Secondary

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.

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.