Mortgage Servicers

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

April 24, 2014 - Inside Mortgage Finance

Customer Service Improves, But Servicer Costs Also Go Up as Firms Comply with CFPB’s Servicing Rules

The servicing rules implemented by the Consumer Financial Protection Bureau at the beginning of this year appear to have resulted in improvements to customer service along with increased costs for servicers, according to industry analysts. “Most servicers have adapted their operations to make the customer experience a key focus of their servicing operations,” according to analysts at Standard & Poor’s. When reviewing servicers, S&P said...


April 24, 2014 - Inside Mortgage Finance

Industry Grows Weary of MSR Snafus With Regulators, Wants Firm Policies and Procedures From FHFA, HUD

Two large acquisitions of mortgage servicing rights have been put on hold by regulators at the Federal Housing Finance Agency and Ginnie Mae, causing consternation in the secondary market. Moreover, according to trade group officials and advisors in the space, a deal needs to be struck between regulators and the industry that spells out the rules of the road when it comes to transferring MSRs from banks to their ultimate destination at nonbanks that are hungry for both product and market share. “We need an environment where servicing can be transferred...


April 24, 2014 - IMFnews

Altisource Plans to Continue to Lean on Ocwen in Face of Scrutiny from NY DFS

However, he suggested that Altisource is reevaluating some of the pricing on its services. Some 6,705 properties were sold via Hubzu in the first quarter of 2014.


April 24, 2014 - IMFnews

Short Takes: FHA Delinquencies Approaching an All-Time Low? / Flagstar’s IO Ticking Time Bomb / More MSR Deals from Phoenix, IMA and MountainView / No to Johnson-Crapo / Promotion for Wingspan Official

So, what does this mean for the industry? Answer: That the Mortgage Mutual Insurance Fund likely will return to health even faster and that maybe there’s room for FHA to cut premiums.


April 24, 2014 - IMFnews

Regulators May Favor Smaller Legacy MSR Sales

He cited one example where a $40 billion MSR package can be sold to one buyer that agrees to board the servicing files in increments of say $5 billion a month.


April 23, 2014 - IMFnews

Pingora’s MSR Investments Top $13 Billion

Company Chief Executive Michael Lau noted that Pingora is taking in roughly $2.5 billion a month through “flow” arrangements.


April 22, 2014 - IMFnews

Short Takes: Ethos To Fund Loans in Colorado / Lawsky Wonders Aloud On Why Ocwen Does Not Love NY Realtors / Jumbo MBS Bust This Year? / Garrett Warns on CFPB / FHFA To Collect More Borrower Info

The FHFA shortly will begin to collect additional, more specific and personal information on borrowers and loans as part of the National Mortgage Database project the agency launched with the Consumer Financial Protection Bureau.


April 22, 2014 - IMFnews

Servicing Deal Makers Say MSR Market is Not Frozen

However, a new research report from Sterne Agee notes: “We see the DFS as the primary log jam on the servicing transfer front.”


April 22, 2014 - IMFnews

Ocwen Investors Getting Concerned About Latest Lawsky Probe?

Some stakeholders said they called the firm’s investor relations department about the latest probe and were told the firm would be saying more about the matter when it reports first quarter earnings.


April 21, 2014 - IMFnews

Short Takes: CFPB Releases Guide to RESPA and TILA Disclosure Forms/Fannie Forecasts Accelerated Economic Growth in 2Q 2014/FHFA 2014 Scorecard ‘Soon’/Congress Remains in Recess This Week

ICYMI: Late last week, the Consumer Financial Protection Bureau released its guide to completing its integrated disclosure forms under the Real Estate Settlement Procedures Act and the Truth in Lending Act.


April 21, 2014 - IMFnews

Big Banks Report Huge Decline in Mortgage Banking Income in 1Q14

Mortgage-banking income at nine major banks declined by 27.7 percent in the first quarter of 2014 compared with the previous quarter, according to an analysis by Inside Mortgage Trends.


April 18, 2014 - Inside The GSEs

FHFA/Chicago Settlement Calls for GSE Compliance, No Fee Payments

The Federal Housing Finance Agency and the city of Chicago have reached a face-saving settlement in a longstanding legal dispute over whether Fannie and Freddie, as entities under federal conservatorship, are subject to the city’s vacant-building ordinance. Under the terms of a settlement reached earlier this month but announced last week, the two GSEs will voluntarily register vacant properties with the city but won’t be subject to a $500 registration fee. The FHFA will also no longer seek to recover registration fees or penalties already paid to Chicago.


April 18, 2014 - Inside MBS & ABS

Eminent Domain Proponent Mortgage Resolution Partners Has Lost Two Top Officers; Is it Toast?

Two of the top officers have left Mortgage Resolution Partners, the company that rattled Wall Street by trying to convince hard-pressed local governments to use eminent domain to seize underwater mortgages. The latest to depart is John Vlahoplus, who held the title of chief strategy officer. Vlahoplus, who could not be reached for comment, has taken a position with Credit Suisse. The other, more crippling departure is that of Graham Williams, CEO of the San Francisco-based private equity firm. He told Inside MBS & ABS that he officially cut ties with the company at the end of March. Steven Gluckstern, who serves as chairman of MRP, took on the title of acting CEO. At press time, he could not be reached for comment. Under the MRP scheme, local governments would offer...


April 18, 2014 - IMFnews

Short Takes: Prediction on FHA Insurance Premiums / Nonbank Servicer Grows / Donovan to Talk Housing / Outlook for Interest Rates

The FHA's mortgage insurance premiums could be set to decline at the end of FY 2015.


April 18, 2014 - IMFnews

Erbey: Servicers Now Competing Based on Compliance, Not Price

Ocwen's Bill Erbey sees the positive in recent scrutiny of nonbank servicers.


April 17, 2014 - IMFnews

NY DFS Probe of Nonbank Servicers Has Frozen Servicing Sales

The investigation by the New York Department of Financial Services of nonbank servicers including Nationstar Mortgage and Ocwen Financial has put a halt to servicing sales.


April 17, 2014 - IMFnews

Short Takes: No Adverse Impact from State Servicing Laws / National MI Lives Up to Its Name / Assurant Acquires StreetLinks / Credit Score Trends

Market fundamentals appear to have blunted the expected impact of Homeowner Bill of Rights laws enacted by three states in 2013.


April 16, 2014 - IMFnews

SHORT TAKES: U.S. Bank's Originations Drop / Purchase-Mortgage Applications Remain Down / Servicing Up for Bid / CFPB Forum on Mortgage Closings / Foreclosure Rescue Scams

U.S. Bank's mortgage originations in the first quarter of 2014 declined by 71.2 percent compared with the first quarter of 2013.


April 15, 2014 - IMFnews

GSEs Will Comply with Chicago's Vacant Property Rule But Not Pay Under Settlement by FHFA

The FHFA and Chicago settled a legal battle that started in November 2011 regarding maintenance and fees for vacant properties.


April 15, 2014 - IMFnews

SHORT TAKES: Negative Outlook / Fannie to Assess Late Fees / Servicers Implement CFPB Rules / Crowdfunding Servicing Purchases / Johnson-Crapo Outlook

DBRS suggests it's likely that most of the U.S. population won't be able to qualify for a mortgage any time soon...


April 15, 2014 - IMFnews

Steve Cohen’s SAC Ups Stake in Walter Investment

Walter, through its affiliate Green Tree Loan Servicing, is a top 10 ranked servicer, according to figures compiled by Inside Mortgage Finance.


April 14, 2014 - IMFnews

SHORT TAKES: FCI Continues to Expand its Servicing Base / Wells Fargo and JPM Take a Rest on MSR Markups / Jumbo Expansion? / Mods and Foreclosures / FDIC Throws Cold Water on Consolidation Theory / New Office for Interlinc

The MBA said applications for purchase-mortgages with high loan balances have increased in recent months while applications for lower-balance mortgages has declined…


April 14, 2014 - IMFnews

FHFA Remains Mum on ‘Articulated Criteria’ For MSR Transfers

During a recent webinar on MSR strategies, industry attorney Larry Platt of K&L Gates said he knows of “certain sales that have been held up for quite some time.” He noted: “You really can’t get a handle on what the cause of it is.”


April 14, 2014 - IMFnews

Ocwen Hits Snarl on OneWest Servicing Deal

Fitch said OneWest found a new buyer for 12,000 mortgages in 39 non-agency MBS that didn’t receive consents as part of the planned transfer to Ocwen.


April 11, 2014 - Inside FHA Lending

Filing Deadline for Recertification Extended to June 9

The FHA has extended the filing deadline for lender recertification to June 9, 2014, to match the agency’s timeline for switching to the Lender Electronic Assessment Portal (LEAP). LEAP is a new system that will serve as a one-stop shop for all lender approval and recertifications. It replaces the current “Lender Approval” and “Cash Flow” web pages in FHA Connection as well as the current system lenders use to submit financial information as part of recertification. LEAP is scheduled to be fully operation this month, although consolidation of Title I and II lender identification numbers has already taken place on March 31. Last year, the FHA issued guidance extending the filing deadline for all lenders with a December 2013 fiscal year end. Although the guidance recommended that lenders be prepared to complete their recertification no later than May 31, it also stated that ...


April 11, 2014 - Inside FHA Lending

April 30: Last Day to Submit Master Agreement

Ginnie Mae will provide a one-month grace period to April 30, 2014, for issuers to complete the submission of their master agreement to the Master Agreement Management System (MAMS) within the agency’s enterprise portal. The deadline for submission is March 31, 2014. The master agreements must first be accepted by the MAMS before an issuer may request or receive a “Transfer of Issuer Responsibility.” Failure to comply with this requirement could adversely affect the issuer’s ability to obtain commitment authority and to issue new pools or receive pool transfers. Although many issuers have resubmitted their master agreements, some found it difficult to complete the process within the required timeframe, according to Ginnie Mae. Providing a one-month grace period would help issuers to complete their resubmission. Issuers that still experience ...


April 11, 2014 - Inside FHA Lending

GNMA Bars HECMs with Fixed-Rate Future Draws

Beginning June 1, 2014, securitizations backed by Home Equity Conversion Mortgages may not include HECM loans that provide for future draws at a fixed rate of interest. Specifically, Ginnie Mae warned that the potentially excessive risk associated with such HECM loans might be more than what the agency could handle in the event of an issuer default. The prohibition applies to fixed-rate HECM loans where the borrower has the option to select a payment plan that allows future advances against the principal limit. These loans give rise to the risk that such advances will become uneconomic should interest rates rise from when the loan is originated, according to Ginnie Mae. The impact of negative spreads between a fixed noted rate and future prevailing rates could be ...


April 11, 2014 - Inside FHA Lending

BofA, Nutter Agree to Resolve HECM Violations

Bank of America and James Nutter & Co. have agreed to indemnify the Department of Housing and Urban Development to resolve allegations that they failed to perform due diligence in underwriting Home Equity Conversion Mortgage loans. An audit of the HECM program by the HUD Office of Inspector General found that the financial institutions allowed 33 HECM borrowers to take out more than one loan, a violation of program requirements. The program requires borrowers to reside in the mortgaged residence as their principal residence. In addition, borrowers may not have more than one principal residence at the same time. In BofA’s case, one borrower obtained two HECM loans on properties she owned in Massachusetts and Florida, both of which she identified as her principal residence. The HUD OIG said there was sufficient information to alert BofA and the underwriter that ...


April 11, 2014 - Inside FHA Lending

FHA Rejects Industry Plea to Lower MIPs

FHA Commissioner Carol Galante quashed any industry hope of seeing mortgage insurance premiums lowered at this time, saying that while the Mutual Mortgage Insurance Fund has shown some improvement, full recovery is still far off. In remarks during the Mortgage Bankers Association’s National Advocacy Conference this week, Galante also defended a provision in the president’s FY 2015 budget proposal seeking statutory authority for the FHA to collect an administrative fee from lenders to help fund quality control improvements. Both issues are high up on the MBA’s lobbying priorities as members gathered in Washington, DC, this week to meet with lawmakers and their staff to discuss FHA and other key industry concerns. Galante said the Department of Housing and Urban Development is currently focused on strengthening the MMI Fund and expanding access to credit for all qualified borrowers. The FHA raised pricing five times from ...


April 11, 2014 - Inside Nonconforming Markets

Concerns About Nonbank Servicers’ Growth Persist

Undisclosed third parties rejected a small portion of Ocwen Financial’s planned acquisition of mortgage servicing rights from OneWest Bank, according to a report this week from Fitch Ratings. The lack of approval on Ocwen’s MSR purchase was just the latest hurdle faced by nonbank servicers with plans to grow. Last year, Ocwen announced it planned to acquire a significant portion of MSRs from IndyMac Mortgage Services, a division of OneWest. Fitch said the acquisition ...


April 11, 2014 - IMFnews

What We’re Hearing: Mel Watt Doing His Homework? / Coming Soon (Maybe) From FHFA: LLPA Relief / RIP: The First-Time Homebuyer / Blame Sandra Thompson? / Bank of America Loan Officers Getting Cherry-Picked / Ocwen Hangs Up on Borrower

FHFA Director Mel Watt may have something to say soon on the topic of Fannie Mae/Freddie Mac loan level price adjustments, commonly known as LLPAs. As for the GSE 'Scorecard'...


April 11, 2014 - IMFnews

Despite Passage in Committee, Mortgage Debt ‘Forgiveness’ Act Has Slim Chance

The EXPIRE Act also includes a provision to extend the mortgage insurance premium tax deduction. In a letter supporting the tax extensions to the committee, the Mortgage Bankers Association estimated that for a $200,000 home, homeowners would be able to deduct between $600 and $1,000 from their taxes.


April 11, 2014 - IMFnews

Nation’s Top Two Home Lenders Hammered by Huge Volume Declines in 1Q

But Wells also offers up disappointing news on its mortgage gain-on-sale results. Its GOS fell to 161 basis points in the first quarter compared to 177 bps in 4Q and 256 bps in 1Q13.


April 11, 2014 - IMFnews

Is the Market for Servicer Advances Facing Headwinds?

Bad news for Nationstar and Ocwen? S&P said downgrades on servicer-advance ABS are possible because the analysis that accompanied ratings on certain deals didn’t consider subordinated interest amounts as part of the ratable promise.


April 10, 2014 - Inside MBS & ABS

Issuance of Securities Tied to MSRs Expected to Increase as Nonbank Mortgage Servicers Grow

At the end of February, Ocwen Financial issued a $123.6 million security backed by mortgage-servicing rights on agency mortgages, the first of its kind. The security was attractive to investors as well as to nonbanks, with more transactions expected, according to the Urban Institute’s Housing Finance Policy Council. The transaction has a 14-year debt obligation and was secured by Ocwen-owned MSRs on mortgages with an unpaid principal balance of approximately $11.8 billion. Investors in Ocwen Asset Servicing Income Series 2014-1 receive a monthly payment of 21 basis points of the unpaid principal balance of the reference pool in the form of an interest-only strip, along with certain other payments. In a new analysis, the HFPC’s Laurie Goodman and Pamela Lee said...


April 10, 2014 - Inside MBS & ABS

Change to Rating Criteria for Servicer Advance ABS And Potential Downgrades Could Disrupt Issuance

Standard & Poor’s announced late last week that it placed 96 ratings from 20 servicer-advance ABS on watch for a potential downgrade and the rating service plans changes to its rating criteria for servicer-advance ABS. Industry analysts suggest that the actions could disrupt the market for servicer-advance ABS, as S&P has been the dominant rating service in the sector. S&P said downgrades on servicer-advance ABS are possible because the analysis that accompanied ratings on certain deals didn’t consider subordinated interest amounts as part of the ratable promise. “The CreditWatch placements reflect...


April 10, 2014 - Inside Mortgage Finance

Indicators Point to Historically Weak Origination Market in Early 2014, Potential Culling of Herd

Early indicators suggest that mortgage originations slumped by about 23 percent in the first quarter of 2014, a harbinger of tough times to come for companies that are running on fumes. According to a new Inside Mortgage Finance analysis of loan-level data in Fannie Mae and Freddie Mac first-quarter securitizations, primary market originations for the first three months of the year totaled about $235 billion. Unless the pace picks up, 2014 could fail to reach $1 trillion for the first time since 1998. Lender surveys, which are the major factor in Inside Mortgage Finance originations estimates, are underway. Weak origination volume is...


April 10, 2014 - IMFnews

Short Takes: More Meddling by FHFA in MSRs? / Will JPM’s Dimon Ever Love Mortgages Again? / PHH Finds a Way to Reduce Turnover / MI Looking Up / Homebuilder Expands License Base of MB Sub

Did the FHFA late last summer/early fall raise concerns regarding a certain nonbank servicer’s capital in regard to a huge portfolio of mortgage servicing rights that it had bought earlier in the year from a megabank?


April 10, 2014 - IMFnews

PHH Names New Principal Accounting Officer; Meanwhile Doubts Increase on Sale

PHH Mortgage has been on the auction block for at least two months. One called the sale “mission impossible.”


April 10, 2014 - IMFnews

MBA Calls for Big Basel MSR Changes; Wants Cap Raised to 50 % in Some Cases

Currently, MSRs can only account for 10 percent of Tier I capital, but MBA thinks it should be raised to at least 25 percent for banks, and 50 percent for thrifts and savings and loans.


April 9, 2014 - IMFnews

Short Takes: A Good Year for Lenders One, But… / Ocwen MSR Purchase Update / Ex-Provident Exec to Get Senior Post at Ethos / Citigroup’s Subprime Past / A Soggy Spring for Mortgage Applications

Will the Ocwen-Wells MSR deal ever get approved? In time, but...


April 9, 2014 - IMFnews

FHFA Pulls Out the Stop Sign on Servicing Sale to Non-Traditional Buyer

Since late last year, the FHFA has decreed that it must approve any GSE servicing sale of 25,000 loans or more, which translates into roughly $5 billion of product.


April 9, 2014 - IMFnews

If PHH Can’t Sell Its Mortgage Platform, Will It Initiate a Dividend Payment?

“A few groups have taken a walk through the offices in Cherry Hill,” said a source close to PHH. “People are starting to notice – and leave.”


April 8, 2014 - IMFnews

Short Takes: The (Mortgage) Empire Strikes Back! / And the GSE Joiners Are… / The Junior Preferred Shareholders, Where Are They Today? / Yet Another GSE Shareholder Advocacy Group / Come On, You Can Say It: We Like the Current System

Why doesn’t the MBA, NAHB and National Association of Realtors just come out and say what they really mean, which is this: Leave Fannie and Freddie alone, return them to their shareholders and they’ll never buy another ALT A or subprime mortgage again.


April 8, 2014 - IMFnews

Ex-CFPB Honcho’s Fenway Summer Merges with Start-Up Lender Ethos

The resulting lender, which will keep the Ethos name, plans to start originating qualified mortgages in the second quarter of 2014 and non-QMs by the end of the year.


April 7, 2014 - IMFnews

Short Takes: Ocwen Sees Payroll Costs Spike / Help Save the 30-Year FRM and GSE Shareholders Too! / Fairholme Wins Again / Delinquencies Fall, Again / Fannie Tweaks HomePath Program

Ocwen's stock has been floundering of late, but its payroll is headed north on a rocket.


April 7, 2014 - IMFnews

Ocwen Increases Maximum Bonus Amount for Executives; Will Pay for Their Move to VI

Meanwhile, Ocwen’s board recently increased the maximum bonus amount for senior level executives to $3 million per year from $2 million.


April 7, 2014 - IMFnews

1Q14 Origination Preview: Ugly; At Least Brokers Are Hiring

Mortgage banking is an ugly business right now, but lenders are hoping that the first quarter will prove to be the nadir and that better times are ahead.


April 4, 2014 - Inside The GSEs

OIG Slams FHFA’s Oversight of GSEs’ Pre-Foreclosure Reports

The Federal Housing Finance Agency’s oversight of Fannie Mae’s and Freddie Mac’s pre-foreclosure inspection process can and should be enhanced by strengthening quality assurance and controls, according to a new audit by the agency’s Office of the Inspector General. The FHFA-OIG audit found potential fraud in property inspection reports ordered by the two GSEs. Among the findings: the property inspection reports – which are used for foreclosures – contained inaccurate information that conflicted with corresponding photographs.


April 4, 2014 - Inside The GSEs

House Dems Seek GSE Jobless Moratorium via Bill, Regulation

Whether by legislation or by regulation, a group of House Democrats want Fannie Mae and Freddie Mac to give unemployed homeowners a break by issuing a foreclosure moratorium. Last month, Rep. Matt Cartwright, D-PA, filed H.R. 4255, the Stop Foreclosures Due to Congressional Dysfunction Act, which would require the Federal Housing Finance Agency to establish a six-month moratorium on GSE-guaranteed mortgages held by homeowners who have lost their emergency unemployment compensation “due to congressional inaction.” The bill requires that borrowers must have been in good standing prior to losing their unemployment benefits in order to be eligible for the temporary forbearance.


Poll

What do you think is the biggest hurdle to meeting the new QM standards in the CFPB’s ability-to-repay rule?

A debt-to-income (DTI) cap of 43%.

48%

A 3% cap on points and fees.

29%

An interest rate cap of the average prime offered rate (APOR) plus 1.5%.

23%

Housing Pulse