MBS investors are keeping a close eye on the auction of Ditech Financial. The troubled nonbank is a top-ranked servicer of Ginnie Mae product. The biggest fear: The company will run out of cash.
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?
It's common knowledge in the industry that the Treasury Department is working on a recap-and-release plan for Fannie Mae and Freddie Mac. To pull off such a massive undertaking the government will need an investment banker. But who?
Freddie CEO Don Layton: "People tell me, ‘Well, let’s have a common AUS that everyone can use.’ My only data point on that is that to have a common system on the backend for the security (UMBS) took seven years and $2 billion to build…”
Thanks to today’s high loan balances, a 50-basis-point drop in rates can do wonders for the refi market, but is bad news for companies that have large servicing portfolios to unload...