MBS trading has improved as investors and traders weigh the landscape. One positive: a benign inflation reading this week. But is this a head fake before worse news appears?
Another long-time player is exiting warehouse lending. The twist: There’s nothing wrong with Flagstar’s nonbank business. The problem is that the depository is owned by NYCB, which needed an investor-infusion earlier this year.
An increase in MSR values was the order of the day during the first quarter, but the markups were not significant. And some lenders had slight declines. The good news: Origination profit margins improved.