Two large REIT investors in agency MBS incurred losses in the second quarter, due to interest rate volatility and an unaccommodating monetary policy stance. Still, they are optimistic about the future.

Rithm will restate financials going back to 2021; commercial lending executives expect MBS issuance to remain strong; new wildfire risk mitigation recovery bond.

Mr. Cooper will pay $1.4 billion for Flagstar Bank's servicing portfolio and third-party originations platform.

Pre-tax income in the servicing segment hit $354 million in the second quarter, including a mark-to-market gain of $68 million.

The real estate investment trust’s gains on derivatives weren’t enough to overcome losses on investments.

“Improvements in problem resolution and satisfaction with digital channels are the primary drivers of this year’s higher scores,” J.D. Power said of servicer satisfaction.

Mortgage production at the midway point was up a scant 4.1% compared with the first half of 2023. Originations increased sharply on a sequential basis in the second quarter due to a seasonal trend. (Includes two data tables.)

Interest rates on mortgages declined in May and June but demand for purchase mortgages remained constrained. Industry participants aren’t optimistic that production will pick up much through the rest of the year.

FHA purchase-mortgage volume increased 21.4% from the first to the second quarter, based on agency MBS activity. But GSE volume — both with and without private mortgage insurance — increased by more. (Includes three data tables.)

A decline in interest rates wasn't enough to help push up applications of purchase mortgages last week.