The answer to that question is “probably not.” As I’ve told many over the past year the entire mortgage industry is up for grabs. Fannie Mae and Freddie Mac? Who knows what their future holds. Jumbo securitization? Redwood is the only real player though this past week I heard about a new nonbank that aims to be a buyer soon. (We shall see.) As for the hedge funds, they’ve been sniffing around the lending/servicing market for two years without any major splashes in the pond. (Then again, I guess it’s all a matter of what you consider a hedge fund.) Remember all that talk about a mysterious fund with $1 billion to spend on mortgage banking firms? We’re still waiting, like Godot. Maybe because several hedge funds lost their shirts playing in the nonperforming loan market…
Oh, by the way, we’re told the market for smaller NPL transactions is starting to heat up…
So, where would an investor put his money today? Thanks to a lousy jobs number on Friday rates are probably headed south which means refis could last several more quarters. One loan broker I know told me that he’s seeing new homebuyers that he gave loans to last year refinancing already. (For complete details read the Monday paper edition of National Mortgage News. Don’t subscribe? Call: (800)221-1809. A sub gets you free access to the premium content on our website.) In other words: opportunities in mortgage banking still look decent. But what about stocks? The lousy jobs report means investors will stay in bonds. Money market accounts? Don’t make me laugh. Real estate certainly looks interesting…
By the way, Bill Gross this past week predicted that serious case of inflation is around the corner. Bill was very wrong about the bond market last year. Has the master lost his touch?..
Residential funding volumes remain strong – and 2Q was almost as good as 1Q, according to figures that will be released Monday by NMN and the
I know of an investment banker who has completed three mortgage deals this year and is working on two more…
We’re still waiting on the Federal Housing Finance Agency to give mortgage bankers some type of guidance on GSE buybacks. The two continue to stick their thumbs in the eyes of mortgage bankers everywhere. Made a loan five years ago that finally went bad? Buy it back, please…
As you know, Guaranteed Rate out of Chicago recently struck a strategic alliance with Manhattan Mortgage, one of the largest brokerage firms in the NYC area. (I won’t make any cracks here about deep dish pizza versus thin crust from Brooklyn.) One rookie trade publication mistakenly called it a sale. It’s not a sale. But we’re told there’s some interesting warehouse arrangements…
Speaking of warehouse, the ultra secret ‘cone of silence’ firm known as NattyMac
By the way, if you have a loan program you’d like to tell brokers and correspondent about try the Grapevine website at:
Crazy rumor of the month: a certain notorious ex-mortgage banker is now buying properties in the Los Angeles area, fixing them up and flipping them.
WASHINGTON NEWS: Fannie Mae and Freddie Mae are raising their guarantee fees—again—and some seller/servicers are wondering if it will make a Federal Housing Administration/Ginnie Mae execution more attractive. For details see Brian Collins’ story on the NMN website in our weekly.
MORTGAGE PEOPLE: Redwood Trust named Christopher Abate its permanent chief financial officer. Vericrest appointed John Sayre senior vice president of business development.
THIS COLUMN IS FOR SALE: ‘What We’re Hearing’ is the most widely read column in the mortgage industry. For advertising information send a note to:
FOR THE DATA RECORD: Two nonbanks were the fastest growing loan servicers in the second quarter. For a ranking of the top 100 and delinquencies per company, see:
KEY INDUSTRY MORTGAGE SHOWS: On September 13 and 14 SourceMedia/National Mortgage News will hold its annual ‘Mortgage Regulatory Reform’ conference in Arlington, Va. Rep. Garrett is slated to give one of the keynotes.
I'm
FINAL WORD: Lament of a Republican: Boy, I miss Ronald Reagan. Lament of a Democrat: Boy, I miss Bill Clinton.
