Capital markets

However, capacity issues, the suspension of the government-sponsored enterprise purchase caps and higher conforming limits all could affect activity, KBRA said.

The bulk package from an unnamed seller is associated with retail loans generally originated a little over a year ago and purchased by government-sponsored enterprises Fannie Mae and Freddie Mac.

Electronic signatures and remote online notarization can now be used for mortgages that previously were signed in person, subject to certain restrictions.

Amid its first post-IPO securitization of loans made outside a regulatory definition for standard products, the company has seen purchases accelerate, but it underperformed by some analysts’ estimates.

Nearly half of the company’s revenue comes from sources outside of the traditional home lending market, CEO Patricia Cook told analysts during the company’s earnings call.

However, it remains 30% tighter than pre-pandemic levels, according to the Mortgage Bankers Association.

Acting FHFA Director Sandra Thompson's decision to act immediately rather than taking the time to examine the impact likely harmed private-label securitizations in the short term, but issuance is still on course for a record year.

More aggressive pursuit of government-related agencies’ affordable housing mission is expanding product availability, but government intervention can be a double-edged sword.

The seasoning clock for securitization eligibility restarts when a modification takes place, the government agency said.

The company is repositioning its secondary market sales of loans and servicing and implementing cost-cutting measures as the market normalizes.

The partnership with Esusu, which the athlete’s venture capital firm invested in earlier this year, could help renters build credit histories, broadening their housing options, improving loan performance and incentivizing originations.

The Fed said it would reduce Treasury purchases by $10 billion and mortgage-backed securities by $5 billion, marking the beginning of the end of the program aimed at shielding the economy from Covid-19.

When added to other staffing and acquisitions additions since year-end 2019, the mortgage services provider has more than tripled the company’s headcount.

The mortgage giant’s net worth of $42 billion at the end of the quarter was more than double what it was a year earlier. CEO Hugh Frater said that financial strength puts the company on better footing to support affordable housing goals outlined by the Federal Housing Finance Agency.

The move by the agency, which is an arm of the Department of Housing and Urban Development, will help further efforts to give servicers more leeway to modify mortgage terms.

The combined refinance and purchase total was nearly double the average quarterly volume logged before the pandemic, the company said in its third-quarter earnings call.

Mortgage servicing rights can look more attractive to originators as they become increasingly interested in building their customer base, but some may want to sell due to thinner margins or regulatory uncertainty.

The company also locked a record $4.7 billion in jumbo loans and significantly increased its business purpose lending from a year ago as its revenue mix shifted toward its taxable subsidiary.

The increased complexity of loss mitigation in the wake of the pandemic has increasingly prompted a growing number of mid-sized players to outsource, so constraints on one player could affect others.

Maxwell, a startup that operates an online platform catering to mortgage loan officers and smaller lenders, raised $28.5 million in equity funding from investors led by the venture firm Fin VC and Wells Fargo Strategic Capital.