Nationstar Mortgage Holdings Inc

Latest Nationstar Mortgage Holdings Inc News and Updates

  • uploads///Nonfarm Payrolls
    Macroeconomic Analysis

    Jobs Report Postponed until Friday, May 8

    The jobs report should have gone out last Friday. But the BLS decided to postpone it until this Friday, May 8. Unless the report is unusually good, the bond market will probably take it in stride.

    By Brent Nyitray, CFA, MBA
  • uploads///Twos Tens
    Financials

    Strong economic data is causing the yield curve to steepen

    The shape of the yield curve matters almost as much as the absolute level of interest rates to financial companies As a general rule, financial companies (banks, REITs) borrow short and lend long. What this means is that they lever their balance sheet by borrowing at short-term interest rates and generally invest in longer-maturity assets, […]

    By Brent Nyitray, CFA, MBA
  • uploads///Radar Logic Futures Curve
    Financials

    Radar Logic futures curve predicts flat real estate prices until September 2014

    Radar Logic futures can be used to forecast real estate prices Most people are unaware that there is a futures market for U.S. real estate prices.  The Radar Logic futures contract launched about a year ago on the CBOE Futures Exchange. While they are not especially liquid, they do provide an insight into what the market […]

    By Brent Nyitray, CFA, MBA
  • uploads///MSR
    Financials

    Mortgage servicing rights increase in value as interest rates rise

    Mortgage servicing rights are one of the few financial assets that increase in value as rates rise Most mortgage REITs are exposed to changes in interest rates, and are usually long-duration, which means that the value of their portfolio decreases in value as interest rates rise. Good examples of these types of REITs would be […]

    By Brent Nyitray, CFA, MBA
  • uploads///MBA Mortgage Apps
    Financials

    Mortgage applications rebound after a short holiday week

    Mortgage applications fall off a cliff on a short week The MBA Applications index rose 11% after falling 13% the week before, which was a holiday-shortened week. Refinances drove the increase, with an 18% jump in the index. Purchase activity also rose, although only slightly. The summer selling season is winding down, and we’re entering […]

    By Brent Nyitray, CFA, MBA
  • uploads/// year intraday
    Financials

    Bonds and REITs collapse on FOMC statement

    The Federal Open Market Committee determines interest rate policy The June Federal Open Market Committee (FOMC) meeting was recently completed and the results of that meeting were released at 2:00 pm EST. The FOMC statement gives color on how the Fed views the economy, how they are thinking about moving forward, and some guidance regarding […]

    By Brent Nyitray, CFA, MBA
  • uploads///Employment Cost Index
    Macroeconomic Analysis

    Employment Costs Rise with Healthcare Inflation

    Employment costs rose 0.6% in the quarter ending March 31, 2016. Over the past 12 months, compensation costs for civilian workers have risen 1.9%.

    By Brent Nyitray, CFA, MBA
  • uploads///LPS originations
    Financials

    Why steeply falling originations mean bad news for non-agency REITs

    Mortgage originators have had a difficult time over the past year, as rates have begun rising. The increase in interest rates pretty much stopped the refinance boom in its tracks.

    By Brent Nyitray, CFA, MBA
  • uploads///OCN
    Fund Managers

    Baupost Group Lowered Its Stake in Ocwen Financial

    The Baupost Group lowered its position in Ocwen Financial (OCN) during 4Q14. The position accounted for 1.77% of the total portfolio in 4Q14.

    By Samantha Nielson
  • uploads///MSR
    Financials

    Why mortgage servicing rights imply risks for servicers

    Risks of being a servicer Generally, servicing seems like an easy job. Collect the payment, give the government its take, pass the (smaller) payment to the bondholders, and keep the rest. What could go wrong? There’s just one catch. What happens if you miss your mortgage payment? The U.S. government guarantees Ginnie Mae securities. When […]

    By Brent Nyitray, CFA, MBA
  • uploads/// year bond yield LT
    Financials

    Recommendation: how to play increasing interest rates for Mortgage REITs

    Interest Rates are going up. Now what? It is hard to be a mortgage REIT investor right now. The secular bond bull market that began in 1981 – 1982 recession has ended. The wind at the back of REIT investors, quantitative easing, which has put a bid under most of the stuff that mortgage REITs […]

    By Brent Nyitray, CFA, MBA
  • uploads///Mortgage Rates
    Macroeconomic Analysis

    Mortgage Rates Rose as Bond Yields Increased

    TheFed hoped that lowering mortgage rates would also support home prices.

    By Brent Nyitray, CFA, MBA
  • uploads///Mortgage Rates
    Macroeconomic Analysis

    Mortgage Rates Fall as Bonds Rally, Impact Mortgage REITs

    Mortgage rates largely ignored the moves in bond markets. In the week ended January 8, they fell by ten basis points while the ten-year bond yield fell to 2.1%.

    By Brent Nyitray, CFA, MBA
  • uploads///MBA Refinance Index
    Financials

    Are lower rates enough to trigger another refinance wave?

    The increase in rates has basically put prepayment worries on the back burner for REITs. The lack of a reaction in the refinance index on the back of a drop in rates could mean we’re finally seeing prepayment burnout. This would be good news for REITs.

    By Brent Nyitray, CFA, MBA
  • uploads///MBA Mortgage Apps
    Financials

    Bond Market Rally Lifts Originator Business

    Since the bubble burst, mortgage origination has been almost exclusively government-driven. The US government bears 50% of the credit risk of the entire US mortgage market.

    By Brent Nyitray, CFA, MBA
  • uploads///MBA Refinance Index
    Financials

    An Old Headache Returns: Increased Prepayment Speeds Up

    The Mortgage Bankers Association (or MBA) Refinance Index rose 66% from 1,349 to 2,245 as rates finally fell enough to allow refinances.

    By Brent Nyitray, CFA, MBA
  • uploads///Fed Assets
    Company & Industry Overviews

    Why the Fed Continues to Reinvest Its Maturing QE Assets

    QE increased the size of the Fed’s balance sheet almost eightfold since the turn of the century. Currently, the Fed’s balance sheet holds around $4.5 trillion.

    By Brent Nyitray, CFA, MBA
  • uploads///NLY financial performance Q
    Earnings Report

    What’s Annaly Capital’s Take on the Bond Market’s Volatility?

    Annaly positioned itself to reduce its interest rate risk and increase its credit risk. Since 2009, global bond markets have risen in value by about $17 trillion.

    By Brent Nyitray, CFA, MBA
  • uploads///Labor Force Particiption Rate
    Financials

    The Labor Force Participation Rate Increased in July

    In July 2016, the labor force participation rate rose to 62.8%—up 10 basis points from June. The labor force rose from 158.9 million to 159.3 million.

    By Brent Nyitray, CFA, MBA
  • uploads///Mortgage Rates
    Financials

    Mortgage Rates Rise with the Bond Market

    Lately, mortgage rates and bond yields have shown a weak correlation. Treasury yields have fallen over the past month, while mortgage rates have been steady.

    By Brent Nyitray, CFA, MBA
  • uploads///Mortgage Rates
    Financials

    Increasing Mortgage Rates Negatively Impact Mortgage REITs

    Mortgage rates are the lifeblood of the housing market. The Fed’s plan to help the housing market started when it pushed rates lower to allow people to refinance.

    By Brent Nyitray, CFA, MBA
  • uploads///Foreclosure percent
    Financials

    How Do Foreclosures Impact Mortgage REITs?

    The federal government has taken numerous steps to reduce foreclosures. It started with loan modification programs.

    By Brent Nyitray, CFA, MBA
  • uploads///Labor Force Particiption Rate
    Financials

    Labor Force Participation Rate Rose in June

    In June 2016, the labor force participation rate rose to 62.7%—up 10 basis points from May. The labor force rose from 158.5 million to 158.9 million.

    By Brent Nyitray, CFA, MBA
  • uploads///MBA Refinance Index
    Financials

    How Much Did Mortgage Refinance Applications Fall Last Week?

    Mortgage refinance applications, as measured by the MBA (Mortgage Bankers Association) Refinance Index, fell last week. Since mid-2013, refinances have been dropping dramatically.

    By Brent Nyitray, CFA, MBA
  • uploads///Mortgage Rates
    Financials

    Mortgage Rates Catch Up with Bond Yields

    Last week, the ten-year bond yield fell 12 basis points to 1.44%. Mortgage rates fell 10 basis points to 3.46%.

    By Brent Nyitray, CFA, MBA
  • uploads///MBA Mortgage Apps
    Financials

    Mortgage Applications Fell on the Brexit Vote

    Mortgage applications fell 2.6% last week after rising 2.9% the week before. Rates were increasing for most of the week, only to fall on Friday on the Brexit vote.

    By Brent Nyitray, CFA, MBA
  • uploads///Mortgage Rates
    Macroeconomic Analysis

    Housing Market: Mortgage Rates Head Lower

    Lately, mortgage rates and bond yields showed a weak correlation. Treasury yields fell over the past month. Mortgage rates have been steady.

    By Brent Nyitray, CFA, MBA
  • uploads///Labor Force Particiption Rate
    Macroeconomic Analysis

    The Labor Force Participation Rate Heads Back Down Again

    In May 2016, the labor force participation rate fell to 62.6%, down 20 basis points from April.

    By Brent Nyitray, CFA, MBA
  • uploads///Mortgage Rates
    Macroeconomic Analysis

    Mortgage Rates Rise with Treasury Yields

    Last week, the ten-year bond yield rose 14 basis points to 1.84%. Mortgage rates rose 6 basis points to 3.64%.

    By Brent Nyitray, CFA, MBA
  • uploads///Fed Assets
    Macroeconomic Analysis

    The Fed Continues to Maintain Its Bloated Balance Sheet

    Quantitative easing (or QE) has increased the size of the Fed’s balance sheet almost eightfold since the turn of the century.

    By Brent Nyitray, CFA, MBA
  • uploads///Labor Force Particiption Rate
    Macroeconomic Analysis

    Labor Force Participation Rate Rose: So Why Don’t We Feel Better?

    The unemployment rate has been falling, so why don’t we feel better about the economy? Let’s look to the labor force participation rate to answer that question.

    By Brent Nyitray, CFA, MBA
  • uploads///Labor Force Particiption Rate
    Macroeconomic Analysis

    Labor Force Participation Rate Still Mired at Multi-Decade Lows

    In October, the labor force participation rate held steady at 62.4%—its lowest point since 1977.

    By Brent Nyitray, CFA, MBA
  • uploads///Fed Assets
    Macroeconomic Analysis

    Why Did the Fed Decide to Keep Reinvesting Maturing QE Assets?

    The elephant in the room at the Fed is that rates need to return to more normal historical levels at some point.

    By Brent Nyitray, CFA, MBA
  • uploads///Mortgage Rates
    Macroeconomic Analysis

    Mortgage Rates Tick up Despite Bond Market Rally

    Last week, interest rates fell on the weak jobs report. The ten-year bond yield fell from 2.16% to 1.99%. Surprisingly, mortgage rates rose 5 basis points to 3.88%.

    By Brent Nyitray, CFA, MBA
  • uploads///Employment Cost Index
    Macroeconomic Analysis

    Employment Cost Index Falls

    The employment cost index increased 0.2% in the quarter ending June 30, 2015. This was a small increase from the fourth quarter of 2014.

    By Brent Nyitray, CFA, MBA
  • uploads///Mortgage Rates
    Macroeconomic Analysis

    Mortgage Rates Fell Last Week as the Bond Market Sold Off

    Last week, mortgage rates fell even though the bond market fell. This was because rates rose a few basis points too high…

    By Brent Nyitray, CFA, MBA
  • uploads///Labor Force Particiption Rate
    Macroeconomic Analysis

    The Labor Force Participation Rate Hits a Multi-Decade Low

    Since the Great Recession, the labor force participation rate has declined. It’s back to levels we haven’t seen since the late 1970s.

    By Brent Nyitray, CFA, MBA
  • uploads///Mortgage Rates
    Macroeconomic Analysis

    Mortgage Rates Rise as Bond Market Sells Off

    Mortgage rates are the lifeblood of the housing market. The Fed’s plan to help housing began when it pushed rates lower to allow people to refinance.

    By Brent Nyitray, CFA, MBA
  • uploads///MBA Mortgage Apps
    Financials

    Why mortgage applications hit 14-year lows as refinances dry up

    The MBA Applications Index fell 7.2% after rising 0.2% the week before. This is the lowest reading for the MBA Mortgage Applications Index since early 2001.

    By Brent Nyitray, CFA, MBA
  • uploads///Black Knight Origination
    Financials

    Must-know: Understanding non-qualified mortgage loans

    Non-QM loans would typically be useful for borrowers with sporadic income, but a large amount of assets. However, lenders will only consider low loan-to-value (or LTV) loans—like 80% maximum, which really is a ceiling. Most lenders are below that.

    By Brent Nyitray, CFA, MBA
  • uploads///delinquencies
    Financials

    A key guide to mortgage servicing rights: The non-bank servicer

    The non-bank servicer is what the name implies: a company that services loans as a primary business but isn’t a bank. Typically a bank will service its own loans that it has put on its balance sheet.

    By Brent Nyitray, CFA, MBA
  • uploads///MSR
    Financials

    The must-know basics of mortgage servicing rights and servicers

    Mortgage servicing rights (or MSRs) are interesting assets that can hedge interest rate risk. They’re usually held on banks’ balance sheets.

    By Brent Nyitray, CFA, MBA
  • uploads///Mortgage Rates
    Financials

    Mortgage rates rise 10 basis points on strong economic data

    The average 30-year fixed-rate mortgage rose 10 basis points, from 4.38% to 4.48%, while the ten-year bond rose 11 basis points.

    By Brent Nyitray, CFA, MBA
  • uploads///MBA Mortgage Apps
    Financials

    Why mortgage applications fell in the holiday-shortened week

    The MBA Applications Index fell 12.8% after holding steady the week before. Mortgage applications have dropped off a cliff ever since rates began increasing last spring.

    By Brent Nyitray, CFA, MBA
  • uploads///MBA Mortgage Apps
    Financials

    Why mortgage applications are falling as rates rise

    Last year, refinance activity drove business for mortgage bankers. Now, they’ll have to rely on purchase activity, which tends to be very seasonal.

    By Brent Nyitray, CFA, MBA
  • uploads///Two Harbors
    Financials

    Must-know: Two Harbors reports a small decline in book value

    Two Harbors’ sophisticated investment strategy of buying mortgage servicing rights and being short TBAs helped it weather the bond market sell-off.

    By Brent Nyitray, CFA, MBA
  • uploads///MR unemployment
    Financials

    September jobs report disappoints, December taper off the table

    The economy added 148,000 jobs in September—lower than the consensus forecast of 180,000. August was revised upward to 193,000 jobs from 169,000.

    By Brent Nyitray, CFA, MBA
  • uploads///MBA Mortgage Apps
    Financials

    Why mortgage applications rose despite the government shutdown

    Mortgage applications fall slightly The MBA Applications Index rose 0.3% after rising 1.2% the week before. Mortgage applications have dropped off a cliff ever since rates began increasing last spring. Both purchases and refinances drove the increase. The summer selling season is winding down, and we’re entering a slow period that will last through the […]

    By Brent Nyitray, CFA, MBA
  • uploads///MSR
    Financials

    Why mortgage servicing rights can hedge interest rate risk

    Mortgage servicing rights are residual assets from mortgage origination Mortgage servicing rights (MSRs) are residual assets that mortgage originators usually retain after selling a mortgage into a mortgage-backed security. While a few companies specialize in servicing—particularly Ocwen (OCN) and Nationstar (NSM)—MSRs are usually held on the balance sheets of banks. MSRs are interesting assets that […]

    By Brent Nyitray, CFA, MBA
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