In the smoke and dust of a production collapse is the best time to be a buyer of other shops. That’s the philosophy of CMG Mortgage, now a top-20-ranked lender that should continue to climb in the league tables.
Loan buyback demands don’t seem to be an issue in the world of non-QM lending, at least not yet. But that could change, especially for low-capital originators who get swamped by aggregator demands, even on performing mortgages.
The current bad times for lenders can’t last forever. Eventually, the Federal Reserve will ease credit and normalcy will return to the industry. But before we get there, more job cuts will be the order of the day.
Many owners of MSRs will have an opportunity to mark up the asset value of their holdings when reporting third-quarter results. However, the gains likely won’t be all that large.