Of course, there is a way to avoid the zero capital cushion dilemma. Congress can pass legislation to allow the GSEs to build capital or FHFA can act...
Meanwhile, refinance lending rose just 0.9 percent from the first to the second quarter, but still accounted for just over half of new originations during the period.
One possible catalyst for a MIP cut could be poor results from a forthcoming HMDA report that shows FHA as well as Fannie Mae and Freddie Mac are not servicing low-income borrowers very well.
In a recent SEC filing Two Harbors noted that after the second quarter ended it bought $4.7 billion of Fannie Mae servicing rights from an undisclosed seller.
Over the past year, small and medium-sized lenders have dominated the activity in the merger and acquisitions market, but all that could be changing as consolidation fever begins to gather steam and larger, struggling players consider a take-out strategy. Also, the recent announcement that the Blackstone Group would buy a majority stake in Stearns Lending – the nation’s 12th largest originator – has sparked hopes among investment bankers that potential sellers are finally lowering their expectations when it comes to price. An offering book on Stearns had been circulating for at least a year. Meanwhile, analysts who follow Stonegate Mortgage, which ranks 25th among originators, this week suggested...
The nation’s top-ranked warehouse lenders ended the second quarter with $27.2 billion of commitments on their books, a 9.6 percent sequential increase and a handsome 43.8 percent gain from the same period a year earlier, according to survey figures compiled by Inside Mortgage Finance. The entire warehouse sector, a universe that includes roughly 60 active lenders, posted similar gains as nonbank lenders in the primary market continued to increase market share, which in turn feeds their thirst for financing an ever-increasing pipeline. “Utilization rates have been...[Includes one data table]
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