Lower interest rates resulted in strong originations in the second quarter, causing lenders to smile. But for firms with large MSR portfolios, asset writedowns were the norm.
The company filed for bankruptcy protection this week, a maneuver that could lead to a merger with Finance of America. What the two nonbanks have in common: both are owned by The Blackstone Group. But it’s hardly a done deal.
Quicken rarely talks about its presence in the wholesale/broker market, but the company recently named a new EVP Austin Niemiec in charge of the business. Meanwhile, some have pegged Quicken's wholesale volume at $5 billion a quarter. What's going on here?
Most of the decline in bank MSR activity in the first quarter was attributable to Wells Fargo, while Flagstar accounted for a big chunk of the increase among savings institutions.
Subservicing vendors continued to grow during the first quarter but a few firms saw a reduction in contracts. Cenlar remained the dominant player but Mr. Cooper, Flagstar and Ocwen are eager to compete. Meanwhile, consolidation looms.
Some of the sharp drop in non-agency jumbo securitization resulted from higher loan limits, but volume was buoyed by a large pool of seasoned loans sold to Freddie Mac.
The warehouse lending sector rises and falls depending on the origination volume of nonbank mortgage providers. The first quarter of 2019 yielded a 4.1% drop in loan production but warehouse commitments increased by 4.4%. Now, with rates headed lower, better days are ahead. But will it last?
We're halfway through the second quarter and MSR sales are middling, a byproduct of lower interest rates and what may lie ahead. However, dealmakers believe 2H could bring a boom in sales activity.
Conventional-conforming lending still accounted for over half of first-lien originations in early 2019, but the sector also saw the biggest rate of decline from the previous period. Booming refi business helped the jumbo market.
New primary mortgage insurance activity was down in the first quarter of 2019, but FHA and VA managed to expand their share of the market thanks to surging refinance business. Private MIs started the year slightly ahead of the pace in early 2018.
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