The movement of benchmark interest rates, coupled with significantly lower lending
volumes and surging prices for collateral, could make Q3 ’17 a very interesting — and treacherous — earnings period for financials with exposure to MSRs and other aspects of residential
housing finance.
«When we look at loan
volume, government sponsored enterprise [GSE] mortgages have taken on increased importance, with multifamily and seniors
housing becoming more dependent on Fannie Mae and Freddie Mac as a major source of long - term debt
financing,» said Robert G. Kramer, president of NIC.