Economy

The cohort is outperforming the broader market — up more than 50% year-to-date versus the S&P 500's 18% gain. 

Denver-based Proprietary Capital, who offers a platform for institutional investors seeking returns from mortgage-related assets, agreed to purchase the New Jersey-based lender as it seeks to increase the number of opportunities it offers.

Their links to the Treasury have been considered a source of strength and still are, but less so, according to one rating agency. Others disagree.

But a Zillow economist argues that there's plenty of evidence suggesting strong GDP and job growth had more to do with the increase than what Fitch did.

The move was "not being driven by fundamental credit, capital or liquidity deterioration at the firms," the firm said.

But the government-sponsored enterprise is still concerned about the fiscal health of its lender counterparties as volumes are down considerably from last year.

The sector is well-positioned for further volume growth into next year, analysts led by Anthony Pettinari said in a note to clients Monday.

The association thinks this could simplify and manage the costs of two new pending credit requirements by allowing companies to add the one that's been through a price hike second.

There's divergence of opinions between one more rate hike this cycle and no further actions.

"I do believe you'll begin to see some improvement, or increases, in new housing as we head into the back half of the year," Chief Financial Officer Jim Peters said in an interview. "We're hearing optimistic stuff from the builders we deal with."