Mortgages with low credit scores and higher loan-to-value ratios accounted for a larger share of Fannie/Freddie purchase business in the first quarter. But the industry is hardly in a race to the bottom despite slumping volume and tight margins.
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A group of 22 banks reported a combined $1.84 billion in mortgage banking income for the first three months of 2019, a solid improvement from the fourth quarter but down from the same period last year.
Many lenders still rely on the "natural hedge" that balances gains on the production side against losses on servicing, but timing is an issue. Retention may be the best hedge of all.
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Ditech is once again operating under Chapter 11 bankruptcy protection. But its problems, like a top subservicing client wanting out, are accelerating. Can the firm's advisors sell the shop before it's too late?
A new report from Moody's offers a glimpse at the financials of four private nonbanks: Freedom Mortgage, Provident Funding Associates, Quicken Loans and Stearns Holdings. Combined, core profit was down sharply at the four firms in 2018.
Blockchain technology is making inroads in the MBS and ABS sector, though there are still a number of questions that need to be addressed, according to rating services.