Ocwen's regulatory burdens send up red flags and drive down stock price

Ocwen's regulatory burdens send up red flags and drive down stock price

Analysts lower price target, Citi drops buy recommendation

Activist investors critique Zillow, Trulia deal

Valuations skyrocket while earnings expectations have fallen

4 factors weighing down housing in the second half of 2014

Will housing collapse?
W S
Servicing

American Capital doubles down on MSRs

April matches 1Q2014 MSR investments

pile of coins

American Capital Mortgage Investment (MTGE) is ramping up its mortgage-servicing rights deals, investing more in April than it did in the entire first quarter.

In the company’s first-quarter earnings, it reported that it invested $23 million in MSRs during the quarter.

But in April alone, American Capital invested an additional $25 million.   

“We continue to broaden our investment capabilities with the integration of Residential Credit Solutions, Inc. and have started acquiring MSR investments," Gary Kain, President and Chief Investment Officer of American Capital said.

As a whole, the company reported net income for the first quarter of $48.8 million, or $0.95 per share.

And America Capital is not the only company expanding its reach into MSRs.

"We remain confident that 2014 will be a favorable year for MSR transactions. Large banks will likely continue to sell high-touch servicing, while higher interest rates and a better economic backdrop could further improve MSR values," said CEO of New Residential (NRZ) Michael Nierenberg in a letter to investors

Recent Articles by Brena Swanson

Comments powered by Disqus