The lender also recently formed a real estate investment trust, Parkside Mortgage Trust. Matt Ostrander, Parksides CEO, said the REIT plans to issue a non-agency MBS later this year or in 2015.
The hunger for GSE speculation is also causing some investors to buy Fannie/Freddie common which has been rising of late, but not by much. However, one GSE watcher believes that buying the common, "is a fools game."
Industry analysts predict that the New York ruling will limit rep-and-warrant claims on vintage non-agency MBS as well as future claims on recently issued jumbo MBS.
According to figures compiled by Inside Mortgage Finance, Flagstar is the nations second largest wholesale/broker lender. It also has a fairly large presence in the warehouse market.
Some GSE watchers fear that new Federal Housing Finance Agency director Mel Watt might slow GSE risk sharing deals but those concerns may be unwarranted.