Fannie economists demonstrate that mortgage expenses only account for about 30% of homeownership costs, with g-fees accounting for just a small fraction of that.
With interest rate trends pushing the mortgage industry toward a down cycle, nonbanks reported a decline in fourth-quarter earnings. Margins remain a hot topic among the biggest players in the market. (Includes data chart.)
Finance of America had more than $1 billion of goodwill at the end of September. In the fourth quarter, the company determined its stock price was too low to recognize the benefit, prompting a massive loss.
Analysts at Fannie Mae looked at 14 components that go into the cost of purchasing a home, along with ongoing expenses. Costs related to the mortgage accounted for roughly 30% of the overall cost.
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Spreads on MBS involving non-qualified mortgages have widened due to rising interest rates and excess supply. However, demand is on the rise again as new buyers are entering the space.