Posted To: Pipeline Press

While in captivity it is important to have discipline . Independent mortgage banks exercised discipline and had a great 4 th quarter, profit-wise , but that was so… “then.” (Costs were $7,500 per loan.) Looking at the present, many are beginning to ask an ugly question: “Does the worldwide economic harm, spiraling out of control, outweigh the potential casualties of the coronavirus?” Fortunately the Federal Reserve and Agencies are providing support, but given that non-QM and jumbo loan production is reeling, and the servicing market, especially for Ginnie Mae loans, was dealt a blow yesterday, can government-backed FHA/VA lending be far behind ? How much pain can small or mid-sized independent mortgage bankers absorb, given EPOs, margin calls, renegotiations…(read more)

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Source: Mortgage News Daily