Since mid-September, four nonprime-related M&As have either been announced or have come to light through market sources: Deephaven Mortgage’s acquisition by Pretium Partners; Redwood Trust’s purchase of CoreVest American Finance and Citadel Servicing’s takeover by HPS Investment Partners. And now the Luxury deal.
In a recent filing, Fannie Mae made clear its displeasure with the pay caps placed on the company by the FHFA and Congress. Interestingly, Freddie Mac had a more muted response.
In another example of a REIT branching out, Starwood Property Trust has agreed to purchase a licensed lender/servicer. For now, all parties are mum but more deals may be afoot.
It was a bravura performance for the FHA’s Mutual Mortgage Insurance Fund in fiscal 2019. The MMIF ended the year with a capital ratio of 4.8%, more than double the statutory minimum.
FHFA Director Mark Calabria: "That might be fine for a normal company, but these are companies that are in conservatorship. They’re essentially in bankruptcy.”
The non-QM market has been so hot this year that M&A activity is beginning to pick up a head of steam. Luxury Mortgage is the latest lender to pull the sale ripcord. There could be more.
One of these days, the two mortgage giants will commence with a new stock offering. Right? The market seems to be betting on the fact, as are the government-sponsored enterprises.
Ocwen Financial may have some MBS-related exposure, according to a new regulatory filing. Also, FHFA Director Mark Calabria opens up some more about the business practices of Fannie and Freddie.