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The Institutional Risk Analyst


Housing Stocks Surge On Rate Cut Hype
As and when the home price correction finally arrives ~ 2028, many of the conventional loans written since 2020 are likely to be underwater vs the collateral. The GSEs will be looking for reasons to reject loans. After all, FHFA Director Bill Pulte is in the loan insurance business.
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2 days ago8 min read


Bayview Acquires Guild Mortgage
Truth is, it’s hard to see the leadership of either RITM or UWMC combining with another entity, but the cost pressures in the industry today are driving radical change.
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Jun 194 min read


Housing Finance Outlook | Q3 2025
We expect to see continued consolidation in the world of residential mortgage finance in coming months. The sad fact is that many less competitive businesses in mortgage finance have been waiting for the FOMC to ride to the rescue with lower interest rates. If rate cuts do not materialize in 2025, however, then many of these businesses may not survive.
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May 279 min read


FHFA Director Bill Pulte at the MBA Secondary Conference
“The boards of the GSEs don’t have a fiduciary duty to the Enterprises,” Pulte noted. “They have a fiduciary duty to the conservatorship.”
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May 214 min read


Housing Finance in the Age of Volatility: GHLD, UWMC, RKT, COOP, JPM
While GHLD provides a lot of good information about their business, the investor disclosure provided by UWMC is a bad joke, especially when you remember that UWMC is the largest nonbank lender in the US. The Q1 2025 press release is just 9 pages in length and lacks some of the most basic financial information available from UWMC’s peers.
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May 910 min read


Budget Reconciliation, Fiscal Credibility & GSE Release
The Trump budget package is priority number one on Capitol Hill, but odds of the big tax bill passing are falling every day. The White House still needs 25 votes in the House and May is upon us.
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Apr 247 min read


Trump to Fire Jay Powell? No. Bank Earnings? Nada. Bayview for Sale?
President Trump will not try to fire Chairman Powell. Why not? First, because Powell cannot be removed save for malfeasance. Second, because firing Powell would seriously piss off Senate Republicans, killing Trump's hopes for tax legislation this year.
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Apr 226 min read


Trade, Taxes & GSE Release
Who are the two most powerful people in the Trump White House?
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Apr 94 min read


Rocket + Redfin + Mr. Cooper = First in Class
COOP and RKT, plus RDFN, creates an integrated business of realty, lending, servicing and asset management that is impressive
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Apr 15 min read


Residential Mortgage Finance 2025
The majority of the actual cash profit generated from residential lending is found in the mortgage servicing rights (MSRs).
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Jan 2012 min read


Liquidity Preference: SVB Financial Group, WaMu & Reemerging GSEs
Selling the Treasury's control position in the GSEs while dragging the furious shareholders along behind is not an attractive opportunity
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Dec 12, 20247 min read


Kamikaze GSE Release? Oh Yeah...
Yes, that's right, we are going to downgrade $8 trillion in GSE MBS and hundreds of billions in corporate debt.
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Dec 10, 202415 min read


Update: Blend Labs Inc.
BLND is generating operating leverage via cost reductions, another way of saying that management is slowly winding up the business.
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Dec 5, 20244 min read


Fiat Currencies, GSEs & Presidents
Could President elect Donald Trump be facing a maxi market correction before inauguration day?
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Nov 13, 20246 min read


Housing Finance Outlook; PennyMac, Mr. Cooper & NYCB/Flagstar
NYCB and the unsold rent-stabilized assets left over from the failure of SBNY are two little surprises waiting for the next POTUS.
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Oct 28, 20249 min read


Will Rohit Chopra Kill Basel III? Shrinking NIM at JPM and WFC
In opposing Basel III, Chopra is doing the bidding of Senator Elizabeth Warren (D-MA) but big banks are very happy to have no rule at all.
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Oct 14, 20245 min read


Citigroup + (Cenlar - Black Knight) = ?
The Citi decision to exit mortgage servicing perhaps made sense in 2017, but today not so much.
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Oct 9, 20247 min read


GSE Release Under Trump? Post-Rate Cut Margin Calls??
Why should a private Fannie Mae be a 20% risk weight under Basel III, but PFSI or Mr. Cooper (COOP) are 100%?
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Sep 22, 20248 min read


Bank of Nova Scotia + KeyCorp = ??
If you were really, REALLY going to do mortgage warehouse lending in today's market, KEY would be the better platform, not BNS.
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Aug 13, 20246 min read


Yellen's FSOC: Housing Policy Dreams vs Mortgage Market Reality
Yellen's proposal for a backstop is merely a canard to help Treasury avoid another fiasco next time a Ginnie Mae issuer fails
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Jul 30, 20246 min read
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