Volume 2014 - Number 29
July 24, 2014
FHFA IG Report on Nonbanks Ticks Off Industry; But More ‘Operational Reviews’ Are on the Way
As a way to keep a tight grip on counterparty risk, Freddie Mac will start conducting bimonthly “operational reviews of certain specialty servicers” later this year. Not to be outdone, Fannie Mae will also perform such reviews, but only when a seller/servicer reaches a “certain mortgage loan delivery threshold.” The news – contained in a recent report from the Inspector General of the Federal Housing Finance Agency – isn’t likely to warm the hearts of fast growing nonbanks. Both Nationstar Mortgage and Walter Investment Management are mentioned by name in the report, which voices concerns thatsome nonbanks pose a risk to the government-sponsored enterprises because they have “limited financial capacity” to make good on representation and warranty contracts. Nationstar and Walter are...
Subscribers to Inside Mortgage Finance have full access to all its stories and data online. Visitors may become subscribers for full access or may purchase individual articles and data.
Subscriber Log In
If you are a current subscriber or already purchased this article, please login below.
A weekly "must read" for industry executives. Thoroughly covers regulatory, political, legislative and market issues in the residential mortgage business.
You can purchase this article for $55.00 without subscribing and always have access to it on insidemortgagefinance.com.
Please contact Customer Service if you need assistance: 1-800-570-5744