Will the third quarter be better than the second for originators? Looks that way. Meanwhile, mortgage M&A advisor Houlihan Lokey might wind up as one of Treasury's GSE advisors.
Mortgage M&A activity is on the light side these days. The reason: Home lenders are too busy originating new loans and reaping the profits. Unless rates spike, the situation is unlikely to change.
The transfer of bulk mortgage servicing rights was strong in the second quarter but dealmakers didn’t really feel it in the auction market. Investment bankers believe the second half could see strong MSR sale activity.
Earlier this year, Wells Fargo offloaded roughly $20.7 billion in Ginnie servicing rights. The buyers? A bank and a nonbank. Meanwhile, the Equifax data hack will cost upwards of $700 million in settlement costs.
Mortgage Grapevine: MSR auctions have been few and far between of late, but all that may soon change. Meanwhile, Stearns Lending has secured the cooperation of its largest bondholder, PIMCO, to reduce its debt load. Now, it's just a matter of time and working with the bankruptcy court.
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.
Thanks to sustained low interest rates, auctions of mortgage servicing rights are scarce these days, but not impossible. Investors are still interested but they're cautious. Meanwhile, loan production continues to increase.
Mortgage Grapevine: Rushmore is buying another origination platform, a sign that mortgage M&A could be on the rise again. Meanwhile, Fannie Mae is offering buyout packages to a select group of employees.
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