BlackRock transferred $589 million of stock in PennyMac Financial Services, accounting for a 20% stake in the lender, to two of its affiliated charitable entities. BlackRock initially invested $34 million in PennyMac in 2008.
Despite talk that lenders would reduce loan originator compensation in 2019, comp increased on an annual basis. Lenders could reduce LO comp this year with refi business expected to decline.
Application programming interfaces have the potential to create efficiencies in the mortgage industry, though standardization is key, according to leaders spearheading an effort at MISMO.
The ways in which servicers interact with borrowers can play a major role in whether the lender/servicer will retain the customer, according to a Stratmor study. Borrowers tend to like email communication.
Fraud risk on purchase mortgages increased in November after falling for six consecutive months, according to First American. The risk could be contained as long as interest rates stay relatively low.
No rate hikes in 2020? A totally “neutral” Fed? We’ll see about that. Meanwhile, non-QM lenders Angel Oak Mortgage Solutions and Citadel Servicing have bulls in their eyes.
Purchase-mortgage production is seen steady while refi activity is expected to decline. Low refi demand will cut into lenders’ profit margins. (Includes data chart.)
The industry increased profits on the production side of the aisle by pushing a higher volume of business through their platforms, reducing per-loan costs for personnel, occupancy and technology. (Includes data chart.)
Some lenders that were looking to throw in the towel after a rough first quarter experienced strong originations and returned to profitability as interest rates fell, putting the brakes on M&A activity.
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