Secondary

While bullish on the future, CEO Anthony Hsieh noted that the company is “doing the necessary work to ensure our operations appropriately reflect our expectations for the changing market."

In an open letter to Sandra L. Thompson, President Biden’s nominee for Director of the Federal Housing Finance Agency, two longtime advocates of the Federal Home Loan banks suggest a new path forward.

In addition to hinting at a March rate hike, the central bank this week announced an intention to have Treasury securities make up a greater share of its holdings, which has implications for securitized home loans.

New player Tomo is entering this niche while a trio of established players enhance their existing offerings for their third-party channels.

Multifamily and specialty finance loans, which were highlights during the fourth quarter, should increase further in 2022, company executives said.

Performing and re-performing loans are in the pool, as well as fixed, adjustable-rate and step-rate loans, and fully-amortizing balloon and interest-only mortgages.

The company will leverage its diversified consumer-finance model while optimizing a traditional mortgage business with thinner margins as the business cycle turns, CEO Patti Cook said.

Due to the rollback in stimulus and uncertainties related to other mortgage policy measures and rates, servicers are moving into uncharted waters, according to a Fannie Mae economist.

Collateral characteristics are slightly weaker than previous deals, due to a higher proportion of loans underwritten to alternative income documentation.

Office properties account for 60.8% of the pool, above the 41.2% average for 2020 deals, and above the 36.5% average for 2021.