Mortgage Servicers

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

January 29, 2015 - Inside Mortgage Finance

Top 100 Mortgage Servicers: 3Q14

January 29, 2015 - Inside Mortgage Finance

Basel Capital Requirements Unlikely to Prompt Big Banks to Sell Servicing, According to Moody’s

Sales of mortgage servicing rights by big banks will continue to be driven by the desire to reduce the handling of delinquent mortgages – not by Basel III capital requirements, according to analysts at Moody’s Investors Service. Nonbank servicers that have grown in recent years often cite Basel capital requirements as a significant factor in bank sales of MSRs. Warren Kornfeld, a senior vice president at Moody’s, noted that Bank of America, Citigroup and JPMorgan Chase were active sellers of MSRs in recent years. “We believe the sales were primarily motivated by their desire to reduce credit-impaired servicing volume,” he said. Under Basel III, banks face...

January 29, 2015 - Inside Mortgage Finance

Recent Rate Plunge Creates a Quandary for MSR Sellers: Hang On or Sell? ‘Flow’ Prices Are Strong at Least

The recent dip in interest rates has sellers of mortgage servicing rights questioning whether they should sell into a market of weakening prices or hang on until values firm up. As always, the answer depends on what type of servicing rights a seller is looking to unload in a market where the yield on the benchmark 10-year Treasury is once again nearing its low for the year. With rates low on current production, prices are...

January 29, 2015 - IMFnews

Short Takes: CFPB Seeks to Expand Credit in Certain Areas / Will Banks Reemerge as MSR Buyers? / What’s Going On With Stonegate? / Fannie Goes Downtown / A New General Counsel for Genworth

Stonegate Mortgage saw its share price fall to a new 52-week low of $9.76 Thursday morning on no major news.

January 29, 2015 - IMFnews

Phoenix Capital Out with $600 Million Flow MSR Package

Two other servicing packages hit the market the past few days, including a seasoned $276 million Ginnie Mae portfolio from Interactive Mortgage Advisors.

January 29, 2015 - IMFnews

Fay Servicing Gets Contract With Altisource Residential. Meaning?

Roughly $1.5 billion of the $2 billion in mortgages Altisource Residential held at Sept. 30 are in some stage of foreclosure.

January 29, 2015 - IMFnews

Fitch: Ratings Not a Major Factor when Trying to Switch Servicers of Non-Agency MBS

More commonly, servicer event of default clauses are tied to the servicer’s financial condition...

January 28, 2015 - IMFnews

Friday Release of Seller/Servicer Eligibility Guidelines from FHFA Delayed?

It’s unclear what exactly will be addressed in these new standards, though capital requirements for nonbank servicers is said to be a key part of it.

January 28, 2015 - IMFnews

CFPB Tells Banks, Nonbanks to Maintain Confidentiality of Supervisory Info

In other words, the bureau is asserting the primacy of its regulatory authority over the legality of certain private contracts.

January 28, 2015 - IMFnews

Residential Production Down Slightly at EverBank, Revenue Falls

Total revenue at EverBank fell to $222.6 million in 4Q compared to $234 million in 3Q.

January 27, 2015 - IMFnews

Short Takes: Rep. Hensarling Cites ‘Fables’ Told by the Left / Some Background on the Affordable Housing Trust Funds / Did the Government Violate the Law Regarding the GSE Conservatorships?

"Contrary to the fable told by the left, the root cause of the financial crisis was not deregulation but dumb regulation," said House Financial Services Committee chairman Jeb Hensarling, R-TX.

January 27, 2015 - IMFnews

With Mortgage IPOs on Hold Sub Debt Issuance May Bloom

“Sub debt is a good way to grow your business without it being dilutive to your company,” said Bill Dallas, CEO and founder of Skyline Lending.

January 27, 2015 - IMFnews

Mortgage Complaints Drop Yet Again. What’s That All About?

Elsewhere, the latest figures from the CFPB show a big reduction in consumer belly-aching about loan modifications...

January 26, 2015 - Inside the CFPB

GOP, Industry Look to Clip CFPB Wings in New Congress, 2015

The reconstituted House Financial Services Committee recently adopted an oversight plan for the 114th Congress – and scrutiny of the CFPB remains part of the agenda of the Republican-controlled committee. “The committee will oversee the regulatory, supervisory, enforcement, and other activities of the CFPB, the effect of those activities on regulated entities and consumers, and the CFPB’s collaboration with other financial regulators,” said the plan document. “The committee will also examine the governance structure and funding mechanism of the CFPB.” When it comes to specific sectors of the financial services industry, the committee said it plans to closely review recent rulemakings by the CFPB and other agencies on a variety of mortgage-related issues. “The committee will monitor the coordination and implementation ...

January 26, 2015 - Inside the CFPB

Complaints About Mortgage Applications, Originations Plummet

Even though mortgage-related complaints to the CFPB fell 14.5 percent year over year and 16.1 percent percent quarter to quarter, gripes about the mortgage loan application and origination process dropped even further, a new analysis by Inside the CFPB shows. Consumer criticisms about their loan apps and the overall origination process fell 22.8 percent from 2013 to 2014. The fourth quarter drop-off was even better, down 28.0 percent from the third quarter. While those performances are positive on the surface, they may be indicative of larger trouble elsewhere: in the case of the U.S. mortgage market, the fall in complaints about loan apps and originations is most likely largely due to the continued slow-down ... [with exclusive chart]...

January 26, 2015 - IMFnews

Short Takes: Titan Says: Give Us Your Rejects / Ocwen Rising / UWM Rolls Out LOS Platform / DocMagic Keeps Software Developers Happy / Leon Loves Altisource?

Thanks to its settlement with California regulators, Ocwen's share price is on the rise. But for how long?

January 26, 2015 - IMFnews

Ocwen Fights Back, Blasts Latest Claims from Non-Agency MBS Investors as ‘Baseless’

Ocwen denied that there is any basis for a default under the trust agreements...

January 26, 2015 - IMFnews

Phoenix Selling $4.3 Billion of Agency and Ginnie Servicing Rights

Declining interest rates don't appear to have affected the servicing auction market much.

January 23, 2015 - IMFnews

Ocwen Settles With California DBO, Will Pay $2.5 Million; Stock Soars After Hours

As part of the settlement, the DBO will drop its effort to suspend Ocwen’s license in the state.

January 23, 2015 - Inside FHA Lending

GNMA to Launch Issuer Scorecard in the Spring

Ginnie Mae will soon introduce the third prong of a strategy to improve its oversight of participants in its mortgage-backed securities program – a performance scorecard for issuers – and monitoring of its risk. Essentially a “scorecard,” the Issuer Operational Performance Profile (IOPP) will enable issuers to better understand and comply with Ginnie Mae’s expectations. It also provides a way for issuers to measure and improve their performance and compare it to the performance of their peers. Final testing and training for IOPP began this winter, with deployment expected “in early 2015,” the agency said. Issuers will be scored monthly based on a series of metrics. Each issuer will be rated against its peers by applying a weighting algorithm and, in some cases, adjusting for certain control factors. Each issuer will receive two scores: one for operational management and ...

January 23, 2015 - Inside FHA Lending

HUD Clarifies Protections for HECM Spouses

The Department of Housing and Urban Development has made further clarifications to policy guidance related to the treatment of eligible and ineligible non-borrowing spouses of deceased Home Equity Conversion Mortgage borrowers. According to Mortgagee Letter 2015-02, FHA lenders must identify at application any current non-borrowing spouses and must determine whether they are eligible for protection against “due and payable” requirements that kick in upon the death of the HECM borrower. This protection is a provision in the HECM document requiring that full payment of the entire mortgage be deferred for as long as a non-borrowing spouse continues to meet all the requirements of the provision. Specifically, the eligible, non-borrowing spouse must establish, within 90 days from the death of the HECM borrower, legal ownership or other ongoing legal right to ...

January 23, 2015 - Inside FHA Lending

FHA Tweaks Rules for Doing Business with Agency

The FHA has proposed key changes to rules for 203(k) consultants, direct endorsement (DE) underwriters and nonprofit groups that do business with the agency. The changes are part of a draft section, “Doing Business with FHA – Other Participants,” which will be incorporated into the overall Single Family Policy handbook. The draft contains information regarding eligibility, approval and recertification requirements for 203(k) program consultants, direct endorsement (DE) underwriters and nonprofit groups. The FHA posted the draft versions of “Doing Business with FHA – Other Participants in FHA Transactions” and “Quality Control, Oversight and Compliance – Other Participants in FHA Transactions” on its SF Housing Policy Drafting Table for public review and comment. The draft consolidate various existing Department of Housing and Urban Development handbooks, mortgagee letters, housing notices and ...

January 23, 2015 - Inside FHA Lending

Low Rates, High Demand Power VA’s 3Q14 Surge

Production of loans with a VA guaranty was moderately strong in the third quarter of 2014, thanks to lower rates and increased demand for the no-downpayment loans, according to Inside FHA Lending’s analysis of the latest agency data. A 14.1 percent quarter-to-quarter surge helped the industry end last year’s first nine months with a total of $76.3 billion in VA loans, mostly purchase home mortgages taken out by a younger generation of war veterans. VA streamline refinancing also accounted for a substantial chunk of originations, 19.2 percent. Volume jumped from $19.5 billion in the first quarter of 2014 to $26.5 billion the following quarter. Lenders closed out the third quarter with $30.2 billion. Stanley Middleman, chief executive officer of Freedom Mortgage, said VA lending is on the upswing, driven by low interest rates. He thinks the VA home loan guaranty program has been ... [ 1 chart ]

January 23, 2015 - Inside FHA Lending

FHA Likely to Reclaim Share with Premium Cut

The half-percent annual premium reduction the FHA announced recently will likely enable the agency to reclaim the high loan-to-value segment of the mortgage market from Fannie Mae and Freddie Mac, according to analysts. Speaking with some originators that have been looking at the best way to securitize high LTV loans, Deustche Bank securities analysts said the lower FHA annual premium would put pressure on the government-sponsored enterprises to lower the cost of their guarantees. “The grapevine has anticipated for months that [g-fees] have little chance of going up and more chance of going down,” the analysts said. “But the specific risk triggered by the FHA move is that the cost of credit will now drop for high-LTV conventional borrowers.” Even before the FHA policy shift, private mortgage insurers have been pressuring the Federal Housing Finance Agency to ...

January 23, 2015 - IMFnews

What We’re Hearing: Ocwen’s New Headache: BlueMountain / But Will it Work? / The Nationstar MSR Mystery / Yes, Loan Applications are Booming / Whatever Happened to Jon Daurio’s Capital Raise?

Just because a notice of default is signaled, that doesn’t mean the trustee has to yank the servicing away from Ocwen.

January 23, 2015 - Inside MBS & ABS

Experts Shrug Off Rising Delinquencies on Subprime Auto Loans Resulting From Looser Underwriting

Issuers of auto ABS are loosening underwriting standards and delinquencies on subprime auto loans are increasing, but industry analysts suggest that there is little cause for concern. Performance remains much stronger than the delinquencies seen during the financial crisis and issuers are unlikely to loosen underwriting to the extent seen in the run-up to 2008. For independent finance companies, 60+ delinquencies increased by 13.7 percent in the past year, from 1.82 percent in the third quarter of 2013 to 2.07 percent in the third quarter of 2014, according to the latest data from Experian Automotive. Independent finance companies focus primarily on lending to subprime borrowers, and their delinquency trends outpaced any increase in delinquencies for other types of lenders that lend primarily to prime borrowers. Peter McNally, a vice president and senior analyst at Moody’s Investors Service, said...

January 23, 2015 - Inside MBS & ABS

Despite the Loss of Three Top Executives, Cerberus-Controlled FirstKey Aims to Grow

FirstKey Mortgage, which has big plans in the non-agency space that include lending outside the qualified mortgage box and securitization, late this week saw the departure of three of its top executives, including CEO Bruce Witherell. According to industry officials familiar with the situation, FirstKey’s parent company, Cerberus, was beginning to take more of an active role in how the lender/issuer was being operated, a situation that didn’t sit well with some senior executives at the nonbank, including Witherell. Witherell and FirstKey executives Randy Sidhu and David Essex have accepted...

January 22, 2015 - IMFnews

Short Takes: JPM Sold Servicing to Nationstar? / IMA Will Still Sell Distressed Product / Ocwen Quietly Peddling Servicing? / Head of Retail at Guaranteed Rate Walks / $7MM to Get Deals Rated? / FHA Update

Thomas Gamache, national director of retail sales for Guaranteed Rate, has left the company and accepted a position with Citizens Financial Group...

January 22, 2015 - Inside Mortgage Finance

With Mortgage IPOs on Hold, Subordinated Debt Issues and Other Instruments May Bloom

Investment banking firms that arrange subordinated debt offerings for mortgage originators are expecting a strong year in 2015, thanks in part to the dismal outlook for initial public offerings. “Sub debt is a good way to grow your business without it being dilutive to your company,” said Bill Dallas, CEO and founder of Skyline Lending, a lender that recently completed a $20 million deal with Ellington Financial, a publicly traded mortgage real estate investment trust. “It allows...

January 22, 2015 - Inside Mortgage Finance

CFPB’s Interest Rate Checker ‘No Substitute for Shopping,’ Bureau Rep Says as Fallout Continues

The Consumer Financial Protection Bureau this week countered mortgage-industry criticism about its recently launched interest-rate checker tool. “The rate checker is an educational tool and is not a substitute for shopping,” a spokesman for the bureau told Inside Mortgage Finance. “One of the findings of our survey was that consumers who said they were very familiar with available interest rates were almost twice as likely to shop, compared to those who were unfamiliar.” Further, before consumers make a final decision about a loan, they should compare...

January 22, 2015 - IMFnews

IMA Advises MSR Clients to Hold off on Bringing Deals to Market

Other investment bankers who work the MSR market said declining interest rates and the “Ocwen” effect are hurting values.

January 22, 2015 - IMFnews

Quicken Snatches Former CFPB Official Pete Carroll Away from Wells Fargo

Sources familiar with the situation said Carroll began spreading the word about his departure last week.

January 21, 2015 - IMFnews

Nationstar Closes on $8.5 Billion MSR Deal from ‘Top Four’ Servicer

Is Ocwen the seller of the MSRs?

January 21, 2015 - IMFnews

Short Takes: Leon Cooperman Feels the Altisource Pain / CFPB Mum on Fixing Lender-Paid Comp / Former S&P Chief Under Fire

Regarding Altisource, the phrase “catch a falling knife” comes to mind. Cooperman is the Chairman and CEO of Omega Advisors…

January 21, 2015 - IMFnews

Nonprime Lender Citadel Triples Production in 2014, May Do It Again

Roughly 5 percent of Citadel's production is retail with correspondent accounting for 7 percent. The balance entails table funding.

January 20, 2015 - IMFnews

After Stepping Down, Ocwen Founder Erbey Set to Reap at Least $1.2 Million in Cash

The separation agreement prohibits the mortgage industry veteran from competing with Ocwen for at least 24 months.

January 16, 2015 - IMFnews

The Megabank Mortgage Roundup: 4Q Reveals Some Up, Some Down

Two of the four, Chase and BofA, reported increased originations during the fourth quarter. At Chase, production was up 8.5 percent...

January 16, 2015 - Inside The GSEs

Fannie, Freddie Winding Down Their Servicing Advances?

It appears that Fannie Mae and Freddie Mac may be slowly backing away from making large servicing advance facilities to certain nonbank customers. In a recent filing with the Securities and Exchange Commission, Green Tree Servicing said it amended an existing facility it had with Barclays Bank, increasing the line to $1.2 billion from just $100 million. A subsidiary of Walter Investment Management, Green Tree then turned around and repaid Fannie Mae some $765 million on the outstanding balance of an existing advance facility. It’s unclear how large Fannie and Freddie are in the advance market, but one servicing advisor had this to say on the topic: “Fannie is the largest lender of servicer advances in the business simply through ...

January 16, 2015 - IMFnews

Altisource Defends Ties to Ocwen, Cuts Staff; Stock Soars

Altisource recently eliminated 800 employee positions and hundreds of contractors.

January 16, 2015 - IMFnews

What We’re Hearing: Nonbanks Almost Equal to Banks in GSE MBS / More Mortgage Trouble for Cerberus / Meddling by Cerberus? / Hope for Ocwen? / The Failed GSE Duopoly? / Investor Unite a Bust?

The Federal Housing Finance Agency will unveil nonbank capital guidelines for servicers by mid-year. Also on the docket: Changes to loan level price adjustments..

January 16, 2015 - Inside MBS & ABS

Ocwen Full Steam Ahead on MBS Clean-up Calls and Ginnie Buyouts? Looks That Way

Although Ocwen Financial is in regulatory hot water with California – a dicey proposition given the state’s importance to the mortgage industry – the nation’s fourth-largest servicer will continue with a strategy of non-agency MBS clean-up calls and Ginnie Mae buyouts. At least, that’s what company Executive Vice President and Chief Investment Officer John Britti told Inside MBS & ABS late this week. Britti confirmed continuance of the strategy, but declined to offer any new details or color. The big question, of course, is...

January 16, 2015 - IMFnews

CFPB Looking for Legal Conflicts to Enter

“The bureau welcomes and encourages suggestions of cases as candidates for amicus curiae participation,” said the letter, signed by Meredith Fuchs, general counsel of the CFPB.

January 16, 2015 - IMFnews

Lenders Preparing for a Refi Boom(let)? Looks That Way

At press time, the yield on the 10-year Treasury was at 1.80 percent, the lowest level since May 2013.

January 16, 2015 - IMFnews

Ocwen Full Steam Ahead on MBS Clean-up Calls and Ginnie Buyouts

A recent report from Barclays found that Ocwen is the servicer on $500 million worth of eligible deals where the collateral value is above 107.

January 16, 2015 - IMFnews

Non-Agency MBS Issuance Finished Strong in 2014, But…

Securitization of nonperforming and re-performing mortgages accounted for just over half of total non-agency MBS production in 2014.

January 15, 2015 - Inside Mortgage Finance

Suddenly, the Sale of Ocwen’s Agency Servicing Portfolio Looks in Doubt; Ramifications for the M&A Market?

Ocwen’s plan to sell roughly $182 billion of agency servicing rights may have gone up in smoke this week after it was revealed that the California Department of Business Oversight could pull its mortgage licenses in the state. One servicing advisor, requesting anonymity, said the nonbank’s latest run-in with regulators “effectively put an illiquid label on all of their servicing rights.” Another advisor suggested...

January 15, 2015 - IMFnews

Short Takes: A Boom in Bank MSR Sales? / Ocwen’s Bonds Hold Up / Common Securitization Solutions’ ‘Black Budget’ / New Global Mortgage Chief for Citi / New Hires for

The FHFA, so far, has declined to provide a budget figure to the general public.

January 15, 2015 - IMFnews

First-Lien Production Down Slightly at BofA; CRES Continues to Bleed Red Ink

At yearend, Bank of America serviced $693 billion of home mortgages, a 4 percent decline from Sept. 30.

January 14, 2015 - IMFnews

Short Takes: New Jumbo Deal from Two Harbors / Now for a Nice Word on Ocwen / Maybe Bill Erbey Will Buy…Nah… / What Will Altisource Say? / The 2015 GSE Scorecard is Out

One servicing advisor raised an interesting scenario Tuesday: Maybe Bill Erbey will swoop in and buy all of Ocwen’s shares and take the whole thing private.

January 14, 2015 - IMFnews

4Q Mortgage Banking Income Fell 27 Percent at JPM, Originations Up 8 Percent

Meanwhile, JPM marked down the asset value of its residential servicing portfolio to $7.436 billion at Dec. 31, 2014, a 10 percent reduction from 3Q14.


The FHA is cutting its annual premium by 50 basis points. How much of a difference will this cut make in your FHA business?

Not much at all—maybe 10 percent at best.
Modestly. We expect a 10 percent to 25 percent gain in applications.
This is a real game changer, 25 percent or better.
Hard to say. This cut may just steal business away from the new Fannie/Freddie 97 LTV effort.

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