Cowen notes: “…this latest flare up reinforces our view that Treasury is unlikely in 2017 to unilaterally change the profit sweep at Fannie and Freddie…”
Although Freedom is private, a few years back it launched a publicly traded REIT called Cherry Hill Mortgage Investment, which lately has been trading near its 52-week high.
Earlier this week, Flagstar closed on its purchase of the correspondent lending platform of Stearns Lending – a rare transaction where a depository was buying a key mortgage asset from a nonbank.