Will investors be interested in buying shares in a special purpose acquisition company that houses a bank/warehouse lender and assets put together by fintech guru Mike Cagney? Maybe in “normal times,” but we’re not operating in normal times.
Fewer fix-and-flip home sales are occurring these days, a negative sign for this once white-hot sector. What's more, the profit per transaction dropped to $62,000 in the third quarter. Meanwhile, remember industry veteran Bill Dallas? He may be returning to the mortgage industry for one more rodeo.
Warehouse finance volumes are down noticeably this year as originations sag in the primary market. The only good news to speak of is that some originators might be approaching break-even. (Includes data chart.)