As the MBA’s Secondary Conference in New York wraps up, and jokes are made about who actually paid for Fannie’s reception (informally titled “The Repurchase Reception,” many pointed to Fannie’s $3.8 billion income in the first quarter versus the losses seen by public and private lenders), the informal discussion topics reflect questions and trends around our industry. How are lenders handling the 67 percent expected decline in units since 2021? One way is closing: Texas’ Colonial announced its shuttering. The historic spread of mortgage rates to Treasury rates of similar maturities runs 1.70-1.80 percent, but it is now about 3.00 percent. Without the Fed and depository banks being buyers, will insurance companies, pension funds, and money managers soak up the MBS being sold? Or will there be supply uncertainty, even with industry production volume less than half of what it was a few years ago? And even if mortgage rates did drop, there is a continued lack of inventory available of houses available for sale and multiple bids and many price points as pre-quals stack up on every originator’s desk. (Today’s podcast can be found here and this week’s is sponsored by Black Knight. From point-of-sale through post-closing, the company’s trusted loan origination system, Empower, as well as its integrated, end-to-end origination solutions deliver unmatched capabilities, functionality, and support to increase processing efficiencies and lower operational costs for lenders, as well as improve the homebuying experience for borrowers. Listen to an interview with Black Knight’s Frank Poiesz on AI and regulators: What do lenders need to know about the April 25 Joint Statement on AI from CFPB, DOJ, FTC and EEOC?)
Source: Mortgage News Daily