JPMorgan Chase, FDIC put an end to First Republic's slow bleed
National Mortgage News
In-depth analysis, strategy and data spanning the entire residential mortgage industry. An Arizent brand.
National Mortgage News is in the midst of reporting about how First Republic Bank’s sale to JP Morgan may impact the mortgage industry. Follow for more updates.
The bank was closed by the California Department of Financial Protection and Innovation overnight and handed to the FDIC, which said in a news release that it selected a bid from JPMorgan for all of First Republic's deposits and "substantially all" of its $229.1 billion of assets. The bank's 84 offices in eight states are scheduled to reopen Monday as branches of JPMorgan Chase during normal business hours. As part of the purchase and assumption transaction, the FDIC and JPMorgan have entered into a loss-share agreement on certain single-family residential mortgages and commercial loans. The two will share in the losses and potential recoveries on former First Republic loans covered by agreement, the release said.
As the mortgage industry winds down from explosive origination volume seen in 2020 and 2021, consolidation activity has ramped up. Thus far, two groups of industry stakeholders are emerging: those that have enough capital and see the depressed market as an opportune time to grow market share and companies that can no longer stay afloat. As a result, merger and acquisition activity has been booming, according to consulting firm Stratmor Group. That activity is expected to grow even further, with the consultancy predicting 60 transactions in 2023, most of which are between nonbank lenders. Click the link for National Mortgage News’ list of transactions which have occurred so far.
Two Republican members of Congress have introduced bills aimed at canceling the Federal Housing Finance Agency's latest adjustments to government-sponsored enterprise mortgage fees. Rep. Andy Biggs, R.-Ariz. introduced H.R. 2928 and Rep. Stephanie Bice, R.-Okla, sponsored H.R. 2876, both of which seek to roll back the overhaul of the GSEs' loan-level price adjustments. More than 30 Republican co-sponsors backed Biggs' bill. Bice's bill has 14. The text of Bice's bill was not available at deadline but the information available for both indicate that they would simply cancel the most recent fee changes. Biggs and other Republican lawmakers have shown concern that the cross-subsidization involved in the new pricing leads to borrowers with lower credit scores getting breaks at the expense of those with better payment track records.
领英推荐
Redwood Trust expects its residential mortgage business operations to see long-term benefits resulting from ongoing troubles at regional banks once the current disruption settles. The company's first-quarter earnings improved from losses throughout much of last year, due in part to healthier mortgage banking activity. The trend should continue for the real estate investment trust, according to CEO Christopher Abate. "A reckoning is now underway amongst the regional banks, something we expect to reset the competitive landscape in mortgage finance in the coming quarters," he said in the company's call with analysts last week.
Members of the New York State Legislature introduced two bills looking to strengthen existing legal protections against deed theft. "Victims of deed theft are often older adults and people of color who are asset rich but cash poor," state Attorney General Letitia James said in a press release. "This legislation will provide real and necessary changes to our civil and criminal laws to stop the perpetrators of these crimes and provide the protections and remedies needed to keep people in their homes." In December, James brought charges against five people, including a mortgage loan officer, accusing them in a 30-count indictment where if convicted the top charge has a maximum jail time of 15 years.
The runoff of some of the deposits that New York Community Bancorp acquired last month when it scooped up a significant portion of Signature Bank may not be over yet, executives said Friday. The Hicksville, New York-based company says it still expects about 20% of the $33.5 billion of Signature deposits it took on last month will leave the balance sheet. At the same time, New York Community is trying to hang on to what remains and lure back some of the deposits that have already fled.
Sign up here to receive the National Mortgage News complete newsletter — delivered to your inbox daily.
Realtor Associate @ Next Trend Realty LLC | HAR REALTOR, IRS Tax Preparer
1 年Thanks for the updates on, The NMN.