Rep and warrant insurance, which covers corporate functions and not loan-level issues, has increasingly been used in mergers and acquisitions outside of the mortgage industry.
Nonbanks with large servicing portfolios are generating high margins from originations. The production is focused on agency mortgages, as nonbanks have largely stopped originating non-agency loans.
Is warehouse credit getting so tight that some nonbanks are considering ei-ther purchasing or becoming affiliated with a federally insured depository? Looks that way.
Banks increased reserves for loans held in portfolio during the first quarter on implementation of new accounting standards. Many delayed the impact of CECL on regulatory capital.
Lenders and servicers alike are facing huge challenges due to the coronavirus, with many rising to the operational challenge. However, when it comes to MSR sales, the picture is bleak.
RSS