Equities watcher Henry Coffey writes: “As the largest player in the wholesale or broker direct channel, UWM does have some pricing power, and over time, we are expecting to see pressure on margins ease and the big three to five players in the market settle into a more balanced cadence…”
Additional non-agency MBS with GSE-eligible mortgages for investment properties are expected due to new limitations on Fannie/Freddie acquisitions of such loans.
In the absence of the GSE patch, lenders have fewer incentives to rely on GSE eligibility when determining a loan’s QM status. Still, the final destination of a loan will depend on pricing in the non-agency market.
PennyMac's income fell by 17% on a sequential basis in the first quarter, originations declined by 3.5% while the nonbank's servicing portfolio grew by 5.2%.