Two Harbors revealed that it sold several billions of dollars worth of agency MBS in the third quarter as the assets became less attractive with rising rates. The proceeds will be used to buy MSRs.
The program is intended to provide smaller mortgage lenders that lack direct access to the secondary mortgage market with another option for their home buying customers.
Over the years, HUD has seen a steady decline in its staffing level perhaps to its lowest level ever, in fact while at the same time being called upon to administer an increasing number of programs.
At an investor conference in New York this week, officials from Wells Fargo predicted that residential originations at the bank will fall 30 percent this quarter on a sequential basis.
A compare ratio north of 150 percent will land a lender on HUDs watch list. A ratio greater than 200 percent could result in disciplinary action and potential loss of FHA approval.