One of the best kept secrets in the servicing sector is a bifurcated mortgage program initiated by Fannie Mae that has been gathering momentum over the past six months.
When rates spiked this week, margin calls to MBS investors increased. Lenders are nervous but next will will be the real test, mortgage executives told Inside Mortgage Finance.
At least two mid-sized nonbanks on track to fund up to $10 billion in mortgages this year are on the auction block and could get sold in the months ahead. That is, if their owners dont get too greedy. With interest rates continuing to head north and loan application volumes weakening, the dynamics in the mergers and acquisitions market may be shifting. Over the past two years, lenders have been posting the best profit margins ever, which in turn has caused them to increase their asking price, that is, should they entertain the thought of selling. In general, nonbank lenders that are...