Mortgage lenders generally earned more on their servicing operations than on production activity during the first quarter of 2014, according to an Inside Mortgage Trends analysis of earnings reports from firms that disclose such information. The 10 companies in the sample group reported a combined $850.4 million in production-related income during the first three months of 2014, compared with $1.33 billion in servicing income ... [Includes one data chart]
Fannie Mae late last week priced its third credit risk-sharing deal of 2014. The $2.05 billion note is the government-sponsored enterprise’s fourth and largest transaction under its Connecticut Avenue Securities series since the Federal Housing Finance Agency ordered both Fannie Mae and Freddie Mac to shrink the GSEs’ role in the U.S. housing market last year. In its latest offering – Series 2014-C03 – Fannie included reference loans with original loan-to-value ratios of up to 97 percent and “is consistent with prior transactions.” Previous C-deal offerings included reference loans with up to 80 percent LTV ratios. “We’ve continued...
While affluent borrowers prefer to obtain mortgage financing from their primary bank, some in this category are willing to shop, particularly when competing lenders offer lower interest rates or more attractive loan products.
While re-REMIC issuance is currently increasing, volume is nowhere near the levels seen in 2009 and 2010 when $60 billion in such product came to market.
Flagstar, a thrift that is also the largest remaining depository in the table funding sector, earned $25.5 million in the second quarter compared to a $78.9 million loss in 1Q.
Criticisms about servicing seem to be stubbornly resistant to much improvement, however, hovering in the 3,000 to 4,000 range for the last six quarters.
A signing bonus for an LO sounds nice, but keep in mind that a lender has to find a way to pay for that bonus, which could result in an increase in pricing.
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