Mortgage Lending & Servicing

Browse articles from all of our Newsletters related to Mortgage Lending & Servicing.

February 22, 2017 - IMFnews

Thanks to Rising Rates, MSR Gains Boost Nationstar’s 4Q16 Bottom Line; Strong Revenue Growth Overall

Nationstar said it expects to board $144 billion of additional contracts in 2017, $111 billion of which is subservicing for New Residential Investment Corp.


February 21, 2017 - IMFnews

Short Takes: CoreLogic Executive Departs. No Reason Given / Getting Excited About Ocwen? / What Does Bill Erbey Know? / MountainView Hits Market with Two New MSR Deals / Norcom Expands Into Tampa

No details were available on why Dave Hurt parted ways with CoreLogic...


February 21, 2017 - IMFnews

Ocwen Share Price Spikes After Servicer Settles with California

“This is a fair and just settlement for California consumers,” said CDBO Commissioner Jan Lynn Owen. “The terms will hold Ocwen accountable for widespread violations of laws that harmed borrowers in our state.”


February 21, 2017 - IMFnews

MSR-Investing REIT New Residential More Than Doubles 4Q Profit to $225 Million

At Dec. 31, New Residential valued its mortgage servicing portfolio at $659 million...


February 21, 2017 - IMFnews

Trouble in the Jumbo Sector? Originations Decline for Second Consecutive Quarter; Market Share Down Too

Meanwhile, it appears that JPMorgan Chase is ready to surpass Wells Fargo as the market leader in jumbo production…


February 17, 2017 - IMFnews

What We’re Hearing: Huge GSE Profits, Don’t Get Used to It / The Perfect (Earnings) Storm / A Ginnie Solution for the GSEs? / PHH’s New Strategy / Aide to HUD Nominee Ben Carson Fired for Writings Critical of Trump

One former Fannie Mae official told us that stellar profits posted by the two are “just about done.”


February 17, 2017 - IMFnews

When it Comes to Firing CFPB Director Cordray, Maybe the Trump Administration is Going About it All Wrong…

“If Cordray were engaged in malfeasance, inefficiency or neglect of duty, don’t you think the Obama administration would have done something about that?” asked one legal scholar.


February 17, 2017 - IMFnews

Private MIs Expanded Market Share in 2016 Despite a Surge from the VA Guaranty Program

Most of the gain in private MI market share came at the expense of the FHA program…


February 16, 2017 - Inside Mortgage Finance

Mortgage Market at a Glance

Weekly mortgage rates and application survey data as well as indexes for ARMs.


February 16, 2017 - Inside Mortgage Finance

UI Report says Credit Access Tight, Harder to Obtain Mortgage Loan Today than Pre-Crisis

Despite some reports of credit access loosening, it’s harder to get a mortgage today than it was during the housing bubble, according to the Urban Institute. With borrowers being denied at a much higher rate than in the past, lower-credit mortgage applicants are dropping out of the housing market. As access to credit tightened after the financial crisis, many lower-credit applicants were discouraged from applying, the UI study noted. That led to a higher-credit applicant pool, which in turn led to a lower rejection rate. This caused...


February 16, 2017 - Inside Mortgage Finance

PE Investors Making Bets on ‘Disruptors’ That Use Tech to Build a Better Lending Mousetrap

A dozen or so private equity firms are taking a close look at investing in mortgage lending start-ups that claim they can originate and underwrite more cheaply than traditional players because of their cutting-edge technology. A handful of PE firms have already taken out their checkbooks, investing millions of dollars in lenders such as Better Mortgage and Nexera Holding LLC, which operates consumer-direct lender Newfi and a wholesaler called Bluestream. Roughly six months ago, Better received...


February 16, 2017 - Inside Mortgage Finance

Delinquencies Increase on a Quarterly Basis At the End of 2016, Foreclosures Decline

Mortgage delinquencies in the fourth quarter of 2016 hit their highest level of the year, erasing declines from the previous quarter, according to the Inside Mortgage Finance Large Servicer Delinquency Index. The foreclosure rate continued to decline, hitting levels last seen in 2007. Among the servicers tracked by the index, the total mortgage delinquency rate was 5.05 percent as of the end of the fourth quarter. The rate was at 5.54 percent at the end of 2015 and declined each quarter until the most recent period. Each delinquency bucket increased...[Includes one data table]


February 16, 2017 - Inside Mortgage Finance

If President Trump Wants to Fire CFPB’s Cordray, He’s Going About it All Wrong, Law Professor Says

Whether President Trump is serious about replacing the head of the Consumer Financial Protection Bureau remains to be seen. But his enthusiasm over the prospect may have gotten the better of his legal judgement and in fact perhaps laid the foundation for such a replacement to be reversed, one noted legal scholar suggested recently. “If Trump is planning on attempting to remove CFPB Director Richard Cordray ‘for cause,’ he’s hardly going about it in a smart way,” Adam Levitin, a law professor at Georgetown University, said in a recent online blog posting. “The Trump administration keeps generating more and more evidence that any for-cause removal would be purely pretextual, which strengthens Cordray’s hand were he to litigate the removal order (as he surely would).” To begin with, the reasons that are offered as justification for sacking Cordray – such as claims of employee discrimination at the bureau or the agency’s settlements with auto finance companies – refer...


February 16, 2017 - Inside Mortgage Finance

The Time is Right for a Boom in Servicing Sales. Another Month or Two of Slow Prepayments Could Spur Market

The secondary market for bulk agency mortgage servicing rights is beginning to pick up a decent head of steam, but one factor is holding it back from a full-throttle: worries about prepayment speeds. “We’ve had one month of low prepayment numbers,” said Mark Garland, president of MountainView Servicing Group, Denver. “A couple of more months would be better.” According to investment bankers who work the market, although rates have been on a steady climb since the November election – the yield on the benchmark 10-year Treasury is...


February 16, 2017 - Inside Mortgage Finance

CHOICE Act 2.0 Would Disembowel CFPB, Hensarling Would Use Budget to Push Through

A key Republican leader in the House of Representatives is looking to push legislation that would effectively neuter critical aspects of the Consumer Financial Protection Bureau that could lead to major changes in the agency’s oversight functions and capabilities, including mortgage rulemaking, supervision and enforcement. The congressman also indicated he might use a procedural technique related to the budget to ram his legislation past Democrat opponents in the Senate. The legislative vehicle of choice is...


February 16, 2017 - Inside Mortgage Finance

Private MIs Expanded Market Share in 2016 Despite Fourth-Quarter Surge by VA Guaranty Program

Private mortgage insurers grew their share of the primary mortgage insurance market during 2016 even though they lost some ground during the second half of the year, according to a new Inside Mortgage Finance ranking and analysis. Private MIs wrote an estimated $270.30 billion of new mortgage insurance last year, a robust 23.1 percent increase from 2015. The main engine was a 24.2 percent increase in traditional, or flow, MI business, coupled with a jump in bulk primary coverage – though such activity totaled just $860.0 million in 2016. Private MIs covered...[Includes three data tables]


February 16, 2017 - IMFnews

Short Takes: What Does Bruce Berkowitz Think? / Freddie Exploring SFR Market / BB&T Building New Servicing Center / CoreLogic CEO on Medical Leave / loanDepot Executive Jumps Ship for Wisconsin Lender

While most banks are running away from the business of servicing home mortgages, BB&T appears to like the space...


February 16, 2017 - IMFnews

More Red Ink for PHH in 4Q16; Nonbank Continues to Sell Assets; CEO Messina Sees Future as a ‘Capital Light’ Business

Over the past two years, PHH has lost $347 million, much of it caused by a private-label origination model that has fallen on hard times and rapidly declining interest rates…


February 16, 2017 - IMFnews

CFPB Explores Alternative Data Sources for ‘Credit Invisible’ Borrowers

The agency estimates there are 26 million Americans who are “credit invisibles...”


February 15, 2017 - IMFnews

A Large 4Q16 Loss for PHH; More Asset Sales...

Among the key announcements: the company is selling its PHH Home Loans joint venture to Guaranteed Rate; unloading its private label operations to LenderLive Network, and monetizing “certain” servicing assets.


February 15, 2017 - IMFnews

Short Takes: Branch Manager Departures at loanDepot / Nationstar a Candidate for PHH MSRs? / Delinquencies Spike in Some Categories / Still in Love with Ocwen: Bill Erbey / Coming Soon: Warehouse Ranking

Bill Erbey, who was forced out by financial regulators two-plus years ago, controls 16.8 percent of Ocwen Financial...


February 15, 2017 - IMFnews

SoftBank of Japan Agrees to Buy Fortress, Largest Investor in Nationstar Mortgage

It’s unclear at this point what the takeover might mean, if anything, for Nationstar, whose own share price has rallied the past few months.


February 15, 2017 - IMFnews

Tennessee Investor Pares Holdings in Walter Investment Management

Walter Investment/Ditech has yet to establish a date for the release of its fourth quarter results…


February 15, 2017 - IMFnews

The Mortgage M&A Game is On! In the Hunt: Blackstone, Flagstar and Others

“Anytime you have rates run up by 50 basis points, it usually takes about 90 days before a washout begins,” said one mortgage advisor.


February 14, 2017 - IMFnews

Short Takes: Strong Earnings for Arch / More Subprime MBS Deals May Hit the Market / A New Loan Program from Citadel / CFTC Issues No Action Letter

In the nonconforming market, Citadel Servicing Corp., Irvine, CA, has just rolled out a new 12-month bank statement loan program…


February 14, 2017 - IMFnews

Lawmaker Seeks Clarity on CFPB’s Compliance with Trump’s Regulatory ‘Freeze’ Memo

The subcommittee chairman notes: “Therefore, I was surprised by your public hesitancy last week to affirm that the president’s regulatory freeze applies to the CFPB…”


February 13, 2017 - IMFnews

IMA and Phoenix Capital Hit Market with New MSR Deals

Phoenix Capital is offering a private jumbo MSR portfolio sized at $216 million…


February 13, 2017 - IMFnews

Money Manager Senator Investment Cuts Stake in Radian to Zero

Radian recently reported net earnings of $61.1 million for the fourth quarter…


February 13, 2017 - IMFnews

Can Walter/Ditech Find a Path Forward?

Institutional investors tend to avoid any stocks that are priced below $5 a share. At press time, Walter’s stock was trading at $3.40.


February 13, 2017 - IMFnews

Are GSE Loan Sellers Finally Easing up on Credit Standards?

In the purchase market, GSE sellers appeared to reach to qualify more borrowers…


February 10, 2017 - Inside The GSEs

GSE Roundup

FHFA PLS Actions Update. The Federal Housing Finance Agency published an update on litigation it initiated against 18 financial institutions for securities law violations and fraud regarding private-label securities sales. Seventeen cases were settled in 2013 and 2014. JP Morgan Chase settled for $4 billion, Deutsche Bank settled for $1.9 billion and Goldman Sachs for $1.2 billion. A case against the Royal Bank of Scotland remains. The settlement money ultimately goes to the Treasury through the dividend sweeps. Fannie Exec Tapped for CFPB? Brian Books, Fannie Mae’s general counsel, is being considered by the White House to head the Consumer Financial Protection Bureau, according to a...


February 10, 2017 - Inside The GSEs

Fannie SFR Pilot Stirs Reaction From Trade, Consumer Groups

Fannie Mae’s recent dip into testing the single-family rental market in an agreement to fund up to $1 billion of collateral owned by Invitation Homes has caught the industry’s attention, and not necessarily in a good way. This is the first time the GSE has financed a large institutional single-family rental home investor. The Dallas-based company is a subsidiary of The Blackstone Group and has about 50,000 homes in its portfolio that it acquired from foreclosure auctions. However, some are now accusing Fannie of mission creep. The National Community Stabilization Trust President Robert Grossinger said, “I am perplexed to see Fannie Mae place a taxpayer guarantee behind the same private interests whose risky practices led to...


February 10, 2017 - Inside The GSEs

MH RFI Extended, Industry Said DTS Shouldn’t be Optional

The Federal Housing Finance Agency this week extended the deadline for public input on a potential chattel-loan pilot to support manufactured housing. The reactions so far to the manufactured home portion of the final duty-to-serve rule, which included a request for input on chattel lending, have been mixed. In December, the FHFA gave the green light for Fannie Mae and Freddie Mac to begin pilot programs for the loans. Since then, the agency issued the RFI and extended the original deadline of Feb. 17 to March 21, 2017. The FHFA also hosted several listening sessions on the topic to get input. During the first session in Chicago, one organization called the FHFA’s DTS rule on manufactured home lending “intolerable.”


February 10, 2017 - Inside The GSEs

Fannie Mae Updates Requirements For Appraisal Review and Comps

Fannie Mae recently made changes to its appraisal process and financial eligibility requirements for seller/servicers. In order to be able to use its discretion to enforce breaches of financial eligibility requirements that apply to seller/servicers, the GSE said it had to change certain polices. This allows Fannie, when warranted, to determine whether a breach of the lender contract should be called. “The changes include how lenders can comply with our requirements for maintaining minimum acceptable levels on capital,” said Jude Landis, Fannie’s vice president of credit policy. Prior to the change, explicit criteria in its selling guide limited Fannie’s ability to apply enforcement discretion.


February 10, 2017 - Inside Mortgage Trends

DocuSign Taps G Suite in Broader Digitization Push

Industry technology vendor DocuSign has tapped into some of the technological capabilities of Google – the G Suite collection of electronic tools, in particular – as part of a strategic initiative to digitize the mortgage closing process and sharply reduce the time it takes to close on a loan. “The broader idea for DocuSign – and Google Suite plays into this as well as the things that we’re doing with our ‘lead to close’ strategy – is wanting to take away any of the friction from completing ...


February 10, 2017 - Inside Mortgage Trends

Can Walter/Ditech Find a Path Forward?

Walter Investment Management Corp. has yet to release fourth-quarter results, but if its nine-month performance is any indication, it has some major challenges ahead. Through September, the publicly traded nonbank – the nation’s eighth-largest servicer via its Ditech unit – lost $506.9 million, some of it tied to non-cash writedowns on its mortgage servicing rights. But if revenues are any indication of future earnings, investors shouldn’t brace for too much good news in its ...


February 10, 2017 - IMFnews

CHOICE Act 2.0 Would Restructure CFPB, Limit its Power

The revised Financial CHOICE Act from Rep. Jeb Hensarling, R-TX, would substantially limit the authority of the Consumer Financial Protection Bureau.


February 10, 2017 - IMFnews

Short Takes: Senate Unlikely to Approve New CHOICE Act / Cherry Hill Receives Ginnie Approval / Newer Mods Re-Defaulting Faster / Fewer Underwater Borrowers

Analysts at FBR Capital Markets said the revised Financial Choice Act has “little chance of passage” in the Senate.


February 10, 2017 - IMFnews

First Nonprime MBS from Invictus Receives AAA Ratings

The bulk of the contributions for the MBS were aggregated by Invictus’ Verus Mortgage Capital affiliate. Servicing will be handled by Specialized Loan Servicing.


February 9, 2017 - Inside Mortgage Finance

Mortgage Market at a Glance

Weekly mortgage rates and application survey data as well as indexes for ARMs.


February 9, 2017 - Inside Mortgage Finance

NAR Cites ‘Imaginary Barriers’ to Purchase-Mortgage Lending, and Affordability as an Actual Concern

A number of factors – including misconceptions – are preventing some potential homebuyers from pursuing purchase mortgages, according to the National Association of Realtors. The trade group said it has found “real and imaginary barriers holding back prospective homebuyers.” The so-called imaginary barriers involve potential borrowers’ perceptions about downpayment requirements. “Apparent confusion about downpayment requirements may be...


February 9, 2017 - Inside Mortgage Finance

Many Metro Markets Witnessed Record Home Price Highs in 2016, Distressed Sales Down

Home prices in 2016 soared as a number of metropolitan areas reached record new home price highs, according to ATTOM Data Solutions’ yearend report on home sales. Among 201 metropolitan statistical areas with populations of at least 200,000, 44 percent hit new all-time home price peaks last year. Those areas include Dallas-Fort Worth ($230,571), Houston ($214,795), Atlanta ($181,000), Boston ($390,000) and San Francisco ($720,000). Three Ohio markets, Cincinnati, Columbus and Dayton, also reached...


February 9, 2017 - Inside Mortgage Finance

Fairholme Explains That It’s Not a ‘Speculator’ in GSE Stock; Waiting on a Resolution that May Never Come?

In a new annual letter to shareholders, Fairholme Capital Management once again lays out its argument for investing in Fannie Mae and Freddie Mac stock, trying to explain to its wealthy investors that it feels more secure in owning junior preferred shares than common stock. Among other things, Fairholme said the preferred stock “provide(s) us with greater security and certainty than the common stock and, as you know, we are not speculators.” When it comes to a liquidation preference, preferred shareholders are senior to common shareholders, who often receive nothing when a company goes bust. But Fairholme’s problem – one shared by other firms that still own this class of stock – is...


February 9, 2017 - Inside Mortgage Finance

Carson Seeks ‘Strong Housing Finance Practitioner’ For FHA Post, Promises More Clarity for Lenders

Ben Carson, who is expected to be confirmed soon as the next secretary of the Department of Housing and Urban Development, said he’s looking for an experienced mortgage professional to guide the FHA program during his tenure. In recent years, the top FHA job has been held by people with more experience in government than in the mortgage business. The last industry veteran in the post was Dave Stevens, who brought years of mortgage finance experience when he took the job in the first Obama administration. He left in 2011 to become president and CEO of the Mortgage Bankers Association. In response to written questions from Senate Democrats, Carson said...


February 9, 2017 - Inside Mortgage Finance

HUD IG Says FHA Improperly Cleared New Defect Taxonomy and Pushes for Recall, HUD Holds Ground

The Department of Housing and Urban Development is facing criticism for its handling of FHA’s loan quality assessment methodology. A draft of the so-called defect taxonomy was published without proper departmental clearance, according to a recent report by HUD’s Office of Inspector General. The defect taxonomy is one of 13 FHA-related documents the OIG claims were not properly cleared. The OIG called on HUD to pursue departmental clearance for the documents and policies and to recall any documents that can’t be appropriately cleared. A recall of the defect taxonomy would be...


February 9, 2017 - Inside Mortgage Finance

PHH Prevails in Rejecting Intervenors in CFPB Dispute

Late last week, a three-judge panel of the U.S. District Court of Appeals for the District of Columbia Circuit agreed with arguments made by PHH Corp. and blocked three separate efforts to intervene in the dispute the lender has with the Consumer Financial Protection Bureau. In a simple, single-page order, the three judges "ordered that the motions be denied." The ruling affects...


February 9, 2017 - Inside Mortgage Finance

Trump Exec Order Puts Dodd-Frank in Crosshairs; No Immediate Impact, Sets Table for Future Action

President Trump late last week signed an executive order laying out his “core principles” for regulating the U.S. financial system, and giving the head of the Treasury Department 120 days to detail how the current massive regulatory regime measures up. Trump’s core principles include fostering informed consumer choices, preventing bailouts, promoting economic growth, tailoring regulations and ensuring regulatory accountability. The broadly-worded order specifies, “Nothing in this order shall be construed to impair or otherwise affect ... the authority granted by law to an executive department or agency, or the head thereof.” The order was...


February 9, 2017 - Inside Mortgage Finance

The Mortgage M&A Game Is On. In the Hunt: Blackstone, Caliber, Flagstar, RPM and Others

Six weeks into the new year and it appears that merger-and-acquisition activity in the mortgage industry is finally picking up – big time. Over the past 10 days, several – mostly “asset” related – deals have come to light, with the action being driven by private-equity money that’s backing nonbank lenders. Wall Street giant The Blackstone Group, which has a PE division, is involved as well. So far, the only depository that appears to be playing in the M&A surge is...


February 9, 2017 - Inside Mortgage Finance

Record Pace for Government Market Lost Steam in Late 2016 As Purchase-Mortgage Lending Swooned

Conventional mortgage originations held steady during the fourth quarter of 2016, but the government-insured market saw a noticeable downturn, according to a new Inside Mortgage Finance ranking and analysis. Production of conventional mortgages that fit under the purchase limits for Fannie Mae and Freddie Mac actually edged up 1.3 percent from the third quarter, hitting an estimated $322.0 billion. That was the sector’s strongest three-month origination volume since the second quarter of 2013, when lenders pumped out $363.0 billion of conventional-conforming loans. Jumbo mortgage originations were...[Includes two data tables]


February 9, 2017 - IMFnews

Radian Picks Another Lending Executive as its New CEO: Rick Thornberry

Spencer Stuart, headhunting firm, aided the MI in its search for a new CEO. A few months back former Freddie Mac executive Bruce Witherell was approached about the job, but passed.


Poll

With rates higher this year, there has been talk of lenders liberalizing their underwriting standards in an effort to increase volume and make up for lower refis.

Do you think your shop will loosen standards over the coming three months?

Yes, but not by much.
Yes, by a lot.
Yes and, heck, we may even do non-QM lending.
No, not at all.
No and we may even tighten credit.

vote to see results