Mortgages Too Hot to Handle for Wilbur Ross?

On Wednesday morning the news broke that renowned bottom fisher Wilbur Ross is selling his mortgage banking unit, Homeward Residential, for a cool $750 million. I would venture that Ross is making a nice profit on the sale. (Readers may recall that Homeward, formerly known as AHMSI, was created by cobbling together MSR packages from Option One and American Home.) But his decision to get out might be a signal that perhaps mortgage banking profits have peaked and can’t get any better than this. But one M&A advisor we spoke to on Wednesday cautioned that the Fat Lady is not ready to sing quite yet and that mortgage profits likely will be strong for several more quarters. So, is Ross getting out too early? Come talk to me in a year.