Dave Akre, who runs Whole Loan Capital, noted, “How can they stay in the mortgage origination business when servicing is a huge part of the borrower experience?”
PHH Corp., for years, has been trying to unload its entire mortgage franchise, a process complicated by both regulatory sanctions and large accounting losses tied to declining interest rates.
The business that Flagstar will acquire has 250 correspondent relationships that account for roughly $7 billion in production tied to agency and GSE loans.
Tom Hutchens of nonprime originator Angel Oak Mortgage Solutions said his shop presently employs 44 wholesale account executives and plans to hire 60 more over the next 18 months.
When it comes to cashing out of large blocks of GSE common stock, sellers face the ‘Roach Motel’ syndrome: investors check, but can’t necessarily check out…