“The originations segment now acts as a much stronger macro hedge for our servicing operation, and we believe it will play a major role in helping us achieve our profitability and shareholder return targets,” said Jay Bray, Mr. Cooper’s chairman and CEO.
Mark Garland, managing director of Situs AMC, notes the readings can be misleading because many publicly traded companies hedge their positions, which means although an MSR writedown occurs in one column, a gain is recorded elsewhere.
Across the board, lenders are reporting stellar origination growth from the first to second quarters of the year, but the last two application surveys from the Mortgage Bankers Association showed weekly declines of 1.9% and 1.1%, respectively…
According to new figures released by Black Knight, mortgage prepayments declined by 7.5% in June despite mortgage rates being under the 4.0% threshold. The data analytics firm said it was the first decline in prepays in five months. Go figure…