Mortgage Servicers

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

February 12, 2016 - Inside FHA/VA Lending

Around the Industry

House Approves Legislation Streamlining FHA Condo Rules, Allowing DE Lenders for USDA. Housing reform legislation that would ease FHA restrictions on condominium financing and allow delegation of loan approval authority to qualified lenders under the U.S. Department of Agriculture’s rural housing programs passed the House last week by a vote of 427-0. Described as an FHA reform bill, H.R. 3700, the “Housing Opportunity Through Modernization Act,” would modify FHA requirements for condo mortgages by streamlining FHA’s project certification requirements to qualify condominiums for FHA financing as well as making recertification less burdensome. H.R. 3700 would also expand the USDA’s Section 502 Guaranteed Rural Housing Loan Program for single families by delegating loan-approval authority to certain participating lenders. FHA and VA loan programs already ...


February 12, 2016 - Inside FHA/VA Lending

Ranking House, Senate Democrats Seek Data on Distressed Asset Sale

Rep. Elijah Cummings, D-MD, ranking member of the House Committee on Oversight and Government Reform, and Sen. Sherrod Brown, D-OH, ranking member of the Senate Committee on Banking, Housing and Urban Affairs, earlier this month expressed concern about the sale of nonperforming loans to private investors without sufficient protections for homeowners and neighborhoods. Both lawmakers fear that FHA may not be providing enough incentives to servicers to modify ailing mortgages and that certain investors may be more interested in foreclosure than a cure. The influx of private investors has crowded out first-time homebuyers and raised concerns about the long-term effects of investor-owned homes in communities where foreclosures run high. In a joint letter, the two lawmakers sought information from the Department of Housing and Urban Development about ...


February 12, 2016 - Inside FHA/VA Lending

Proposed Federal Budget Projects $9.1 Billion in Profits for MMIF

The FHA Mutual Mortgage Insurance Fund is projected to generate $9.1 billion in profits in FY 2017 but officials say they will not be reducing mortgage insurance premiums any time soon. Released this week, the White House’s proposed budget projects FHA will insure $204 billion in new forward, single-family mortgages with a negative credit subsidy of 4.42 percent for each loan, resulting in a projected profit of $9.1 billion. In fiscal 2016, the program is expected to generate $7.7 billion in profits. Separately, for the Home Equity Conversion Mortgage program, the proposed budget is projecting $18.5 billion in new reverse mortgage loans with a negative credit rate of 0.33 percent, netting $61 million in profits. During a budget briefing, Housing and Urban Development Secretary Julian Castro said there are no plans to change the current mortgage insurance premium. “We want to ensure our ...


February 12, 2016 - Inside FHA/VA Lending

FHA Total Originations Drop in 4Q, Volume Better Year-over-Year

FHA forward mortgage endorsements fell significantly in the fourth quarter of 2015 with a decline in purchase mortgages and an even bigger drop in refinance loans due to rising interest rates, according to an Inside FHA/VA Lending analysis of agency data. Total FHA production fell 22.2 percent from the third quarter to $58.1 billion in the fourth quarter, spurred by steep declines in purchase originations (down 21.5 percent) and refis (30.0 percent). Fixed and adjustable-rate mortgages also saw their volumes drop by 22.1 percent and 30.2 percent, respectively, during the same period. The percentage of conventional loans that refinanced into FHA loans decreased slightly. FHA baseline lending (loans below $417,000) also declined by 22.0 percent quarter-to-quarter, as did FHA conforming jumbos (loan amounts up to the statutory high-cost loan limit), which saw volume drop 24.4 percent in the fourth quarter. FHA jumbos exceeding $625,500 did not escape the carnage as production fell ...


February 12, 2016 - IMFnews

What We’re Hearing: A 2.50 Percent FRM? / Hayman Out of PennyMac / Manny Friedman Losing the Love for PHH? / Sick of Hearing About Quicken’s ‘Rocket’ Mortgage? / CFPB Ready to Give Secondary Market Relief on TRID?

Meanwhile, EJF Capital, the private equity firm headed by Manny Friedman, has dumped a large chunk of its stake in PHH...


February 12, 2016 - IMFnews

Falling Rates Make MSR Sales Problematic – for Now

Declining interest rates are making some bidders think long and hard about MSR pricing...


February 11, 2016 - Inside Mortgage Finance

MBA, NAR Urge the VA to Implement Policy Changes to Make the VA Loan Guaranty Program Better for Veterans

The mortgage banking and real estate industries this week called on the Department of Veterans Affairs to adopt policy changes to improve the VA Home Loan Guaranty program. In a hearing week before the House Committee on Veterans Affairs, Subcommittee on Economic Opportunity, the Mortgage Bankers Association and the National Association of Realtors offered several changes that could further enhance the program. Testifying on behalf of the MBA, James Danis II, president of the Residential Mortgage Corp., urged...


February 11, 2016 - Inside Mortgage Finance

DOJ, State AGs Continue to Expand $25 Billion Servicing Settlement Reached in 2012, HSBC Latest to Settle

HSBC North America Holdings agreed to a $470.0 million settlement late last week with the Department of Justice, 49 state attorneys general and other regulators. The settlement is similar to the $25 billion settlement five big banks agreed to in 2012 and suggests that regulators aren’t finished focusing on servicing issues that occurred during the financial crisis. “The agreement is part of our ongoing effort to address root causes of the financial crisis,” said Benjamin Mizer, a principal deputy assistant attorney general and head of the Justice Department’s Civil Division. The HSBC settlement includes...


February 11, 2016 - Inside Mortgage Finance

Servicers Seek More Relief From Telephone Consumer Protection Act Despite Partial Fix by Congress

A recent amendment by Congress to the Telephone Consumer Protection Act was helpful for mortgage servicers but further action is necessary, according to industry participants. Servicers continue to raise concerns about the TCPA due to an order issued by the Federal Communications Commission in June. The order placed restrictions on auto-dialed calls to cell phones, subjecting servicers and others to penalties of $500 per call with no cap on statutory damages. The TCPA allows...


February 11, 2016 - Inside Mortgage Finance

Blackstone Expands Reach Into Mortgage Industry Through Purchase of Servicing Brokerage Firm IMA

The Blackstone Group this week continued its expanding reach into the mortgage industry, agreeing to buy – through an affiliate – Interactive Mortgage Advisors, Denver, one of the busiest sellers of mortgage servicing rights in the nation. No purchase price was revealed. IMA is being sold through an “asset” transfer. Its trading desk affiliate, Spurs Capital, is not part of the transaction, though the two firms will maintain a working relationship. In the fourth quarter, IMA brokered...


February 11, 2016 - IMFnews

MountainView Selling $7.2B of MSRs, Prestwick Out with Large ‘Flow’ Deal

Rates are still falling, but MSR packages continue to hit the auction block...


February 11, 2016 - IMFnews

Two GOP Congressmen Voice Concerns Over Declining GSE Capital

The two GOP congressmen want the Treasury Department and FHFA to suggest steps they can take in the near term “to rectify the situation.”


February 10, 2016 - IMFnews

Short Takes: Everything’s Coming Up Blackstone / Odds Increase for an FHA Premium Cut? / Volatile Rates a GSE Problem? / U.S. Bank No Longer Facing Servicing Restrictions / Correction on Redwood Numbers

Falling rates are great for the mortgage industry, right? Yes and no...


February 10, 2016 - IMFnews

Proposed FY 2017 U.S. Budget Estimates a $9.1 Billion Profit for FHA

Now, for the obvious question: With greater profits coming, will HUD allow FHA to cut premiums?


February 10, 2016 - IMFnews

With Blackstone’s Blessing, Incenter Agrees to Buy Servicing Broker Interactive Mortgage Advisors

In the fourth quarter, IMA sold $30 billion of mortgage servicing rights for its clients...


February 10, 2016 - IMFnews

The Final Tally on Mortgage Income at Banks: 4Q Not-so-Good; Full Year Better

Most of the decline came among the largest banks, with many regionals turning in stronger results in the fourth quarter…


February 9, 2016 - IMFnews

Short Takes: Margin Calls May Pose a Risk to Nonbanks? / Who Thought Rates Would Go This Low? / FHA Subject to ‘Black Swans’ / HUD, Philadelphia and the X-Files / FHA Condo Financing Relief on the Way?

In its new annual budget, the White House declares that the FHA mutual mortgage insurance fund is vulnerable to “Black Swans...”


February 9, 2016 - IMFnews

Shakeup at Ditech Financial: Patti Cook Out as President, David Schneider Is In

Shakeup at Ditech Financial: Patti Cook Out as President, David Schneider Is In


February 8, 2016 - Inside the CFPB

MBA Tells CFPB That FCC Rule Could Crimp Help to Borrowers

The Mortgage Bankers Association last week wrote the CFPB and other government regulators and agencies to warn that a rule adopted by the Federal Communications Commission last year could harm mortgage servicers when they try to provide early intervention with homeowners who are delinquent on their mortgages. The FCC’s order aims to bolster consumer protections against unwanted telephone calls and texts by, in part, restricting the ability of mortgage servicers, debt collectors and others to make autodialed or prerecorded phone calls without prior express consent of the person called. Violators can be subject to fines of $500 per phone call. But according to the MBA, the rule “threatens to expose mortgage servicers to significant and possibly unavoidable liability when they ...


February 8, 2016 - IMFnews

Fitch Issues MBS Warning on Home Prices in the San Francisco Area; 14 Percent Overvalued?

Other parts of the nation with the caution light on include Florida and Texas…


February 8, 2016 - IMFnews

A $470 Million Settlement for HSBC; Bank Continues to Pay for the Sins of Household Finance

During the subprime boom, HSBC owned Household Finance, a once-top ranked subprime lender and servicer that was later cited for lending and servicing violations.


February 8, 2016 - IMFnews

Fairholme Continues Push to Have FHFA Cough Up More PSPA Documents

In November, Judge Sweeney denied Fannie Mae’s motion to quash or invalidate a subpoena issued by the plaintiff’s counsel…


February 5, 2016 - Inside Mortgage Trends

Fraudulent Investors Seen as Performing Worse

Mortgages to borrowers who misrepresented their occupancy status perform much worse than loans to borrowers who truthfully identify themselves as investors, according to a new analysis by researchers at the Federal Reserve Bank of Philadelphia. The researchers examined purchase mortgages originated between 2005 and 2007. Loan-level data from McDash Analytics was matched with credit bureau data from Equifax. The researchers defined borrowers as having committed ...


February 5, 2016 - IMFnews

What We’re Hearing: CFPB Tries to Clear the Air on Construction Loans / A Friendly Holiday Letter From Richard? / CMC Supports the FR Move / A Tech Firm Enters the Mortgage Space / $1 Billion a Month in MSR Purchases

Paul Hindman, a consultant at Grid Financial Services, had this to stay about the deal: “The more important question is what other mortgage-related companies are on Computershare’s shopping list….”


February 5, 2016 - Inside MBS & ABS

Interest Rate Step-Ups on Modified Mortgages a Modest Credit Negative for RMBS, Moody’s Says

The expected increase in interest rates on some previously modified home mortgages is a slight credit negative for RMBS performance because these loans will re-default at a higher rate, according to analysts at Moody’s Investors Service. However, higher default rates will have only a modest effect on subprime and Alt A RMBS, because only a small percentage of outstanding subprime and Alt A mortgage loans are positioned to experience future rate step-ups. In their research, the analysts found that subprime and Alt A modified loans become delinquent more frequently after a rate step-up. “Modified subprime and Alt A loans with a demonstrated performance history of four to five years become delinquent at a significantly higher rate after a step-up in interest rates than do loans of a similar type and vintage that have not stepped up,” said the analysts in a new report released this week. According to their data, in July 2015, only 2 percent of the modified re-performing subprime loans became...


February 5, 2016 - Inside MBS & ABS

Morgan Stanley Settles RMBS Claims With FDIC, Claims Against Deutsche Bank Given Green Light

Legacy RMBS-related legal action continued this week in both Washington, DC, and in New York City as the fallout from the financial crisis continues. In the nation’s capital, Morgan Stanley agreed to a second settlement with the Federal Deposit Insurance Corp., this time for $62.95 million, to resolve RMBS-related claims stemming from the failure of three financial institutions in the wake of the collapse of the mortgage market. The institutions are...


February 5, 2016 - Inside MBS & ABS

Non-Agency Nonperforming Loan Deals Expected to Remain Strong, with Attractive Profits for Investors and Issuers

Securities backed by nonperforming mortgages, one of the biggest sources of volume currently in the non-agency MBS market, are expected to continue to look good for investors and issuers, even as the housing market recovers. This week, analysts at Bank of America Merrill Lynch recommended investing in senior tranches of non-agency MBS backed by nonperforming loans. “As things get bad for risk assets and we recommend positioning for further widening in risk premium, NPL senior tranches stand out...


February 5, 2016 - IMFnews

Surprise: Mortgage Hiring Inches Up in December

Among those hiring is Jordan Capital Finance, Chicago, which seeks to add new loan reps and a senior vice president of sales and business development...


February 4, 2016 - Inside Mortgage Finance

Rhode Island Supreme Court Allows Super Priority Lien to Extinguish First-Lien Mortgage, Paralleling Ruling in Nevada

A recent ruling by the Rhode Island Supreme Court has increased concerns that state courts will allow liens for homeowner associations and related entities to supersede first-lien mortgages. In late December, the R.I. Supreme Court ruled that a condo foreclosure sale conducted pursuant to the R.I. Condominium Act can extinguish a prior-recorded first mortgage if the lender fails to redeem the mortgage within 30 days of the foreclosure. The decision reversed a ruling by a lower court, which found that the borrower’s mortgage survived the condo association’s lien foreclosure sale. The Mortgage Bankers Association said...


February 4, 2016 - Inside Mortgage Finance

Servicing Market May Be Nearing $10 Trillion Mark Despite Further Declines in Top Tier of Servicers

Steady growth over the course of 2015 may have taken the long-suffering mortgage servicing market close to the $10 trillion mark at the end of the year, according to a new analysis and ranking by Inside Mortgage Finance. The top 50 companies at 2015 serviced a combined $7.326 trillion in home mortgages, a slight 0.3 percent increase from the end of the third quarter. If the rest of the industry followed their lead, the supply of servicing outstanding rose to $9.982 trillion by the end of December. Based on trends during the first nine months of 2015, as reported by the Federal Reserve, the supply of home loan debt outstanding may have trickled...[Includes one data table]


February 4, 2016 - Inside Mortgage Finance

Lower, Sustained Interest Rates Causing Headaches In the Bulk MSR Market; A Pullback by PE Firms?

The ongoing decline in interest rates is wreaking havoc on the sale of “bulk” mortgage servicing portfolios, causing investors to pull back on pricing, and sending some bidders to the exits, at least for a little while. Servicing advisors who play in the space confirmed to Inside Mortgage Finance that pricing isn’t what it used to be, and is off peaks seen a year ago when bids – in retrospect – were too aggressive and later resulted in write-downs. Mark Garland, president of MountainView Servicing Group, Denver, admitted...


February 4, 2016 - IMFnews

Short Takes: The Unforgiving Market for Mortgage Stocks / A Dividend of Almost 14 Percent / All Eyes on PHH Corp. / Midwest Lender Will Pay Borrower if Loan Doesn’t Close On Time / Past FHA ‘Sins,’ Before They Were Actually Sins

“When is enough, enough? Paying for past sins, sometimes before they were sins. I’m not speaking specifically about Wells Fargo, but in general.” – Marc Savitt, NAIHP president.


February 4, 2016 - IMFnews

A Half-Dozen ‘Serious’ Buyers of Mortgage Companies?

As one M&A advisor noted: "Value is in the eye of the beholder."


February 4, 2016 - IMFnews

Two Harbors Earns $72.1 Million in 4Q, Will Focus More on MSRs…

Two Harbors issued $2.00 billion of jumbo MBS 2015, adding that pricing improved for its deals throughout the year.


February 4, 2016 - IMFnews

More of the Same: House GOP Launches Salvos at GSEs, FHA, CFPB

As might be expected, the GOP is once again pushing to kill Fannie Mae and Freddie Mac...


February 4, 2016 - IMFnews

Residential Servicing Ready to Surpass the $10 Trillion Mark (Again)?

But there is this caveat: the steady growth of the top 50 servicers is in bold contrast to the industry’s top tier. Wells Fargo, Chase and Bank of America all reported shrinkage in their servicing businesses in 2015.


February 3, 2016 - IMFnews

Short Takes: The Bloom is Off the Rose on the CFPB’s ‘Clarifying Letter’ / Enter Alston & Bird / TRID Errors and 1Q Earnings / Hope for a Non-Agency Revival? / A New Detail on the RCS Deal

We also are hearing reports that TRID errors and closing delays definitely will be affecting first quarter 2016 earnings, at least for certain nonbanks…


February 3, 2016 - IMFnews

Nation’s Largest Lender Wells Fargo Settles with FHA for a Record $1.2 Billion

One observer called the $1.2 billion “chump change” for Wells.


February 3, 2016 - IMFnews

FHA Extends Due-and-Payable Notices on Problem HECM Loans

The extended deadline also provides mortgage companies an opportunity to pursue loss mitigation before initiating foreclosure against a customer.


February 3, 2016 - IMFnews

KBRA Director: ‘Top Four’ Banks Will Exit Residential Lending or ‘Down Size’

Will the last megabank left in the mortgage industry please turn out the lights...


February 2, 2016 - IMFnews

Short Takes: Selling Your Mortgage Firm? Be Prepared to Stick Around / What do Mortgage CEOs Earn Each Year? / The Falling Yield on the 10-Year / First Tennessee Settles with Uncle Sam / LenderLive Hires Ex-Impac Official

Earnings are high at most nonbank lenders these days, which makes them attractive to investors...


February 2, 2016 - IMFnews

TRID Suddenly Driving Mortgage M&A Activity?

Mortgage firms that are thinking about selling are 15 to 25 years old, said one M&A advisor...


February 1, 2016 - IMFnews

Short Takes: Equifax Includes FHA in its ‘Subprime’ Numbers / When is Subprime Not FHA? / It Appears PHH is Trading at a Discount / A Jumbo Loan for the Playboy Mansion? / President Trump Might Free the GSEs

Super-jumbo lenders take note: Hugh Hefner’s Playboy mansion is now officially for sale.


February 1, 2016 - IMFnews

Wells Fargo Files 13G on Ocwen Ownership, but It’s Not What You Think

Although Wells does not own the shares per se, it shows that some of the bank’s wealthier clients are speculating in Ocwen’s stock.


February 1, 2016 - IMFnews

FBR Drops Coverage of PHH, Fannie and Freddie Too; No Earnings Date for PHH Yet

In the announcement on dropping coverage, FBR quoted PHH management as saying “organic growth is hard to come by, strategic initiatives are taking longer to achieve, and prepayment speeds on the company’s MSR are still elevated…”


February 1, 2016 - IMFnews

Cenlar Ordered to Pay Borrower More than $200,000 for Causing ‘Emotional Distress’ after ‘Outrageous Conduct’

The subservicer started charging the borrower various attorney fees after completing the modification and didn’t respond to the mortgagor’s questions about those fees in a timely matter...


February 1, 2016 - IMFnews

Consumers Complaining a Lot Less About Mortgages. What’s Up With That?

Kvetching about mortgage servicing was down sharply too, off 23.1 percent compared with the third quarter.


February 1, 2016 - IMFnews

Slow Growth for Ginnie Mae Servicing in 2015, Lower Delinquencies

However, the VA market grew more than the FHA market last year, up 13.5 percent from the end of 2014…


January 29, 2016 - Inside FHA/VA Lending

Around the Industry


January 29, 2016 - Inside FHA/VA Lending

FHA Extends Due-and-Payable Notifications for Problem HECMs

The FHA has given lenders and servicers an additional extension through April 17, 2016, to submit due-and-payable notices when Home Equity Conversion Mortgage borrowers fall behind on their property tax or insurance payments. The extended deadline also provides FHA lenders and servicers an opportunity to pursue loss mitigation before initiating foreclosureThe latest deadline extension was the second such extension. In April 2015, the FHA announced a policy change providing HECM lenders and servicers an additional 60 days in which to initiate foreclosure proceedings against any troubled HECM borrower with a case number issued prior to Aug. 4, 2014, with a non-borrowing spouse. Lenders and servicers are required to comply with reasonable-diligence timeframes for such HECMs. Debenture interest will not be curtailed during this period. The April policy allows mortgagees full discretion as to when to use the extension.


Poll

A lot has been written lately regarding loan closing delays tied to the new TRID rule. What’s been the average delay at your lending shop, if at all? (Report in business days, not calendar.)

TRID has caused no delays whatsoever because we were prepared.

30%

1 to 4 days.

27%

5 to 10 days.

13%

11 to 15 days. It’s been a nightmare.

11%

We’re too embarrassed to tell you.

20%

Housing Pulse