The effectiveness of the borrowing facility now available to address the mortgage-backed securities risk that contributed to Silicon Valley Bank’s failure remains to be seen, as it has been tapped for at least $12 billion but institutions are leaning more heavily on other funding sources. But experts are hopeful about its usage. “I think that … [Read more…]
It hasnât been a good few weeks for banks whose names begin with âSiâ (Silvergate, Silicon Valley, and Signature, with Silicon Valley Bank declaring Chapter 11 bankruptcy this morning; todayâs Rundown discusses how the bank crisis may impact lenders). Ah, those clever secondary marketing folks. Cornerstoneâs Henry S. frets, âI canât believe itâs bank collapse season already. I just finished taking down my train derailment decorations.â Certainly, time flies by, and I hope youâre wearing some green today. Originally a religious holiday to honor St. Patrick, who introduced Christianity to Ireland in the 5th century, St. Patrickâs Day has evolved into a celebration of all things Irish, with the first parade on March 17, 1762, in New York City, featuring Irish soldiers who served in the English military. It certainly is more fun to think about celebrating the Irish than the constant stream of headlines as people race to conjecture about the health of world banking, and people crying âshoulda woulda coulda.â The markets seem to be performing a stress test on the Fed. The Federal Reserveâs (Fedâs) tightening seems to be finally having an effect, and an early victim has been smaller banks that did a poor job of managing interest rate and deposit concentration risk. (Todayâs podcast can be found here and this week is sponsored by Richey May, a recognized leader in providing specialized advisory, audit, tax, technology, and other services in the mortgage industry and in banking.)
A subservicer focused on government-related loans has started a new unit called Velocity that will aim to more efficiently manage mortgages using analytics. Velocity Servicing’s formal launch marks the outcome of LoanCare’s 2021 hire of former Goldman Sachs Vice President Matt Stadler, who the company brought in to build out an independently run special-servicing division. … [Read more…]
The CHLA report rebuts the myth that âIMBs are unregulated” by listing the raft of consumer regulations that apply to IMBs.
Headwinds in mortgage remain strong. Home Point CEO Willie Newman said Home Point owners would consider a dialogue about a sale.
“Perry will help refine Sagent’s cloud-native, open-API servicing and default platforms, ensure they’re relevant for our customers’ multivariate and complex use cases, and help drive adoption of our platforms with major bank and nonbank servicers,” said Sagent CEO Dan Sogorka. “Perry will also lead Sagent’s relationships with Fannie Mae, Freddie Mac, Ginnie Mae, and work … [Read more…]
Issuance of agency MBS is projected to contract significantly over the next two years in the face of a housing-market contraction, but the actual supply of MBS available for purchase in the market is expected to swell to record levels over that period.
With many borrowers still struggling, industry leaders are working on new solutions to the loss mitigation toolkit, including successors for the Covid-19 partial claim options.
Ginnie Mae announced changes to the minimum size for loan pools backing reverse mortgage securitizations, as it attempts to reduce liquidity risks facing lenders. The government corporation, which backs securitizations of loans insured or guaranteed by the Federal Housing Administration and other public entities, reduced the required minimum size of securities pools by 75% from … [Read more…]