Originations are increasing, demand in the secondary market is strong and the interest rate premium on non-QMs is declining, helping to prompt more lending volume.
FHFA Director Mark Calabria: "That might be fine for a normal company, but these are companies that are in conservatorship. They’re essentially in bankruptcy.”
Calabria stressed the plan is process-based rather than calendar-driven. He also pointed out that the two mortgage giants will have to be adequately capitalized and make appropriate changes to their culture.
KBW on Ocwen: “While the company is setting up MSR [mortgage servicing rights] financing facilities, management noted returns on available MSR trended down, though the company did lower its targeted ROE [return on equity] on agency MSR to 8.5% from 9.5%."
“In the first quarter everybody was hating life,” said Michael Lau, CEO of Pingora Asset Management. “Now everybody is loving life. They have fat margins and origination pipelines are robust.”
RSS