The Institutional Risk Analyst

The market tantrum which began on Friday was largely over by the market close on the following Tuesday.

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

We think Whitney’s comments about a surge in new lending from Freddie Mac buying home equity loans are poorly considered

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

BK and Vanguard are above the 4.9% legal limit on ownership of voting shares of a bank. This fact gives the FDIC et al the power...

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

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

GS is a securities dealer first and foremost and has no comparative advantage as a bank.

In this issue of The Institutional Risk Analyst, we speak to Mike Patterson, COO of Freedom Mortgage.

Many in the Buy Side chorus are looking forward to lower interest rates, but we are concerned that next year could really be about solvency

Is 2023 the year of the Return of the Distressed Loan Trade?

The big news this week starts with the poor showing by Rocket Companies (RKT), reporting a loss for Q3 2022 and a big decline in volumes.

We agree with the assessment by Leon Cooperman of COOP management that this firm is one of the best positioned IMBs in the industry...

We see an at least equal chance that margins will get squeezed for agency and MSR investors before they expand via higher interest rates

As a result of the adoption of "artificial intelligence," the 21st Century investor is mostly a victim in waiting.

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

Somehow the folks at UWMC did not take notice of the fact that secondary stock offerings for all issuers have basically disappeared

To paraphrase our friend and fellow mortgage maven Rob Chrisman, ponder a 2022 lending market that’s 75% purchases and just 4.79 million uni

We expect to see a lot more M&A activity over the next 12 – 18 months, as that’s the only way for some players to grow share.