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Freddie Mac Reports $2.2B Profit for 1Q17, Down Quarterly Due to Less Refinancing

May 4, 2017
Freddie Mac continued to make a profit in the first three months of 2017 but its net income slipped to $2.2 billion, a 54.2 percent sequential decline from the previous quarter, according to the government-sponsored enterprise’s earnings statement published this week. The GSE attributed the decline to a reduction in market-related gains with interest rates and spreads remaining steady. There were fewer refinance transactions, and non-cash hedging gains disappeared during the quarter. Freddie’s core business of collecting guarantee fees continued...
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Short Takes: At Impac, a Nice Paycheck for Two Executives / Some History / A Strong Comeback / Invitation Completes Fannie Mae Deal / RedVision Hires Altisource Exec

May 4, 2017
Paul Muolo
The two top executives at Impac Mortgage Holdings took home a combined $13.22 million in pay last year...
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Mortgage Execs at Public Firms Got Big Paychecks in 2016 that Didn’t Always Match Results

May 3, 2017
Paul Muolo
Denmar Dixon, who stepped down as CEO of Walter Investment Management Corp. last year, received $6.62 million in total compensation for 2016 while the company posted a net loss of $529 million.
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Ocwen Reports a $32.6 Million Loss for 1Q17. State Sanction Tally Rises to 31

May 3, 2017
Paul Muolo
Ocwen’s management noted there is no guaranty the deal with New Residential will actually close.
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Short Takes: Mnuchin to the GSEs: Keep Those Checks Coming / Speculation on a Payment Change / Ocwen Makes Some Headway / 735,000 Loan Mods and Counting / First Mr. Cooper, Now Morty

May 3, 2017
Paul Muolo and Brandon Ivey
Perhaps the new Treasury secretary finally looked at the numbers, realizing that Fannie and Freddie – wards of the government since September 2008 – forked over roughly $20 billion to Uncle Sam…
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Nonprime Lender Deephaven Passes the $1.0 Billion Mark in Loan Acquisitions

May 2, 2017
Brandon Ivey
Deephaven CEO Matt Nichols is a former managing director at Goldman Sachs & Co.
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FHA/VA Default Rates Down in Early 2017, Some Sharply

May 2, 2017
John Bancroft
The number of FHA loans 30-60 days past due declined by 28.4 percent, lowering the delinquency rate by 1.51 percentage points…
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Freddie Profit Slips to $2.2B as Hedging Gains Disappear; ‘Account Surplus’ with Uncle Sam to Hit $36.9 Billion

May 2, 2017
Paul Muolo and Carisa Chappell
Since the fall of 2008, Treasury has controlled the senior preferred stock in Freddie and Fannie, making the U.S. government the de facto owner of the two - and the linchpin to the housing and mortgage markets.
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Jumbo Originations Down Sharply in 1Q17, but Lenders Remain Optimistic

May 1, 2017
Brandon Ivey
While jumbo production fell on a sequential basis, many lenders saw a gain when compared to the same quarter a year earlier…
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At Secondary Conference, MBA Chief Calls GSE Recap & Release ‘Crazy’

May 1, 2017
Paul Muolo
Stevens credited the Federal Housing Finance Agency with making “significant progress” in fixing the flaws of Fannie and Freddie...
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