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Wed, Aug. 6, 5:56 PM| Comment!
Wed, Jul. 16, 7:40 AM
- An analysis of cash flow combined with continued regulatory issues has Wells Fargo cutting the nonbank mortgage servicers to Underweight from Market Weight, and Nationstar Mortgage (NYSE:NSM) and Walter Investment (NYSE:WAC) cut to Underperform from Market perform.
- The team, however, keeps its Buy ratings on Home Loan Servicing (NASDAQ:HLSS) and PennyMac Financial (NYSE:PFSI).
- NSM -1.5% premarket
Tue, Jul. 1, 10:39 AM
- Noting some nonbank servicers use short-term funding to buy MSRs which may only pay off after a lot of long-term work the Office of Inspector General says the practice can jeopardize not just the companies' operations, but also Fannie Mae (FNMA) and Freddie Mac (FMCC) which guarantee the loans.
- The report notes nonbank servicers held 17% of he MSR market at the end of 2013, up from 9% a year earlier, and the boosted share is testing their ability to handle the loans. No particular servicer is named in the report, but those in the industry include Ocwen (OCN -1.9%), Nationstar (NSM -2.6%), Walter Investment (WAC -0.8%), New Residential (NRZ +0.3%), Home Loan Serviing (HLSS +0.9%), and PennyMac Financial Services (PFSI +0.5%).
- The report cites one example in which the GSEs found a servicer didn't have sufficient infrastructure to manage its MSRs and also breached minimum capital requirements.
- NY's Ben Lawsky, of course, has put the kibbosh on transfers of servicing rights from the banks to the nonbank players until his concerns over servicing practices are satisfied.
Fri, Jun. 13, 7:31 AM
- "The company has taken advantage of a pull-back by large banks in correspondent lending and an increased willingness by smaller lenders to sell their production due to capital constraints," writes analyst Eric Beardsley, initiating PennyMac Financial (PFSI) with a Buy and $19 price target.
- "Relative to other non-bank mortgage servicers, the company is not reliant on bulk acquisitions of mortgage servicing rights to grow, which should limit downside risk, in our view."
Thu, May. 8, 12:30 PM
- Jefferies upgrades AmREIT (AMRE +1.5%) to Buy, and sets a $19 PT.
- First Financial Bankshares (FFIN +0.6%) is upgraded by Macquarie to Neutral.
- PennyMac Financial Services (PFSI +5.8%) is upgraded to Buy at Compass Point with $18.50 PT after Q1 results yesterday.
- Raymond James ups Main Street Capital (MAIN +0.3%) to Outperform with $34PT ahead of its quarterly earnings.
- CommonWealth REIT (CWH +1.2%) is downgraded to Sell by Stifel Nicolaus. Earlier: CommonWealth REIT beats by $0.01, beats on revenue
- UBS downgrades Deusteche Bank (DB +1.4%) to Neutral.
- Provident Financial Holdings (PROV -0.1%) is downgraded to Underperform by Raymond James.
- Evercore Partners downgrades Zion Bancorp (ZION +1.4%) to Equal Weight with $28 PT.
- Fidelity & Guaranty Life (FGL +0.3%) is cut to Neutral at Credit Suisse
Wed, May. 7, 5:49 PM| Comment!
Tue, Apr. 1, 8:27 AM
- Action continues to swirl around PennyMac Financial Services (PFSI), where Jefferies upgrades to a Buy with $20 price target on the team's expectation the company stands to benefit as mortgage reform pushes business away from the GSEs.
- Previously: PFSI dips sharply after a large holder sells out, Wells Fargo says buy the dip, and Leon Cooperman adds to his stake.
Mon, Mar. 31, 3:21 PM
Fri, Mar. 28, 6:35 AM| Comment!
Thu, Mar. 27, 8:48 AM| Comment!
Mon, Mar. 24, 4:15 PM| Comment!
Wed, Feb. 26, 9:39 AM
- "Purchase applications were little changed on an unadjusted basis last week, but this is the time of a year we would expect a significant pickup in purchase activity, and we are not yet seeing it," says the MBA's Mike Fratantoni, commenting on the latest mortgage application data.
- Overall applications slipped 8.5% for the week, led by an 11% drop in refinances.
- The seasonally adjusted purchase application index fell 4% from a year ago to the lowest level since 1995. Bad weather is a convenient excuse, but Diana Olick notes January home sales fell the most in the West where weather was not a factor.
- "We're going from an investor-led housing market to an end user-led housing market, and that's creating a lot of problems," says housing analyst Mark Hanson.
- A few names to keep an eye on include: Wells Fargo (WFC), PennyMac Financial Services (PFSI), Nationstar Mortgage (NSM).
Wed, Feb. 5, 5:13 PM| Comment!
Wed, Jan. 22, 12:18 PM
- "Non-QM [mortgage lending] is a huge opportunity, the largest we've seen in 30 years," says a hedge funder at the ABS conference, as reported by Housingwire's Paul Jackson.
- Credit risk has always been a "moving target," says a non-bank mortgage lender, but the CFPB's qualified mortgage rule "cement(s) those lending boundaries, giving investors much more clarity on what can be done "outside the box."
- "There is a huge universe of people who right now sit outside of QM and can afford this kind of lending."
- Private label lenders/securitizers maybe set to benefit include Redwood Trust (RWT) and PennyMac Financial Services (PFSI +0.2%).
Dec. 23, 2013, 2:22 PM
- Homebuilders and private mortgage insurers are partying thanks to incoming FHFA chief Mel Watts' weekend move to postpone an increase in fees which would have raised significantly raised mortgage costs for those with good, but not stellar credit and less than 20% to put down.
- "This is a victory for the housing finance industry," says FBR's Edward Mills. "We believe that this is the first of a series of decisions by incoming Director Watt to preserve/expand mortgage credit availability ... We view this announcement as positive for housing generally, but specifically for private mortgage insurers, originators, and homebuilders."
- Homebuilder ETFs: XHB +2%, ITB +2.8%.
- Homebuilder names: Toll Brothers (TOL +3.9%), Putle (PHM +5%), Lennar (LEN +3.2%), KB Home (KBH +6.9%), Hovnanian (HOV +4.8%), D.R. Horton (DHI +2.8%), Standard Pacific (SPF +4%).
- Mortgage insurers: Radian (RDN +4.1%), MGIC (MTG +1.1%), Genworth (GNW +1.6%), Old Republic (ORI +0.7%), NMI Holdings (NMIH +1.1%). Essent Group (ESNT -0.6%) is off a hair, but up 29% since its late-October IPO.
- Not showing much reaction today, but potentially set up to disappoint if the GSEs do not allow any private oxygen in mortgage finance are Redwood Trust (RWT -0.2%) and PennyMac Financial (PFSI +1.2%).
Dec. 16, 2013, 4:25 PM
- In good news for securitizers of private-label MBS like Redwood Trust (RWT +1.1%) and PennyMac Financial Services (PFSI +1.4%), the FHFA sets in motion a 4% reduction in conforming loan limits to a new ceiling of about $400K for most of the U.S., while higher-cost areas would see a new limit of $600K.
- The goal is to cut the presence of Fannie (FNMA -0.7%) and Freddie (FMCC -2.3%) in the mortgage market, a gap private firms would love to fill. Critics will say the cuts could harm the housing recovery. The period for public comment on the proposal ends on March 20. If it moves forward, changes could take place by October 1.
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PFSI vs. ETF Alternatives
PennyMac Financial Services Inc is a specialty financial services firm. The Company is engaged in the production and servicing of U.S. residential mortgage loans and the management of investments related to U.S. residential mortgage markets.
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