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Inside Mortgage Trends

September 2, 2016

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Seller Buybacks of GSE Loans Sank to Record Low in 2Q16, More Unresolved

Lender buybacks of mortgages sold to Fannie Mae and Freddie Mac may never completely disappear, but they are shrinking fast – especially when compared to soaring new business volume at the two government-sponsored enterprises. A new Inside Mortgage Trends analysis reveals that lenders repurchased, or made other indemnification, some $250.1 million of loans during the second quarter of 2016. That was the lowest quarterly ... [Includes two data charts] Read More

Bank Flight From MSR Continued in 2Q16

Commercial banks and savings institutions are continuing their years-long flight from the volatile business of holding mortgage-servicing rights on their balance sheets, according to a new Inside Mortgage Trends analysis of call report data. At the end of June, banks and thrifts serviced $3.916 trillion of single-family mortgages for other investors, usually mortgage-backed securities trusts. That was down 2.1 percent from the previous quarter and ... [Includes one data chart] Read More

Can PHH Be Sold Before More Problems Erupt?

It’s no secret that PHH Corp. is losing money and hopes for a buyout offer that will net stockholders something closer to its book value of $24 a share compared to its current price of $15. But the big question remains: Can PHH pull off a deal before more bad news swamps the company?In a recent 10-Q filing with the Securities and Exchange Commission, the nation’s ninth largest servicer of home mortgages noted that it’s continuing its “strategic review process,” including a ... Read More

FirstBank Parent Files IPO, Plots Mortgage Growth

The parent company of FirstBank this month filed for an initial public offering of common stock, hoping to raise upwards of $115.0 million. Among its goals: to increase originations and bolster its investment in mortgage servicing rights. Headquartered in Tennessee, the community bank has significantly increased its mortgage activity in recent years, according to IPO documents filed with the Securities and Exchange Commission by FB Financial. The bank funded $2.76 billion in ... Read More

After the M&A Deal Closes, Keep the LOs Happy

Price is paramount to buyers purchasing a mortgage company, but equally important is bringing over the salesforce – namely loan officers – and making sure they stay happy under the new owners. That’s one of many insights contained in a new “In-Focus” report from The Stratmor Group, a consulting firm that plies its trade in the M&A circuit as well as other sectors of the industry. “While the numbers and related analysis are fundamental to the negotiating process, there is an ... Read More

Banks Seek Exemption from Recordkeeping Rule

A proposed rule published by the Federal Deposit Insurance Corp. earlier in the year regarding recordkeeping requirements would “unnecessarily increase costs for banks and servicers,” according to George Green, an associate vice president at the Mortgage Bankers Association. The proposed rule would apply to depositories with more than two million deposit accounts. Under the regulation, banks would generally be required to maintain complete and ... Read More

‘Fix n Flip’ Lender Raises Capital

Fix-and-flip lender California Capital Real Estate Advisors, Pasadena, late last month raised $10 million in capital through its CALCAP Income Fund 1. The company hopes to add at least $15 million more by the time September ends. Its eventual goal: to raise $100 million. Started by industry veteran Mark Mozilo and others in the wake of the financial crisis, the company’s forte is lending money to contractors who purchase homes and fix them up for a quick resale. In 2015 ... Read More

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