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.
Speculation continues to grow concerning which nonbanks have looked at buying PHH Mortgage. Our sources caution that “looking” doesn’t mean a deal is close. PHH is based in Cherry Hill, NJ, not too far from Philadelphia. One advisor suggested we look at who has been flying in from points south.
The extended time on market for short sales does not appear to be due to a lack of demand, as short sales completed in February averaged 3.1 offers, based on a three-month moving average.
In a recent interview with IMFnews, Carrington Executive Vice President Ray Brousseau stressed that the privately held nonbank will carefully and manually underwrite the loans, which will be sourced through loan brokers.
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.
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.
Fannie and Freddie issued $44.6 billion of single-family MBS in February, a 5.1 percent decline from January and a stunning 62.0 percent drop for the first two months of 2014 when compared to the same period in 2013.
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.
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.
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