NRZ - Why New Residential Will Benefit From New Housing Policy
Mortgage originators are coming off their best year since 2003 after COVID-19 pushed the Federal Reserve to cut interest rates, which prompted a massive wave of refinancing activity. This year was expected to be almost as good, but rising interest rates have forced many in the industry to trim expectations.
Meanwhile, Fannie Mae just threw a curveball at the industry, announcing that it would limit the total number of investment property loans it will guarantee to 7%. This change is bad news for most originators -- however, that loan demand will get fulfilled somewhere else, and that is where New Residential (NYSE: NRZ) comes in.
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Why New Residential Will Benefit From New Housing Policy