Finance

The company earned $453.3 million, inclusive of a $172 million increase in the fair value of its mortgage servicing rights, but future originations and revenue are expected to decline while it plans to continue challenging market rivals on pricing.

While the company improved on the prior quarter’s results, efficiency measures including layoffs failed to make up for less favorable secondary market conditions.

The Federal Housing Finance Agency is shoring up the government-sponsored enterprises’ finances as it returns to considering a mission-centric conservatorship exit, and its related policies have implications for lenders.

New insurance written during the first quarter slipped by 20% from the prior three months and by 30% year-over-year, yet five companies had higher income than in the fourth quarter and all six earned more money than in the first quarter 2021.

But company officials warned slimmer margins and a slowing market would lead to staff reductions.

The servicing segment's pretax income was almost 80% higher than the fourth quarter, offsetting a more than 90% decline for the production business.

Home sales usually pick up in the spring, but Zillow's outlook indicates that higher mortgage rates and low inventory of for-sale homes will finally slow activity.

The market is discounting the acquisition target’s stock price, largely over antitrust considerations, but execs dismissed the concern, and analysts said ways around it exist.

The move supports strong gains coming in from this side of the business, which helped the company return to profitability in the third quarter.

Peter Thiel’s Valar Ventures Management is leading a $185 million funding round for Canada’s Neo Financial Technologies, propelling it to a valuation of more than $1 billion as it plans expansion into mortgages.

The government-sponsored enterprise on Tuesday priced its fifth Connecticut Avenue Securities transaction this year, making further progress in supporting the market it left during the Trump era.

However, originators selling loans to Fannie Mae and Freddie Mac will have almost 10 months before the Supplemental Consumer Information is required.

While first-quarter profits were up considerably, CEO Michael Nierenberg said the company will offer more products to counter market conditions that are “only going to get worse.”

The transaction is expected to keep revenues flat at the company at a time when mortgage origination volume is shrinking.

Fair value increases on existing business and an accounting change made for troubled debt restructurings likely explain why its results contrasted those of competitor Freddie Mac.

Together, the deals OBX programs will issue about $850.5 million in prime jumbo and non-prime RMBS paper, and are expected to close on May 10.

While the government-sponsored enterprise’s single-family mortgages are still not performing as well as they did before the pandemic, the most recent vintages are getting there.

While the lender-servicer reported robust Q1 earnings, it is anticipating lower future revenue due to the tight originations environment.

Almost the entire deal will issue notes through a senior-subordinate capital structure repaying principal sequentially, instead of on a modified sequence.

Improved loan performance, a credit reserve release, higher g-fees and reduced portfolio runoff helped to offset declining single-family loan purchases.