Despite the not-so-good news on applications, one warehouse lender suggested to IMFnews that larger lenders are suffering much more than smaller firms.
The price quotes can vary greatly depending on the size of the company being targeted, especially if there’s a servicing portfolio and platform that needs to be looked at.
Over the past few years Envoy Mortgage had a strong emphasis on purchase-money lending and in early 2013 branched out into third-party lending. Its original focus was on retail.
Marc Savitt, who runs The Mortgage Center in West Virginia, said he recently worked on a mortgage that had 4.5 points of LLPAs. “It was a cash-out refi,” he noted.
Here’s what the current state of mortgage banking boils down to: Can the industry survive on $1 trillion to $1.2 trillion in production a year through 2015?
“I don’t think it gets sold for the time being,” said one analyst speaking under the condition his name not be used. “It needs lots of restructuring yet.”
Since that story appeared, we’ve talked to a few mortgage company CEOs who have said – tongue in cheek – that just about every mortgage firm is for sale.
Inside Mortgage Finance's newsletters break the mortgage market down so you get the news and data you need most, whether it's total industry coverage or just the news related to securitization, regulation, profits or other specific topics.