This morning, on the heels of JPM’s results, nonbank United Wholesale Mortgage, reported third quarter originations of $54.2 billion, a sequential gain of 31.8%. UWM also disclosed period earnings of $1.5 billion, a record for the soon-to-be-public company.
The reason for the decline: Many borrowers saw their forbearance plans expire because they did not contact their servicer. At least, that’s what MBA concluded.
The overall number of loans declined as borrowers whose loans were not in forbearance took advantage of low interest rates to refinance. Ultimately, Fannie’s net forbearance rate only declined about 1.0% in June, WFS said.
In other words, in a market sized at roughly $2 trillion, and with total delinquencies measured at $218.9 billion (according to Ginnie’s website), the so called COVID-19 liquidity crisis never arrived...
Despite what looks like good news, Black Knight warned there are another 800Kforbearancesreaching the end of their initial six-month terms over the next 30 days...
Caliber is worried that if interest rates rise from current levels, the volume of prepayments and mortgage payoffs is likely to decline, which will reduce the cash available to fund servicing-advance obligations.
Consultant David Lykken believes how well a lender can downsize its operations when business slows will determine whether its stock price gets crushed...
The rescission of the bulletin does not mean MSAs are presumably legal. Instead, it will depend on how the business relationship is structured and implemented.
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