Analysts have largely forecast political inaction on an additional public offering for Fannie Mae and Freddie Mac until after the midterms, and one recently said odds are the wait could be longer. Processing Content Mizuho initiated coverage of both government-sponsored enterprises with a $10 price target for Fannie and $9 for Freddie. It forecasts two […]
Fannie, Freddie investors risk ‘zero earnings’ through ’33 Read More »
More mortgage firms are suing their counterparties over buyback demands. Processing Content In the past six months, several lenders and servicers have sued origination partners over repurchases, for funds experts say they may never recoup. Although the latest federal complaints are small in number, they’re ticking up again after a small wave of the complaints
Lenders are taking more repurchase demands to court Read More »
Invesco Mortgage Capital recorded a loss under generally accepted accounting principles during the first quarter, when it reported that Iran War volatility weakened agency residential mortgage-backed securities performance. Processing Content The real-estate investment trust reported a net loss attributable to common shareholders of $23.1 million, underperforming consensus estimates for a positive $1.26 million earlier in
Invesco REIT takes loss as Iran volatility hits agency MBS Read More »
Castlelake is forming a joint venture with Redwood Trust to purchase up to $8 billion of prime jumbo mortgage loans. Processing Content The partnership was designed to support the growth of Redwood’s Sequoia platform and give Castlelake, an investment firm specializing in asset-based private credit, programmatic purchasing power for the fully documented loans. Sequoia will
Castlelake, Redwood form $8B jumbo mortgage venture Read More »
Bank groups said that although the Federal Reserve’s eased capital plans are a major improvement over previous versions, the recent proposals still need changes to help avoid risk assessments they say may hinder banks’ ability to boost lending. Processing Content Heads of the Washington-based Bank Policy Institute and the Mortgage Bankers Association, among others, testified
Bank groups eye changes to Fed’s relaxed capital plans Read More »
Government mortgage-backed securities guarantor Ginnie Mae announced that it’s changing how it will be tracking delinquencies in monthly issuer reporting to account for impacts from a rule update. Processing Content To address the uptick in a large number of older loans entering trial payment plans as a result of the Federal Housing Administration’s adjustment to
Ginnie Mae pauses delinquency rules amid FHA waterfall shift Read More »
President Trump’s executive order on mortgage credit could open up new funding resources and secondary market options for some Federal Home Loan Bank members, according to a new letter. Processing Content The letter from Ryan Donovan, president and CEO of the Council of Federal Home Loan Banks, suggests the order could be a springboard for
FHLB council maps out mortgage credit expansion plan Read More »
The idea of potentially unwinding all or part of the uniform mortgage-backed securities process has resurfaced in an analysis of government-sponsored enterprise ownership changes. Processing Content The report by capital markets and policy experts who are part of the Treasury Market Practices Group looks more broadly on what potential ownership changes contemplated at the GSEs could portend,
UMBS a key risk in any GSE ownership change: report Read More »
Better Home & Finance announced Monday that it’s strengthening its finances through unexpectedly high originations, cost cuts, the sale of a United Kingdom bank and a stock offering. Processing Content The company reported that it is categorizing Birmingham Bank as held-for-sale and indicated it was actively working to shed it. Better also noted it has
Better Home & Finance selling UK bank to shore up capital Read More »
The latest Basel III proposal could encourage banks to hold more mortgages, but its impact on financing they provide to nonbanks selling home loans is “murkier,” according to a new report. Processing Content Pennymac’s early analysis of the proposed bank-capital rules’ impact on warehouse lending indicates that they currently preserve part of an earlier draft
Basel draft leaves nonbank warehouse financing in limbo Read More »