securitized in the agency mortgage-backed securities market in the fourth quarter of 2016, a new Inside Mortgage Trends analysis reveals. That was up from a 27.2 percent share for the VA during the third quarter. The home-loan guaranty program has become a refinance dynamo, accounting for a whopping 44.6 percent of insured refi loans ... [Includes one data chart]
Banks and nonbanks alike are expected to unveil sizable mark-ups on the asset value of their mortgage servicing rights for the fourth quarter, with the general consensus being that increases will range from 20 to 25 basis points. One servicing advisor, requesting his name not be used, said he has some clients that will book gains of 30 to 35 bps, though he indicated this won’t be the norm. “In general, it’s going to be a huge move,” he said. This source made...
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