The mortgage servicing rights market changed dramatically when the government-sponsored enterprises went into conservatorship and Basel bank capital rules tightened, so stakeholders are watching the review of both carefully. Those two historic changes created the “perfect storm” for MSRs that led to a concentration of large nondepository players, an advocate for mid-sized banks said at […]
How Basel, GSE changes may upend MSR dynamics Read More »
A pickup in originations, home price shifts, delinquencies and an intensifying focus on recapture are among the dynamics reshaping the mortgage servicing rights market, speakers at an industry event said Thursday. Current production forecasts project growth that extends through next year with housing values softening in some regions, said Mike Fratantoni, chief economist at the
How experts view the current state of MSR market Read More »
The Federal Home Loan Bank System has an economic benefit at least nearly twice the size of a Congressional Budget Office estimate of its implied-guarantee cost, new research shows. The system has at least a $13.2 billion benefit annually, 1.9 times what the CBO has estimated is its main $6.9 billion government subsidy, according to
FHLBank benefits at least 1.9 times guarantee costs: study Read More »
Enjoy complimentary access to top ideas and insights — selected by our editors.Want unlimited access to top ideas and insights? Subscribe Now Third quarter earnings are in for the residential mortgage industry and the results show both challenges and opportunities in a volatile interest rate market. The rally in the Treasury market has made selling
Mortgage firms split on MSR hedging strategies Read More »
A 50-year mortgage on a median-priced US home could reduce borrower’s monthly repayment, but also double the amount of interest the owner pays over the life of the loan, according to UBS Group AG analysts. The longer mortgage could lower the monthly payment by about $119, or increase an average consumer’s purchasing power by almost
A 50-year mortgage to double interest paid over tenor, UBS says Read More »
Fannie Mae and Freddie Mac, two influential mortgage buyers the United States holds in conservatorship, are looking into doing more with loans transferred between buyers and sellers, according to Federal Housing Finance Agency Director Bill Pulte. “At Fannie and Freddie, we are evaluating how to do assumable or portable mortgages in a safe and sound
Fannie, Freddie eyeing assumable or portable loans: Pulte Read More »
The range of fixed-rate mortgage terms and other outcomes possible through government-sponsored enterprise reform got a lot wider over the weekend. President Trump and Bill Pulte, the head of the GSEs’ oversight agency, used the social media channels they often employ to float ideas in order to advocate for a 50-year mortgage, a concept at
Trump, Pulte float 50-year mortgage use in U.S. Read More »
A new examination of which metropolitan statistical areas benefit the most and the least from government-sponsored enterprises shows that the largest concentrations of GSE-backed mortgages are typically found in regions within Northern states and the smallest in the lower half country, including the Southwest. Boulder, Colorado, commands the highest share at 67%, according to the
Where Fannie and Freddie loans flow most and least Read More »
Reverse mortgage company Finance of America’s continuing operations took a net loss on a one-time adjustment in the third quarter, but it was profitable on that basis for the year-to-date, unaudited interim results show. The company reported a $29 million in net loss from continuing operations during the third quarter due to home price model
Finance of America reports 3Q loss, nine-month profit Read More »
The Mortgage Bankers Association largely supports the Federal Housing Finance Agency reduction of certain low-income single-family finance goals for the government-sponsored enterprises. But the one goal that was not changed in the proposal from the agency called U.S. Housing Finance by its director, the single-family low-income refinance goal, might not be attainable due to market
Fannie Mae, Freddie Mac housing goals need revisions: MBA Read More »