In case you missed the story on the National Mortgage News website, here's a headline for you: Some firms have the ability to make $10,000 per loan on HARP 2.0 loans. A nice chunk of that profit estimate is tied to secondary market pricing. In short, Wall Street investors believe that HARP 2.0 loans have a very low likelihood of prepaying. Why? Answer: because the borrower is underwater or nearly so, but chances are he or she will keep paying, hence the secondary market premium. But another hitch is underwriting. We're told that some megabanks cranking out HARP loans are basically rubberstamping them – which means they're saving a ton of money on underwriting costs. As the old saying goes: make hay while the sun shines.
-
The study found nonbank lenders charging the highest interest rates and most points, and fintech pricing more in-line with depositories.
5h ago -
The real estate investment trust reported a GAAP loss and thin earnings available for distribution as a result of market shifts that also affected some peers.
7h ago -
The Trump victory is considered a positive for changing the status of Fannie Mae and Freddie Mac, but what would that do to interest rates?
9h ago -
Better touted the company's efficient operations, including an artificial intelligence voice assistant handling all of its inbound customer calls.
9h ago -
Applications broke a seven-week losing streak, but uneven rates muted any significant gains.
November 13 -
A steep mortgage servicing rights valuation change hurt earnings which included greater adjusted net income and total origination volume.
November 12