By Brandon Ivey

The Top Subprime Servicers in 2011 and the Outlook for 2012

February 14, 2012

This week’s issue of Inside Nonconforming Markets will include a ranking of the top subprime servicers as of the end of 2011. Non-bank servicers led by Ocwen Financial have been increasing their subprime holdings while major banks have decreased their exposure to the high-touch assets. The consolidation among special servicers is expected to continue due to capital requirements for banks and borrower-performance issues. 

Other stories slated for publication in the newsletter this week include: 

  • A look at the impact the recent servicing settlement agreed to by major banks could have on non-agency MBS investors 
  • A ranking of the top non-agency HAMP servicers as of the end of 2011 
  • An overview of the newly popular market for vintage non-agency MBS 
  • Optimism from investors on non-agency REITs 
  • Details on the delays faced by a company looking to issue new non-agency MBS

Other areas of interest

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Poll

Are current mortgage underwriting standards too tough?

Yes, they don’t reflect current market conditions and need to be adjusted to allow borrowers with below 700 FICO scores and smaller downpayments to qualify for mortgages.
Yes, and something needs to be done to significantly reduce repurchase or buyback risk so that lenders don’t apply even tougher underwriting overlays.
No, the standards are appropriate given current risks and the major default problems the mortgage market has experienced over the past several years.

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