Mortgage Servicers

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

May 5, 2016 - Inside Mortgage Finance

Nonbank Servicers Increase HAMP Share, Prompting More Calls for Greater Regulation

The rising role of nonbanks in the Home Affordable Modification Program along with a perceived lack of oversight has a HAMP watchdog calling for greater regulation of nonbank servicers. Nonbank servicers currently handle the majority of loans in HAMP, a shift from the early years of the federal program when the majority of mortgages were serviced by large banks. In a report released last week, the Special Inspector General for the Troubled Asset Relief Program noted...

May 5, 2016 - Inside Mortgage Finance

Share Prices of Several Top-Ranked Lenders Are in the Tank, Which Bodes Poorly for the Mortgage IPO Market

When it comes to stock price performance, it’s been an ugly year so far in 2016 for most of the nation’s publicly traded nonbanks, especially if their names happen to be Nationstar Mortgage, Ocwen Financial, PHH Corp. and Walter Investment Management Corp. And you might as well throw Stonegate Mortgage into that club as well. According to figures compiled by Inside Mortgage Finance, these five firms have seen declines in their stock prices – as measured against their highs for the past year – ranging from 52.3 percent (Nationstar) to 82.1 percent (Ocwen). Two other nonbanks whose share prices haven’t suffered as much are...[Includes one data table]

May 5, 2016 - Inside Mortgage Finance

Second-Tier Servicers and Nonbanks Continue Claiming Bigger Slice of Mortgage Servicing Market

Although several high-profile, publicly traded nonbank servicers are having a tough time turning a profit, non-depository institutions continued to build market share in mortgage servicing during the first quarter of 2016, a new Inside Mortgage Finance ranking reveals. On the whole, mortgage servicing is somewhat stagnant. The top 50 servicers as of the end of March managed a combined portfolio of $7.266 trillion, down very slightly from the previous quarter. Servicing tied to Fannie Mae, Freddie Mac and Ginnie Mae mortgage-backed securities managed a humble 0.2 percent gain in the first quarter, and the non-agency MBS market is still in the doldrums. It remains...[Includes two data tables]

May 5, 2016 - IMFnews

Short Takes: The New Mortgage Normal: Volatility / When Red Turns to Black / Citadel on a Hiring Spree / Stearns Gets a New CFO / Would Your Lending Shop Accept Private Flood Insurance?

Is the end near for servicing writedowns? Hedging marks?

May 5, 2016 - IMFnews

A Sale of PHH/Assets Looms Large After 1Q Loss, Declining Revenue and Falling Originations

Earlier this year, management signaled that the nonbank is considering its options...

May 5, 2016 - IMFnews

Two Harbors Takes $88.93 Million Net Loss in 1Q Due to MSR ‘Fair Value’ Changes

Two Harbors was the first – and thus far only – firm to issue a jumbo MBS with loans subject to the TRID mortgage disclosure rule.

May 5, 2016 - IMFnews

Fannie Mae’s Net Profit Fell 54 Percent After the GSE Took a $2.8 Billion Hit on Derivatives

G-fees – which have been rising in recent years – are ultimately paid by borrowers.

May 5, 2016 - IMFnews

Top-Five Servicers Continue to Pull Back; Receivables Drop Almost 8 Percent YoY

U.S. Bank was the only top-five servicer that has been growing its portfolio…

May 4, 2016 - IMFnews

Short Takes: The $55 Billion Subservicing Contract Mystery / Who Lost It, Anyone? / A Shakeout for P2P? / MSR Auctions Increase / Another Step Down for Ocwen’s Stock

Sometimes when a subservicer – especially a publicly traded one – snags a new client, the company publicizes the event...

May 4, 2016 - IMFnews

At Least Someone in the Mortgage Industry is Thinking About Climate Change: Freddie Mac

A past study commissioned by FEMA estimated that the areas designated as special flood areas will increase by 45 percent by the end of this century. In coastal areas, such designations would increase by 55 percent.

May 4, 2016 - IMFnews

Hammered by MSR Writedowns, Nationstar Posts $133 Million Loss for 1Q16

When are falling rates a bad thing? Answer: When you own a ton of mortgage servicing rights.

May 4, 2016 - IMFnews

Too Much Regulation? A 70 Percent Spike in Mortgage Exams at the CFPB Last Year; Nonbank Servicers Under Intense Scrutiny Compared to Peers

The exam outlook is even worse for nonbank mortgage servicers..

May 3, 2016 - IMFnews

Short Takes: Freddie CEO: It’s a Fact of Life / Industry Says Stop the Madness, Let the GSEs Build Capital / The Betting is that Watt Will Pull the Recap Lever / Mel’s Nightmare / Look for Some Type of PHH Sale

Some mortgage lobbyists predict Watt – a lawyer by training and a former Congressman – will pull the recap lever by the end of the Obama administration...

May 3, 2016 - IMFnews

Is the Mortgage M&A Market Dead in the Water? No More ‘Franchise’ Deals?

Larry Charbonneau, who runs a boutique advisory firm, said, “The number of willing sellers doesn’t meet the number of willing buyers...”

May 3, 2016 - IMFnews

Freddie Books $4.56 Billion Hedging Loss for 1Q. But Net Loss is Just $354 Million. No Assistance From Uncle Sam (At This Time)

For the past several weeks, speculation was rife that if the yield on the 10-year bond remained under 2.0 percent at March 31 Freddie might book a large hedging loss...

May 3, 2016 - IMFnews

Walter’s Stock Crushed After $173 Million Loss For 1Q; Inks Deal to Sell MSRs

Walter/Ditech originated $5.0 billion of new mortgages in 1Q16, down 10.7 percent from the previous quarter.

May 3, 2016 - IMFnews

TRID Architect: The CFPB Was Caught Flat-Footed by the Rule

Attorney Richard Horn, who helped write the TRID rule, blamed the CFPB, in part...

May 3, 2016 - IMFnews

Banks Report Modest Improvement in Mortgage-Banking Income for 1Q16

What some bank-watchers may not realize: Most depositories do not factor in personnel and other key expenses when calculating mortgage-banking income…

May 2, 2016 - Inside the CFPB

CFPB Solicits Comment on Sample Periodic Statements in Bankruptcy

The CFPB recently reopened the public comment period on whether mortgage servicers should be required to provide periodic statements for borrowers who have filed for bankruptcy. Specifically, the bureau is seeking public input on the consumer testing it did on its proposed sample periodic statement forms. Back in January 2013, the bureau issued its two mortgage servicing final rules. The agency clarified and revised those rules during the summer and fall of 2013 in two packages of amendments. Then in October 2013, the CFPB clarified compliance requirements in relation to successors in interest, early intervention requirements, bankruptcy law, and the Fair Debt Collection Practices Act (FDCPA), through an interim final rule (IFR) and a contemporaneous compliance bulletin. Among other things,...

May 2, 2016 - Inside the CFPB

Struggling Homeowners Still Have Servicing Issues, Bureau Says

The CFPB’s latest monthly consumer complaint report finds that borrowers struggling to keep up with their mortgages are still having problems with their mortgage servicers. “Today’s report shows that consumers are still running into too many dead ends and obstacles in resolving issues with their mortgage servicer,” said CFPB Director Richard Cordray. “The bureau will continue to press to make sure that people can get the right information and the timely help they need.” Among the issues the bureau identified, 51 percent of complaints involved problems borrowers faced when they had difficulty making payments. “Consumers complained of prolonged loss mitigation review processes in which the same documentation was repeatedly requested by their servicer,” said the CFPB. Homeowners also said they ...

May 2, 2016 - Inside the CFPB

Mortgage-Related Exams Rose 70 Percent Last Year, CFPB Reveals

It should come as no surprise to mortgage originators and servicers that the CFPB has significantly ramped up its examination activity of their operations over the last year. Data provided exclusively to Inside the CFPB from the bureau per a Freedom of Information Act request reveal there was a 70 percent increase in mortgage-related exams in 2015 from the prior year. As the accompanying chart illustrates, nonbanks have been having an even more active degree of scrutiny from the bureau than have depository institutions. Nonbank originators have seen an 85.7 percent increase in exam activity year over year, versus depositories, which have seen a rise of “only” 42.9 percent during that period. And it is even worse for nonbank servicers. ...

May 2, 2016 - IMFnews

Value-Oriented Kingstown Hedge Fund Starts to Trim Investment in Ocwen

Kingstown's big bet on Ocwen Financial is looking shaky these days...

May 2, 2016 - IMFnews

‘Middle Tier’ Servicers Keep Gaining GSE Market Share; The Big Boys Give Up?

As a group, the 45 companies that ranked sixth through 50th had a combined portfolio of $1.668 trillion, equal to 37.5 percent of the market.

May 2, 2016 - IMFnews

Bulk Servicing Transfers Take it on the Chin in 1Q16

An estimated $24.52 billion of GSE loans were delivered into MBS during 1Q16 with the servicing rights being taken over by a servicer not affiliated with the loan seller.

April 29, 2016 - Inside Mortgage Trends

Moody’s Raises Concerns about Nonbank Servicers

The funding models used by prominent nonbank servicers subject the firms to significant risks, according to Moody’s Investors Service, which predicted that the companies’ profitability will improve only marginally in 2016. The Moody’s analysis focused on Nationstar Mortgage, Ocwen Financial and Walter Investment Management. “All three nonbank servicers’ reliance on confidence-sensitive, short-term funding heightens their liquidity and refinancing risk,” said Warren Kornfeld ...

April 29, 2016 - Inside Mortgage Trends

MSR Investors Show More Interest in Hedging

An increasing number of financial institutions with a vested interest in mortgage servicing rights are showing a renewed interest in hedging against declining interest rates – something you might think they would already be doing. “You’d be surprised at who’s not hedging,” said Austin Tilghman, senior vice president of United Capital Markets, Denver. “Some mid-sized nonbanks just don’t get it.” Tilghman knows quite a bit about firms – banks included – that don’t ...

April 29, 2016 - Inside Mortgage Trends

Bulk Servicing Transfers Slow in 1Q16

Declining interest rates introduced considerable uncertainty into the valuation of mortgage servicing rights during the first quarter of 2016, leading to a decline in bulk transfers of agency MSR, according to a new Inside Mortgage Trends analysis. Bulk sales of Fannie Mae, Freddie Mac and Ginnie Mae servicing rights totaled just $36.16 billion during the first three months of this year, a 37.2 percent drop from the fourth quarter of 2015. That was down ... [Includes one data chart]

April 29, 2016 - IMFnews

What We’re Hearing: When in Doubt, Copy the FHA / A Long List of Suspects / Was the TRID Mess Overblown? / Freddie is Safe / Bulk MSR Deals from IMA, MVSG / Arch MI Shines / MBA Backs Mortgage Broker Marc Savitt / Bill and Joe’s Excellent Salary Adventure

Was the TRID mess overblown? Tell that to all the mortgage firms that lost money on deals...

April 29, 2016 - IMFnews

BofA, JPMorgan Chase Differ on Loans Not Sold to the GSEs

Chase continues to retain large amounts of conforming mortgages in portfolio...

April 29, 2016 - IMFnews

Impac Bucks the Trend and Increases Lending in 1Q, Expects More Growth; Earnings Marred by ‘Adjustments’

Impac's residential servicing portfolio increased by 45 percent on a sequential basis to an unpaid principal balance of $5.2 billion.

April 29, 2016 - Inside MBS & ABS

FASB Proposes Technical Corrections, Tweaks to GAAP, Changes Affect MSRs, FHA and VA Loans

The Financial Accounting Standards Board has proposed technical corrections and changes to its codified accounting handbook for private companies, including revisions to guidance relating to FHA and VA loans as well as transfers and servicing of financial assets. The proposed updates respond to suggestions by stakeholders and affect a wide variety of topics in the Accounting Standards Codification, which was established in September 2009 as a comprehensive source of authoritative generally accepted accounting principles used by the private sector. Among other things, a proposed amendment to Subtopic 860-20, Transfers and Servicing – Sales of Financial Assets would add...

April 29, 2016 - Inside MBS & ABS

Fannie to Launch MBS Backed by Re-performing Mortgages, Enhances Loan-Level Disclosures

Fannie Mae revealed plans this week to securitize re-performing loans held on its balance sheet to manage its risk and reduce its portfolio. Loans that have been modified and are now performing, coupled with loans that have become current without the assistance of a modification program, will be included in the group. “Over the long run, these securitizations can benefit...

April 28, 2016 - IMFnews

Short Takes: Ocwen’s Potential India Problem / Will Trump Penalize Servicers for Offshoring? / Altisource and Ocwen, Connected at the Hip / Bill Would Let GSEs Retain Capital / Spurs Capital Out on Its Own

Will President Trump (if elected) tax mortgage servicers that use offshore workers?

April 28, 2016 - Inside Mortgage Finance

New York Supreme Court Reverses Ruling in Foreclosure Case, Endorsing Lenders’ Use of Electronic Note Signings

The New York State Supreme Court recently reversed a ruling in a foreclosure case, providing a favorable decision for lenders and servicers. New York Community Bank v. Daphne McClendon involved a foreclosure that was initiated in 2012. The mortgage in question was originated in 2008 by AmTrust Bank for $544,000. The note accompanying the mortgage was signed by electronic signature. The borrower challenged...

April 28, 2016 - Inside Mortgage Finance

Delinquency Rates Continue to Decline though Long Foreclosure Timelines Persist for Pre-Crisis Mortgages

The performance of mortgages originated in recent years remains strong, pushing down delinquency rates across loan types. However, liquidation timelines for certain loans have hit new highs recently as servicers continue to work on foreclosing mortgages that went into default years ago. As of the end of March, the overall delinquency rate on mortgages declined to 4.08 percent, according to Black Knight Financial Services. The delinquency rate declined by 12.4 percent compared with March 2015 and is at its lowest point since March 2007. The foreclosure pre-sale inventory rate was...

April 28, 2016 - Inside Mortgage Finance

Struggling Homeowners Continue to Face Problems With Their Mortgage Servicers, CFPB Report Says

The Consumer Financial Protection Bureau’s latest monthly report on consumer complaints finds that borrowers who are having a hard time staying current on their mortgages are still having problems with their servicers. The bureau said 51 percent of gripes involved problems homeowners faced when they were unable to make their mortgage payments. Consumers continued...

April 28, 2016 - Inside Mortgage Finance

Thanks to Rising Loan Originations, Mortgage M&A Deals Hit the Skids; No More ‘Franchise’ Deals?

Thanks to rising loan applications and a stronger-than-anticipated start to the second quarter, merger and acquisition activity in the mortgage industry is at muted levels these days, according to investment banking officials. In other words, lenders will continue to “make hay while the sun shines,” believing that current profit margins are just too good right now to consider selling out. It was originally thought...

April 28, 2016 - IMFnews

More Bad News for Ocwen: No Word on When MSR Purchases Can Commence; Lending Falls

The publicly traded servicer/originator took in $330.7 million in revenue, a 35.2 percent decline from 1Q15. Its origination revenue was a meager $23.2 million…

April 28, 2016 - IMFnews

Delinquencies Continue to Fall but Foreclosure Timelines Hit New Highs

Molly Boesel, a senior economist at CoreLogic, noted that in judicial states, servicers must provide evidence of delinquency to the courts in order to move a borrower into foreclosure.

April 27, 2016 - IMFnews

Another Earnings Bloodbath for Ocwen; $111 Million Loss for 1Q16; Revenue Plummets; Stock Creamed in After-Hours Trading

In after-hours trading Wednesday, its share price was down 20 percent to $2.25.

April 27, 2016 - IMFnews

States Continue to Weigh Regulation of Mortgage Servicers

State regulators have been particularly concerned about growth in recent years by nonbank servicers such as Ocwen Financial, the largest subprime servicer. Ocwen, of course, is now shrinking.

April 27, 2016 - IMFnews

CFPB Cites ‘Prolonged’ Loss Mitigation Process by Servicers

Consumers said they received conflicting and confusing foreclosure notifications during the loss mitigation review process...

April 26, 2016 - IMFnews

Declining Rates Hurt MSR Values in 1Q16; 58 BPs for BofA?

A spokesman for BofA declined to provide any color on the mark, but provided a link to past financial filings where the bank talks about its hedging activities which are based on “model and other cash flow” assumptions.

April 25, 2016 - IMFnews

Short Takes: Delinquencies Decline / Comment Deadline for Controversial Survey / New STACR Deal / Assurant Fills in on Flood Insurance

The delinquency rate declined by 8.4 percent in March compared with February and was down 12.4 percent on an annual basis.

April 25, 2016 - IMFnews

Growth in Servicing VA Mortgages Outpaces FHA; Nonbanks Take More Share

The nonbank share of the market for servicing mortgages in Gnnie Mae MBS increased from 35.05 percent at the end of the first quarter of 2015 to 46.73 percent at the end of the first quarter of 2016.

April 22, 2016 - Inside FHA/VA Lending

Annual MIP Cut Helped Spur FHA Streamline Refi Activity in 2015

FHA’s Streamline Refinance program went through an erratic pace in 2015 as business exploded in the second quarter and declined over the second half of the year. FHA lenders closed 2015 with $67.5 billion in total streamline refis, a 252.4 percent improvement over volume in 2014. Production fell 30.0 percent in the fourth quarter from the prior quarter. The second-quarter spike – which caused streamline refi volume to jump from $12.1 billion in the first quarter to $25.0 billion in the second quarter – was fueled apparently by FHA’s reduction of the annual mortgage insurance premium. In January 2015, the FHA cut its MIPs on 30-year loans, making it less expensive to carry an FHA home. Under the revised MIP schedule, a 30-year FHA streamline refi with a loan-to-value ratio over 95 percent is charged an annual MIP of 0.85 percent. For a 30-year loan under 95 percent LTV, the annual MIP is ... [ 1 chart ]

April 22, 2016 - Inside Nonconforming Markets

States Continue to Weigh Regulation of Servicers

More than a year after state regulators proposed prudential standards for nonbank servicers, there’s no specific timeframe for releasing final standards. Officials at the Conference of State Bank Supervisors note that they are hoping for a coordinated approach with federal entities to regulate nonbank servicers. In March 2015, the American Association of Residential Mortgage Regulators and CSBS proposed standards for nonbank servicers. The proposal included baseline ...

April 22, 2016 - IMFnews

What We’re Hearing: Are Mortgage Loan Officers Overpaid? / Why the Mortgage Process is Complicated / Which is a Better Investment: Spending Money on LOs or Programmers? / A New Call Center on the Way? / Nationstar Compared to Ocwen and Walter

Then again, I’ve talked to recruiters who believe that good LOs are worth every nickel as long as they bring in the business.

April 22, 2016 - Inside MBS & ABS

Nation’s Largest MBS Investing REIT About to Expand Into MSR Market With Purchase of Pingora

Pingora Asset Management, one of the largest investors in “flow” mortgage servicing rights arrangements, is about to become the property of the nation’s largest real estate investment trust focused on the MBS market, Annaly Capital Management, New York. The purchase of Pingora’s parent, Hatteras Financial, Winston-Salem, NC – a deal valued at $1.5 billion – was unveiled last week, but one important facet regarding Hatteras garnered little in the way of press attention: that it just happens to own Pingora, which at last check laid claim to roughly $76 billion in MSR assets. However, not all of the servicing rights will become...

April 22, 2016 - Inside MBS & ABS

Agency MBS Trading Hits Low for the Year; Is Liquidity an Issue or Is This the ‘New Normal’?

The average daily trading volume in agency MBS fell to $189.4 billion in March, the lowest reading of the year, and a sign that liquidity may still be an issue, depending on which seat you’re in. According to figures compiled by the Securities Industry and Financial Markets Association, the trading numbers for 2016, so far, haven’t exactly lit the world on fire. In January and February, the readings were $195.1 billion and $201.4 billion, respectively. Last year, the best reading was...


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