There was some positive news in the form of originations. Ocwen funded $412.2 million in forward and reverse mortgages in 3Q, declaring that its annualized run rate (based on October production) now totals $2.6 billion.
Meanwhile, PennyMac Mortgage Investment Trust, a REIT affiliate of the nation’s fifth largest home lender, plans to offer $200 million worth of senior notes, also due in 2024. PennyMac has yet to publish the yield.
The Federal Reserve cut rates by 25 basis points this week, assuring mortgage lenders strong operating conditions in the months ahead. Still, the production outlook is a bit darker for 2020.
It might be easier to sell stock in a reconstituted Fannie and Freddie after the old companies are wiped out through receivership and “new” entities are created. FHFA has the power to sell the charters but not the legal authority to issue new charters.
Nonbanks dominate in residential lending nowadays but at least in multifamily finance they have a bit of girth. The analysis is based on 2018 HMDA data. (Includes data chart.)
Fannie and Freddie once again posted strong earnings but the results would have been even better if not for large hedging charges. (Includes data chart.)
Three names are being kicked around to head Ginnie Mae, the government’s $2 trillion MBS guarantor: Robert Couch, Clinton Jones and Joe Murin. But is something else afoot?