MSR prices, especially for conventional low-coupon product, have firmed up nicely. Some large holders are cashing in. But others are choosing to live off processing income until originations snap back.
When the Federal Reserve begins cutting rates next year, the mortgage industry will become “fat” again. At least that’s what some believe. The immediate challenge: surviving until then.
MBS holdings at Fannie and Freddie are a shadow of what they used to be. Then again, being in a conservatorship that just celebrated its quinceanera will do that to you.
The business of subservicing loans for others continued apace in the second quarter with modest growth. The good news: Delinquencies are low but some lenders that source the loans are going bust. (Includes data chart.)
Profit margins are tight in wholesale but that isn’t stopping EPM owner Eddy Perez from converting his national shop into a table-funding-only producer. Will it work? We’re about to find out.