Mortgage Servicers

Browse articles from all of our Newsletters related to Mortgage Servicers.

March 4, 2015 - IMFnews

Ginnie Mae Facing Accounting Restatement Thanks to TBW Mess

Ginnie is currently managing TBW’s FHA portfolio and hopes to sell its Ginnie servicing rights sometime this year.

March 4, 2015 - IMFnews

Short Takes: JPM’s New Jumbo MBS Deal / Regulatory Hassles for ASPS / Altisource Asset Management’s $9 Million Man / CFPB Chief Continues to Defend the Rate-Tracker Tool

Although George Ellison’s salary was not disclosed in the press release announcing his employment with the company, a subsequent filing provided details: $450,000 per year, another $450,000 in incentive bonuses...

March 4, 2015 - IMFnews

More Details Leak Out on Ocwen’s $45B MSR Sale: Bifurcated Reps and Warrants

“If something goes wrong, Ocwen will be on the hook,” said this source. “But it’s really clean stuff.”

March 4, 2015 - IMFnews

When it Comes to Subprime Modifications, Little Evidence of Racial Discrimination

The researchers said their data included seven of the 10 largest servicers based on market share.

March 3, 2015 - IMFnews

Short Takes: HLSS Wants an Extension Too / What’s Behind Ocwen’s Goodwill Charge? / Stewart Title Headed to the Auction Block? / FHFA’s NPL Guidelines Expected? / Ben Lawsky Has Not Gone Home Yet

Meanwhile, Ocwen watchers are scratching their heads over a fourth quarter goodwill charge that eventually could reach $420 million...

March 3, 2015 - IMFnews

A ‘Bank’ Is Buying Ocwen’s $45 Billion Package of Fannie Mae Servicing Rights

The identity of the bank could not be confirmed at press time...

March 3, 2015 - IMFnews

Disconnect Between Mortgage Industry and Obama Administration on Priority of GSE Reform

With little non-agency MBS issuance, Collingwood noted that it’s difficult to accurately price credit risk.

March 3, 2015 - IMFnews

Bank Profits From Mortgages Down Almost 24 Percent

Bank of America was among the few major depositories that reported a loss in mortgage-banking income, losing $253 million in the fourth quarter.

March 2, 2015 - IMFnews

Ocwen Updates: Big Goodwill Charge, Plans to Sell $45 Billion of Fannie MSRs

Coupled with a recently announced Freddie Mac MSR sale to Nationstar ($9.8 billion), Ocwen estimated the sale of GSE receivables will generate $550 million in gross proceeds.

March 2, 2015 - IMFnews

Short Takes: FHFA Wants Greater Accountability on GSE NPL Sales / A Fannie NPL Auction? / Ocwen Earnings Not Coming Soon? / Radian Lassoes 200 New Customers / Michael Kim Moves to Apollo

On Monday, the Federal Housing Finance Agency published new guidelines to govern nonperforming loan sales by Fannie Mae and Freddie Mac...

March 2, 2015 - IMFnews

Phoenix Offering Flow Deal That Could Yield $3.6 Billion of Product

Eventually, the seller may offer $500 million per month in GSE product or $6 billion per year.

March 2, 2015 - IMFnews

Fortress-Controlled Nationstar Files a $1 Billion Shelf for Debt, Stock and More

Nationstar is 74 percent owned by hedge fund giant Fortress Investment Group.

March 2, 2015 - IMFnews

Ocwen’s Servicing Sales: A ‘Controlled Liquidation’?

A spokesman for Ocwen declined to comment on the “controlled liquidation” characterization and could offer no time table on when the lender/servicer might release its fourth quarter results.

March 2, 2015 - IMFnews

Dragged Down by the Nonbanks, Mortgage Banking Income Slipped in 4Q

For all of 2014, this group of banks and nonbanks earned $14.01 billion off of mortgages, a 39.6 percent drop from the year before.

February 27, 2015 - IMFnews

Ocwen Tallies Up the Financial Damage on Servicing Terminations: $800,000; Speculation over 4Q Results Mounts

One investor, commenting on the lack of information regarding 4Q results, told IMFnews: “I think the attorneys are going to make them disclose a lot of stuff that they have been brushing under the rug..."

February 27, 2015 - Inside Mortgage Trends

Improvements Seen in Processing of Short Sales

Servicers are benefitting from quicker transaction times on short sales, according to Fannie Mae. The government-sponsored enterprise said transaction time has been cut in half for short sales compared with the end of 2012, though the number of these transactions has also declined significantly. Short-sale transaction timelines currently average 45 days to 60 days, down from an average of 120 days in late 2012, according to a post on Fannie’s Housing Industry Forum website. The GSE said the HomePath short sale portal has helped reduce the time it takes to complete a short sale. The portal was released...

February 27, 2015 - Inside Mortgage Trends

Mortgage Banking Income Declined in 4Q14, Nonbanks Made Things Worse

A handful of nonbank mortgage companies reporting substantial losses during the fourth quarter weighed down industry-wide mortgage banking income, according to a new Inside Mortgage Trends analysis of earnings reports. A diverse group of 31 mortgage lenders that includes the biggest players in the market earned a combined $3.227 billion on their mortgage banking operations during the fourth quarter. That was down 8.2 percent from the group’s $3.516 billion during the third quarter. The fourth quarter was...[Includes one data chart]

February 27, 2015 - IMFnews

What We’re Hearing: The Return of the Megabanks (in Mortgages)? / Nationstar Smelling Like a Rose (In Comparison)? / Why Quicken and Freedom May Never Go Public / CMG Mortgage Expects Strong Production Growth

After seeing what’s transpired at Nationstar, Owen and Walter the pass year, would Dan Gilbert (who owns Quicken Loans) and Stan Middleman (Freedom’s owner) ever ponder going public?...

February 27, 2015 - IMFnews

Yes, Wells Fargo Has Lost Market Share, but It’s Still the ‘Big Kahuna’ of Mortgages

Nonbanks have become more competitive the past few years, but if you think that Wells Fargo doesn’t like mortgages, think again.

February 27, 2015 - IMFnews

Can the GOP Succeed in Getting Appropriations Power Over the CFPB?

The window to pass reform measures, even narrowly targeted provisions that have bipartisan support, might be closing.

February 27, 2015 - Inside MBS & ABS

Mortgage Industry Counting on Slightly Lower Guaranty Fees for Fannie and Freddie MBS

Although the Federal Housing Finance Agency has yet to tip its hand on where it might be headed regarding guaranty fees, most of the industry is betting on no change at all – or possibly a slight reduction, according to interviews conducted by Inside MBS & ABS over the past two weeks. Moreover, Fannie Mae and Freddie Mac themselves are playing a key role in the decision-making process, at least that’s what Freddie CEO Donald Layton said recently. “Guaranty fees are...

February 26, 2015 - Inside Mortgage Finance

Suddenly, Ocwen is Popular Among Investment Bankers That Want to Help With Its ‘Managed’ Liquidation

Ocwen Financial – once deemed the fastest-growing residential servicer in the nation – is now facing huge shrinkage and is undergoing what some analysts and investment bankers are now calling a managed or “controlled” liquidation. The questions facing investors and business partners of the company is how fast can Ocwen shrink and what will be left for shareholders other than a pile of cash. “This could be...

February 26, 2015 - IMFnews

Short Takes: Gone But Not Forgotten: MetLife’s Mortgage Unit / BB&T Facing Heat from DOJ and HUD OIG / Walter Optimistic, but Investors Aren’t / The ‘Father’ of the CFPB: President Jimmy Carter

Although Walter Investment Management lost a ton of dough in 2014, it sees brighter days ahead...

February 26, 2015 - IMFnews

Walter Reports a $44 Million Loss, Revenue Declines, and a Regulatory Settlement with the CFPB

Walter's cash-flow declined noticeably: For the full year, revenues came in at $1.5 billion, a decline of $315.3 million or 17 percent...

February 26, 2015 - IMFnews

Nationstar’s Profit Drops 82 Percent, Originations Fall; However, $35B of MSR Deals Revealed

The fourth quarter was Nationstar’s worst production quarter of the year.

February 25, 2015 - IMFnews

Short Takes: $558 Billion in Delinquent Mortgages / Subprime Looking Up / How Much Will Ocwen Cut in India? / PHH’s Retail Perceptions / Dealing with the CFPB

One of the biggest knocks on PHH Mortgage is that it has little in the way of traditional retail, relying instead on private label partners like Merrill Lynch.

February 25, 2015 - IMFnews

Credit Reporting Complaints Rise; Experian the Complaint ‘King’

Experian led the pack in terms of complaints with a cumulative total of 15,847.

February 25, 2015 - IMFnews

10 Mile Capital Ready to Invest in Mortgage Banking Firms

A veteran of Bank of America, GE Capital and other financial service firms, Williams said he hopes to unveil 10 Mile’s first investment in April.

February 25, 2015 - IMFnews

Over Two Years, JPM Has Slashed Mortgage Staff by 41 Percent

Kevin Waters said Chase has reduced its mortgage staffing levels due to declines in originations and improvements in mortgage performance.

February 25, 2015 - IMFnews

Ginnie Servicing Rights Top $1.5 Trillion but Growth Slows

PennyMac Loan Services, the only nonbank to rank among the top five, had one of the strongest growth rates with 56.7 percent.

February 24, 2015 - IMFnews

Short Takes: Next Up, Walter Investment / Why No ‘Big’ Mortgage M&A? / Lay Offs At… / Sterne Agee Slated for Sale / The CFPB, an ‘X-Factor’?

We understand from one very good source that a top 30-ranked lender has been quietly trimming staff of late….

February 24, 2015 - IMFnews

Ocwen Mum on When it Will Release Fourth Quarter Earnings

Meanwhile, investors are beginning to focus on some of the contractual language in the sale agreement between New Residential Investment Corp., and Home Loan Servicing Solutions...

February 24, 2015 - IMFnews

In Earnings Call Redwood Cites ‘Excess Capacity’ in Correspondent Channel

In recent years, Redwood has focused on jumbo mortgages but the REIT is now placing a greater emphasis on conforming loans.

February 23, 2015 - Inside the CFPB

Vendors Nailing Down Smallest Details to Keep Clients Compliant

With many small and mid-tier mortgage companies and banks increasingly worried about straying from compliance with the CFPB’s expanding rules and requirements, vendor representatives are working overtime to alleviate their clients’ anxieties and keep them on task and on budget. “We’re really seeing a lot of fear in the CFPB’s steadily intensifying regulations and requirements,” said Mary Beth Doyle, founder and co-owner of Loyalty Express, a mortgage marketing technology vendor in Woburn, MA. As recently as a year or a year-and-a-half ago, companies were saying they would wait to hear about a new rule themselves from the CFPB. “And today, people are more panic driven. There’s this sense of paralysis because everyone’s afraid of stepping out of bounds and not ...

February 23, 2015 - IMFnews

Short Takes: A Nice Bump for Ocwen’s Share Price / Will Ocwen Unload Non-Agency MSRs Too? / CashCall’s Non-QM Loan / Fidelity Grows Revenues 21 Percent

In case you’re wondering, Ocwen services roughly $208 billion of non-agency product.

February 23, 2015 - IMFnews

The ‘Other’ Ocwen-Nationstar Related Deal: HLSS Being Sold to New Residential

Ocwen, which is in the process of liquidating its massive agency MSR holdings, is a subservicer to HLSS.

February 23, 2015 - IMFnews

Nationstar Agrees to Buy Almost $10B of MSRs From Ocwen; More Deals Ahead?

The sale and transfer must first be approved by Freddie and its regulator, the Federal Housing Finance Agency.

February 23, 2015 - IMFnews

Fitch Downgrades More than 100 Non-Agency MBS Serviced By Ocwen Due to Risk of Servicer ‘Disruption’

Nearly $1.0 billion in non-agency MBS was included in the rating action by Fitch.

February 20, 2015 - IMFnews

Ocwen Agrees to Sell $9.8 Billion of MSRs to Nationstar; ‘New Rez’ Will Buy HLSS

New Residential will pay roughly $18.25 a share for HLSS, valuing the deal at $1.3 billion.

February 20, 2015 - Inside FHA Lending

Around the Industry

Issuer Performance Tool. Ginnie Mae expects to release its long-anticipated Issuer Operational Performance Profile system on or about Feb. 24. The IOPP system features a scorecard to measure an issuer’s compliance with Ginnie Mae standards and to compare its performance with those of its peers. Final Tier Ranking Scores. The FHA has issued a reminder that under the Tier Ranking System II (TRSII) Servicer narrative, all scored servicers – including those that have not opted out – may have their names and performance scores published on the Department of Housing and Urban Development’s Tier Ranking System page on at the end of each calendar year. The information is now available for review. TRSII scores servicer compliance with HUD/FHA delinquent servicing guidelines and requirements in the areas of delinquency intervention, loss mitigation based on ...

February 20, 2015 - Inside FHA Lending

Ginnie Mae Servicing Up Slightly in 4Q, 2014

Ginnie Mae servicing volume gained a mere percentage point in the fourth quarter of 2014 from the previous quarter, capping a productive year for servicers of government-backed mortgages, according to Inside FHA Lending’s analysis of agency data. Servicing volume rose by only 1.0 percent to $1.5 trillion during the last three months of 2014 from $1.4 trillion in unpaid principal balance in the first quarter, and increased 4.0 percent year over year. Four out of the top five Ginnie Mae servicers were banks, of which three experienced declines in their servicing portfolios on quarterly and year-over-year bases. The leader of the pack, Wells Fargo, closed out the year with $416.0 billion in Ginnie Mae servicing and capturing 27.8 percent of the market. Its servicing portfolio fell ... [ 1 chart ]

February 20, 2015 - Inside FHA Lending

VA to Issue Final ‘Qualified Mortgage’ Rule in May

The Department of Veterans Affairs expects to have a finalized Qualified Mortgage (QM) rule by May to help clear up some issues that have arisen since the agency issued an interim final rule last spring. The VA issued the interim QM rule for comment on May 9, 2014, to define which VA loans will have QM status under the ability-to-repay (ATR) rule. Issued by the Consumer Financial Protection Bureau, the ATR rule provided temporary QM status to loans eligible for FHA insurance and guaranties by the VA and the Department of Agriculture’s Rural Housing Service. Eligible government-backed loans must be 30-year fixed-rate with no interest-only, negative amortization or balloon features. Total points and fees must not exceed 3 percent of the total loan amount for loans of $100,000 or more. Loans that meet the definition of a temporary VA-eligible QM are considered as in compliance with the ATR rule. They are designated as “safe harbor QMs,” provided they are not ...

February 20, 2015 - Inside FHA Lending

Lenders Urged to Study Changes in New Handbook

FHA lenders should spend the next couple of months familiarizing their staff with the requirements in the FHA’s new Single Family Housing Policy Handbook to ensure proper implementation of the changes on June 15, 2015, according to compliance experts. The impending changes in the Single Family Handbook are complex and significant. Lenders will need proper legal guidance to navigate and understand hundreds of pages of consolidated housing policies and guidance, as well as substantive changes to FHA requirements, said K&L Gates experts in a recent analysis. The handbook is a consolidated, authoritative source of single-family housing policy and is meant as a one-stop resource for FHA lenders. It gathers and streamlines all FHA requirements, which are currently spread throughout various handbooks, mortgagee letters and other documents, making it easier for lenders to ...

February 20, 2015 - IMFnews

What We’re Hearing: A GSE ‘Flying Naked’? / When Hedging Losses Turn Into Gains / 2018 is Year Zero / The C&I Conundrum / IBM’s Seterus Up to Something? / Former First Mariner Mortgage Chief Wins ‘Non-Compete’ Case

In 2018, the GSE capital buffer falls to zero dollars. Zilch. Nada. Hopefully by then, President Bush or President Clinton will have worked out a GSE reform deal with Congress…

February 20, 2015 - IMFnews

Fannie Posts Much Lower Earnings; CEO Says Lack of Capital Cushion Increases Likelihood of a Treasury Draw

When it comes to capital cushions, 2018 is "Year Zero" for Fannie Mae and Freddie Mac.

February 20, 2015 - IMFnews

On the Rise Again: Residential Foreclosures; Say Hello to ‘Foreclosure Spring’

“Due to our ponderous judicial system, most of the options have been exhausted, and the judges are now expediting the [foreclosure] process,” said Mike Pappas, president and CEO of the Keyes Company.

February 20, 2015 - Inside MBS & ABS

Is Now the Time to De-emphasize RMBS and Plow Into Servicing Rights? Cherry Hill Is…

Cherry Hill Mortgage Investment Corp., which has 76 percent of its assets invested in MBS, plans to whittle that down a bit and make a major push into mortgage servicing rights. The question is: will other real estate investment trusts follow suit? One REIT executive, who spoke under the condition his name not be used, said...

February 20, 2015 - IMFnews

Altisource Asset Management Corp. Hires Bank of America’s ‘Clean Up’ Man as CEO

AAMC said that while at BofA, Ellison was “the executive leading the team that managed the valuation and disposition of Bank of America’s legacy mortgage loan portfolio.”

February 19, 2015 - Inside Mortgage Finance

VA Volume Increases Year Over Year in 4Q14; Agency’s Final ‘Qualified Mortgage’ Rule Expected in May

Production of loans with a Department of Veterans Affairs guaranty increased 44 percent in the fourth quarter of 2014 compared to the same period a year ago, thanks to strong refinance activity during the holidays, according to an agency spokesman. John Bell, assistant director for loan policy and valuation with the VA Home Loan Guaranty Service, said VA streamline refinance activity rose 18 percent year over year as more veterans took advantage of lower interest rates and lower downpayment in the fourth quarter. He said the VA is still in the process of collating data, declining to give further details. Nonetheless, VA production in the fourth quarter was fueled...

February 19, 2015 - Inside Mortgage Finance

Foreclosure Activity Increasing as Mortgage Servicers Work Through Judicial Process

While mortgage performance continues to improve, servicers have put an increased emphasis on completing foreclosures in recent months, according to industry analysts. Foreclosure starts and bank repossessions have increased after more than a year of monthly declines, according to RealtyTrac. “Foreclosure ‘spring cleaning’ got off to a quick start in January,” said Daren Blomquist, a vice president at RealtyTrac. Servicers typically observe...


With the recent dip in interest rates, how do you feel about loan volumes this year?

We see loan production ending 2015 flat compared to 2014.
We’re optimistic that our originations will rise by 10 to 20 percent year over year.
We’re really optimistic: We expect production to increase by 20 percent or better from last year.
We’re not so bullish. Originations for us may actually fall.

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