The new housing law’s restriction on large institutional investors’ ability to purchase single-family homes could boost demand for investment-property mortgages from mom-and-pop investors.
A significant amount of wealth is expected to be transferred to younger generations in the coming years, leading to smaller mortgage amounts and a change in MBS characteristics.
Onity took a $9 million pre-tax net loss related to sales of reverse mortgages and legacy subservicing transfers, and a $24 million pre-tax net loss tied to unfavorable asset fair value changes.
Ben Jackson, president of ICE, said during an earnings call last week that the mortgage segment will be aided by a growing artificial intelligence business.
Agency MBS fundamentals have been supported by a combination of elevated mortgage rates, limited refinancing incentives, constrained housing turnover and low net supply.