Finance

Lenders are brushing up on ways to minimize losses associated with the increasing costs to fund mortgage pipelines.

A new label and disclosures for certain mortgage securities may create more of an impetus for lenders to extend credit to underserved populations.

The real estate investment trust arm of two affiliate mortgage-related companies could reduce other debt and finance purchases of loans, servicing or securities.

The impact on things like servicing rights would raise costs even for lenders that aren't banks, according to Mortgage Bankers Association President and CEO Bob Broeksmit. Others disagree.

The mortgages are part of a program that received congressional scrutiny earlier this year.

But at the same time, the publicly traded company is selling off another type of housing finance asset to some large depository institutions.

Spreads with the 10-year Treasury are unlikely to narrow from outsized levels even as inflation cools and Fed tightening ends, said Odeta Kushi, an FA economist.

The Federal Housing Finance Agency also is offering more opportunities for public dialogue as stakeholders debate how fast the process should move forward.

Lenders will be adjusting to new mandates regarding mortgage applicants that don't have payments for education debt on their credit reports.

Michael DeVito has been able to grow the government-sponsored enterprise's net worth, but at the current pace and without a rule change, it could take 10 years to build enough capital to exit conservatorship.

The Federal Reserve has now offloaded about $1 trillion of its bond holdings since it began working down its bloated balance sheet last year, with no sign of the kinds of strains in financial markets that spooked policymakers the last time they oversaw such a program.

New mortgage bonds now offer yields that are about 1.66 percentage point higher than U.S. Treasuries, according to data compiled by Bloomberg. That's the most relative to corporate bonds in 17 years. 

The recently slimmed-down company named Chief Operating Officer Danya Sawyer as the interim successor to the former Wall Street executive.

The government-sponsored enterprises have consistently earmarked some distressed loans for community, nonprofit and minority investors. Certain Democrats want more.

The lender has shed nearly 80% of its expenses in the past year, in part through massive downsizing.

The company, which is a large investor in mortgage servicing rights, hired a former MetLife executive it previously worked with to oversee the business line.

The company plans for the exchange to soon have its first loans committed for co-issue transactions, increasing options in an evolving segment of the market.

It notched relatively higher returns after betting on asset-backed securities with a rotation out of mortgage debt and collateralized loan obligations.

Demand-driven inflation will continue to be a problem in the U.S. economy until we somehow work through trillions of excess liquidity provided by the Federal Open Market Committee, writes the Chairman of Whalen Global Advisors.

The post-close review timeline gets shorter and new pre-funding checks become required on Sept. 1.