Servicing values slipped in the fourth quarter, a victim of lower interest rates from mid-October to yearend. Hedging helped, but weaker escrow values played a role as well.
The mortgage industry this week lamented the passing of Dave Stevens, who held several key jobs in residential finance, including both regulator and trade group CEO.
During the COVID crisis Stevens served as an unofficial policy advisor to elected officials and regulators, making the case for interest rate cuts and liquidity measures.
The repo market continues to be a source of liquidity for nonbanks with large mortgage servicing portfolios. One recent transaction involves a $500 million credit granted to loanDepot by Goldman Sachs and others.
The latest mortgage rumor in the nation’s capital: President Biden might turn to Fannie and Freddie in an attempt to push down borrowing rates, thus aiding his reelection chances.
Based on a new proposal, it would seem that banking regulators are paying closer attention to how much money federally insured depositories are lending to nonbanks.