Old Republic International has abandoned plans to recapitalize its mortgage guaranty subsidiary for lack of investor interest and will tap its own resources to boost the regulatory capital of its ailing MI companies while trying to pay off remaining claims, according to top company executives. The decision was due to ORI’s unsuccessful bid to attract new investors under the terms and conditions laid out by the RMIC Companies, which constitutes Old Republic’s consumer credit indemnity and mortgage guaranty lines of business. The two operations are currently in runoff mode and have not written any new business since 2008 and 2011, respectively. While the failure to attract fresh funding was disappointing, it does not change...
Among other things, the proposed Mortgage Securities Cooperative would be the only issuer of government-backed MBS. The MSC would be governed on a one-member, one-vote basis.
As former Fannie Mae executive William Maloni put it: “More money for Uncle Sam!” The Treasury Department ultimately will benefit since it gets to “sweep” almost of Fannie’s and Freddie’s earnings.
The scorecard was ushered in by former Acting Director Edward DeMarco who stepped down from his post in early January, to be replaced by former North Carolina Congressman Mel Watt.
In return, FHFA's pending lawsuits will be dismissed with prejudice and Bank of America and its affiliates will be released from all securities law and fraud claims, as well as certain other claims related to the non-agency RMBS in dispute.
The government’s plan to wind down Fannie Mae and Freddie Mac is wrongheaded and would result in lower housing prices, economic harm and higher unemployment. So says well-regarded bank analyst Richard Bove of Rafferty Capital Markets.
Nonbanks had an average of 400 loans per full-time employee in the fourth quarter of 2013, according to Fitch, up from about 300 loans per full time employee in the second half of 2012.
Addressing CFPB officials at the American Bankers Association’s government relations conference in Washington, one community banker from Oklahoma reported survey findings that one-third of respondents in the state are no longer offering residential mortgages.
According to a new research note from Sterne Agee, 65 percent of Altisource’s reported revenue is tied to Ocwen or Ocwen-related companies. “This is a highly symbiotic relationship," writes Stern Agee analyst Henry Coffey.
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