Secondary

The agreement would generate $250 million in proceeds, which the nonbank mortgage company plans to use to pay down and refinance existing debt, while also investing in its servicing and origination businesses.

But the company sees reasons to be optimistic about the second half of the year, CEO and Chairman Michael Nierenberg said during its fourth quarter earnings call

Meanwhile at Essent, more loans exited the inventory in January than in December.

The deal definitively ends a monthslong war of words between the data provider and stakeholders who attempted a hostile takeover.

Even as the company posted record numbers, it could have originated more loans if it had not stopped buying FHA and jumbo mortgages from brokers.

However, the share of new impairments increased, likely as a result of the high concentration of these loans given to self-employed borrowers.

January’s excess return came in at a level well above the trailing average for the month, thanks in large part to a helpful hand from the Federal Reserve.

Pretax operating margins came in much narrower than what is projected for the three stand-alone underwriters.

The company also reported a large fourth-quarter loss that reflected a significant increase in its loan-loss provision.

Issuance of securitizations backed by these loans is becoming more dependable, and Fannie will need more mortgages that finance newly-built energy-efficient homes to keep it going.