Analysts at Keefe, Bruyette & Woods are forecasting that originations at traditional mortgage banking firms declined in the third quarter while large publicly traded specialty servicers will show strong origination volumes due to HARP refinancings.
“The growth for the servicers is driven primarily by the recapture of refinances from their acquired servicing portfolios,” the KBW analysts say in a 3Q Mortgage Banks & Servicers Preview.
The analysts estimate that Nationstar Mortgage Holdings originated $9.6 billion in the third quarter, up from $7.1 billion in the prior quarter. The $9.6 billion origination estimate includes “$7.6 billion from the recaptured refinance activity,” the Oct. 14 KBW report says.
The analysts are also forecasting that
“The strong growth reflects the fact that WAC’s origination platform is still ramping up. Additionally, we expect it to benefit from HARP and the company is likely to generate a recapture rate of nearly 50%,” the KBW report said. (Walter Management Investment’s stock symbol is WAC.)
