Freedom Mortgage reported continued growth in originations in the second quarter of 2014, largely driven by correspondent production. The nonbank has focused on agency mortgages with strong underwriting, retaining servicing on the loans. Freedom had $5.72 billion in originations in the second quarter of 2014, a big 48.7 percent increase from the previous quarter and up 31.1 percent compared with the second quarter of 2013. Officials at the nonbank touted Freedom’s strength while originations have declined overall. “While the mortgage industry is experiencing a downturn, Freedom Mortgage has increased...
While affluent borrowers prefer to obtain mortgage financing from their primary bank, some in this category are willing to shop, particularly when competing lenders offer lower interest rates or more attractive loan products.
While re-REMIC issuance is currently increasing, volume is nowhere near the levels seen in 2009 and 2010 when $60 billion in such product came to market.
“There’s lots of talk of companies being for sale right now,” said Paul Hindman, managing director of Management Advisors Executive Search, “but not too much talk of deals closing.”
Flagstar, a thrift that is also the largest remaining depository in the table funding sector, earned $25.5 million in the second quarter compared to a $78.9 million loss in 1Q.
One critic of the report on nonbank risk had this to say: “It’s just ridiculous what they [the IG] get away with. There’s risk in every business. Don’t they get it?”
Criticisms about servicing seem to be stubbornly resistant to much improvement, however, hovering in the 3,000 to 4,000 range for the last six quarters.
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