The nonbank expansion has eased over the past few quarters because once-hungry buyers of receivables such as Ocwen, Nationstar and Walter Investment are no longer gobbling up huge portfolios.
In 2013, Provident Funding Associates of California was the second largest originator of home mortgages through loan brokers, but it has fallen from that high perch in recent quarters. Moreover, there have been recent reports that the privately held nonbank may significantly trim the number of states where it’s willing to accept submissions from brokers. Wholesalers and brokers alike told Inside Mortgage Finance they have heard talk of a large-scale pullout by Provident in multiple states, but have seen nothing definitive. According to agency mortgage-backed securities data compiled by Inside Mortgage Finance, Provident was active with brokers doing business in 41 states over the first nine months of 2014. One broker trade group official, requesting anonymity, said...
Private mortgage insurers would welcome the return of conventional 97 percent loan-to-value mortgages from the government-sponsored enterprises, but analysts say it might not be a slam dunk. The private MI industry has been encouraging the GSEs, particularly Fannie Mae, to bring back the 97 percent LTV product to compete with the FHA’s main product, which requires just a 3.5 percent downpayment. For years, Fannie offered...
Fannie Mae and Freddie Mac reported a combined $6.0 billion in net income for the third quarter of 2014, up from $5.1 billion in the previous quarter. The two government-sponsored enterprises will send to the Treasury $6.8 billion as return on the government’s senior preferred stock. That will bring cumulative payments under the GSE conservatorships to $225.5 billion. Fannie and Freddie were given...
With the Republicans poised to take control of the U.S. Senate and having gained an even greater GOP majority in the House, legislative conversations surrounding housing finance reform should return to Capitol Hill, but few political commentators believe a bill can actually be passed. Control of the Senate swung back to the GOP for the first time since 2006 after the polls closed, as Republicans now enjoy a 52-45-3 majority in the Senate. However, the race in Louisiana between incumbent Democrat Mary Landrieu and Republican challenger, Rep. Bill Cassidy is headed...
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