After a planned merger between Amherst Residential and Front Yard Residential fell through, the head of Altisource Portfolio Solutions expressed his displeasure with Front Yard’s board.
Rep and warrant insurance, which covers corporate functions and not loan-level issues, has increasingly been used in mergers and acquisitions outside of the mortgage industry.
Freedom Mortgage’s planned acquisition of RoundPoint Mortgage Servicing is the latest example of delays in merger and acquisition deals. Factors delaying transactions include approvals from Ginnie and state regulators.
When it comes to mortgage-related M&A, 2019 was a bust, right? Well, not exactly. As for 2020, company sales will hinge on rates and loan production. Will weaker players be forced to exit?
Some lenders that were looking to throw in the towel after a rough first quarter experienced strong originations and returned to profitability as interest rates fell, putting the brakes on M&A activity.
The decline in interest rates earlier this year increased originations and income for lenders and delayed some M&A activity. The lower rates also provided lenders with time to prepare for the future.
Falling interest rates are sometimes a bad thing — case in point is Mr. Cooper and negative MSR marks. Also, it’s been somewhat quiet on the M&A front but perhaps a change is in the wind.
Is the long-awaited boom in mortgage mergers and acquisitions finally here? The sale of RoundPoint to Freedom Mortgage is sparking hope, but a villain has appeared: falling interest rates.
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