HUD has been steadily auctioning off nonperforming mortgages the past few months. Sources in the market disclosed to IMFnews who some of the winning bidders are. They include: Credit Suisse, Ellington, Kondaur, PIMCO and Varde.
Industry observers who closely follow the GSEs predict that other private-equity firms and hedge funds will continue to buy the preferred and common shares of Fannie and Freddie, believing they can flip the stock for a quick profit or receive a pay-out down the road.
Lobbyists and analysts who track the market are unanimous on one key issue: GSE loan limits. From what were told, Watt will shelve any thought of lowering the Fannie Mae/Freddie Mac mortgage limit in 2014.
With refinance volume falling and minimum net-worth requirements heading north, advisors in the mergers-and-acquisitions market say undercapitalized firms should sell now, while they still can. Larry Charbonneau, a principal of Charbonneau & Associates of Texas, said he is currently working on four deals but noted that, There a lot of shops out there with less than $5 million in capital that need to do something but havent realized it yet. Although Fannie Mae and Freddie Mac have net-worth minimums in the $3 million range, there is...