The Institutional Risk Analyst

The Citi decision to exit mortgage servicing perhaps made sense in 2017, but today not so much.

Why should a private Fannie Mae be a 20% risk weight under Basel III, but PFSI or Mr. Cooper (COOP) are 100%?

Yellen's proposal for a backstop is merely a canard to help Treasury avoid another fiasco next time a Ginnie Mae issuer fails

Of note, PFSI has been growing share in wholesale, a direct challenge to UWMC

The survivors in mortgage finance optimize operations around purchasing loans from brokers/ correspondents, and direct to consumer (DTC)

If the run-of-the-mill Republic First interest rate mark is 13.3% of assets that is not just wiping out one bank’s 8% capital but also FDIC

Industry leaders believe that the FHFA wants the GSEs to offer issuers "repurchase insurance" to the tune of 25bps per loan.

Q: What do Silicon Valley Bank, First Republic Bank, Signature Bank and New York Community Bank have in common? Auditor, KPMG.

The key term for risk managers and investors in 2024 remains unchanged from this year: Volatility.

Simply stated, with T-bills trading significantly above the yield on RRPs, there is no reason for MMFs to leave cash at the Fed

If we are marking balance sheet assets to actual market in the age of deflation, what of the heavily modeled world of servicing assets?

The last Treasury Secretary that tried to extend the maturities of US government debt was Jack Lew (2013-2017). Yellen missed an opportunity

The “winners” in the mortgage sector will be those larger players with equally large servicing books that can access bank funding

Both PFSI and COOP are navigating the current market well, but we have questions about where the former is headed.

Fact is, Dr. Brainard has primary culpability in the growing economic pain being felt around the country.

We suspect that the IMBs will be sellers of conventional assets to defend their Ginnie Mae MSRs. Banks may be buyers of conventional assets

Like COOP, volumes are down dramatically from 2021 but MSR values and cash flows from servicing are rising

Despite the outlook for the industry, COOP continues to be one of the better performing names in our mortgage surveillance group.

Fannie Mae and Freddie Mac will likely sit in conservatorship indefinitely unless and until Congress acts first.

Net, net, the dynamics in the market are actually forcing interest rates down