Liquidity problems may be a major driver of increased merger and acquisition activity in 2019. Although bulk MSR buyers may be taking a pause to parse interest-rate trends, volume is expected to be strong this year.
The parent company of HomeStreet Bank last week said it is looking to sell its standalone home loan centers and a majority of its mortgage servicing rights. Officials at the Seattle-based lender cited a number of factors for the divestiture, including reduced demand for refinances and regulatory issues specific to banks.
The New York Department of Financial Services last week rejected Fidelity National Financial’s application to acquire control of Stewart Information Services’ NY-based title insurance company.
BB&T Corp. and SunTrust Banks late in the week unveiled plans to merge in a deal valued at $66.0 billion, one that will create, pro forma, the nation’s ninth-largest home originator as well as the ninth-largest servicer.
Just days into the new year, Mr. Cooper agreed to buy Seterus and its $48.0 billion servicing platform. Now comes the big question: Which firm or portfolio is next on its hit list?
It was a busy week for channel and branch disgorgements with two national lenders announcing transactions they hope will prepare them for a difficult market in 2019.
The California-based lender worked out an arrangement to take over 14 branch offices from RPM Mortgage, most of them in New Hampshire, and pick up about $650 million in annual lending capacity.
“We’re in a very challenging and turbulent time,” says a top mortgage consultant who predicts an intense period of industry consolidation through 2019 and perhaps beyond.
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