Mortgage Servicers

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

July 31, 2014 - Inside Mortgage Finance

Nonbanks Continue Assault on Mortgage Servicing Market, More Business Shifts to Smaller Institutions

Non-depository institutions aren’t letting a relatively stagnant mortgage servicing business stop them from continuing to build market share, according to a new Inside Mortgage Finance analysis and ranking of mortgage servicers at the midway point in 2014. Nonbanks that ranked among the top 30 servicers as of the end of the second quarter serviced an estimated $1.792 trillion of home mortgages, an increase of 12.4 percent over the past year. Depository institutions serviced considerably more – $5.142 trillion – but their aggregate portfolio was down 7.8 percent from the midway point in 2013. The shift to nonbank servicing from the first quarter was...[Includes two data charts]


July 31, 2014 - Inside Mortgage Finance

Short Sellers Have Made Big Bets Against Nationstar Mortgage and PHH Mortgage

In recent weeks, speculators have been pressing their bets that certain publicly-traded mortgage companies could be in for a world of hurt because origination volumes are likely to remain subdued this year and there is little chance of growth through servicing acquisitions. According to figures compiled by Compass Point Research & Trading and public websites, the two most-shorted mortgage stocks are Nationstar Mortgage and PHH Corp. Measured by the percentage of shares publicly available (known as “float”), Nationstar has...


July 31, 2014 - IMFnews

Short Takes: Matrix and Freedom Mortgage Come on Strong / Hope for Warehouse Banks? / Norcom Opens More Branches / About that Servicing Legislation… / Congress: We Can’t Live With Them, and We Can’t…

One joke making the rounds in Washington this week: Congress is going on its August vacation. How will we know the difference?


July 31, 2014 - IMFnews

Ocwen Shares Get Clobbered; Nonbank Declines to Discuss the ‘Lawsky Situation’

Ocwen watchers have wondered when – or if – New York state will ever bring any formal charges against the company.


July 31, 2014 - IMFnews

Ocwen Suffers Earnings Decline, Blames ‘Regulatory’ Costs; Will Invest in Non-Agency MBS

The unspoken factor affecting Ocwen's immediate future is Benjamin Lawsky and the New York Department of Financial Services.


July 31, 2014 - IMFnews

Nonbanks Continue Their Assault on Servicing Market Share

Among the nation’s top five servicers, all suffered a decline in their MSR portfolios. Among the top 30, 20 firms saw a reduction in housing receivables.


July 30, 2014 - IMFnews

New York Hard-Money Lender (with a Warehouse Line) Files IPO

The CEO also noted that the Great Neck, NY-based company has a $7 million warehouse line of credit with Sterling Bank. “That’s an achievement,” he said.


July 30, 2014 - IMFnews

Another Top Executive Departs Nationstar: Chief Compliance Officer Tankersley

Not only is Nationstar Mortgage one of the most shorted stocks in the sector, but it seems to be having quite a bit of turnover in the executive suite.


July 29, 2014 - IMFnews

Short Takes: Two Harbors Hits Market with a New Jumbo MBS / CFPB Targets Great Lakes Area Mortgage Lender / Happy (?) Third Birthday CFPB / Shorts Target Stonegate Mortgage / New Duties for BofA Mortgage Chief

Surprise: Two Harbors is preparing a new jumbo MBS deal. It looks like the bond will be issued in early August...


July 29, 2014 - IMFnews

House Bill Would Delay Basel III and MSR Rules, At Least Temporarily

A formal recorded vote has been requested and at press time was pending before the committee.


July 29, 2014 - IMFnews

Forget Ocwen’s Earnings, Will It Say Anything About the Lawsky Squabble?

“I don’t see how New York can’t ultimately approve Wells’ sale of servicing to Ocwen,” said one analyst. “I think it’s more a matter of when.”


July 28, 2014 - IMFnews

Short Takes: Lender Focusing on Four M&A Deals? / Mechanics Bank Inks Origination Deal with RPM / California, the Golden State of Mortgage Fraud? / Fannie Vendor Denies Discrimination Allegation / EverBank is Apparently a Jaguars’ Fan

RPM Mortgage, one of the largest privately held nonbanks in California, has signed a new origination deal with Mechanics Bank, Walnut Creek, CA.


July 28, 2014 - IMFnews

And the Most ‘Shorted’ Mortgage Stock is: Nationstar; PHH a Close Second

One stock analyst told IMFnews: “He hasn’t charged them [Nationstar] because he [Lawksy] doesn’t have anything.”


July 28, 2014 - IMFnews

A Ton of New MSR Deals Hit the Market, but Not Legacy Product

"There are plenty of small deals out there," said one mortgage analyst, "but no big ones."


July 28, 2014 - IMFnews

Believe It or Not: White House Still Working on Advancing GSE Reform This Year

In mid-July senior White House staff, Treasury officials and the staffers from the Council of Economic Advisers met with representatives from a number of industry trade groups to discuss housing finance reform.


July 28, 2014 - IMFnews

Big Banks Report Substantial Increase in 2Q14 Mortgage Income

Although only one of the 21 banks (BB&T) posted a net loss on mortgage banking during the second quarter, seven others reported lower profits than they had in the first quarter.


July 25, 2014 - Inside The GSEs

Enterprise Endnotes

Critic: CFPB Regulations Ensure Fannie, Freddie Market Dominance. The Consumer Financial Protection Bureau, through its scores of regulations, has stifled and discouraged mortgage market growth away from the GSEs, a critic of the bureau noted during the CFPB’s third anniversary last week. “One of the important effects of the CFPB has been to ensure the continuing market dominance of Fannie Mae and Freddie Mac by the way they have written their mortgage regulations, which give you a pass if you make a loan eligible for sale to Fannie or Freddie or give you very onerous legal risks if you don’t,” said Alex Pollock, a resident fellow at the American Enterprise Institute.


July 25, 2014 - Inside The GSEs

Fair Housing Group Accuses Fannie REO Contractor of Discrimination

A Fannie Mae real estate-owned contractor engaged in a “clear pattern” of neglecting Fannie-owned vacant foreclosed homes in black and latino neighborhoods compared to white neighborhoods in four different cities, according to a discrimination complaint filed with the Department of Housing and Urban Development this week. The National Fair Housing Alliance and two partners allege that Brandon, FL-based Cyprexx Services violated the federal Fair Housing Act by neglecting minority-owned Fannie REOs.


July 24, 2014 - Inside MBS & ABS

RMBS Liquidations Are Up for First Time in Two Years Due Partly to Growing Bank REO Properties

The conditional default rate, or annualized liquidations, of non-agency MBS loans rose 20 basis points to 4.92 percent in the second quarter, after declining for seven consecutive quarters from 9.76 percent in the second quarter of 2012, Fitch Ratings reported this week. “The recent turnaround in the trend can be partly attributed to a growing portion of bank-held real estate owned properties, which typically liquidate much faster than those that are still in the foreclosure process,” said Fitch. The rate of completed foreclosures to REO property has trended higher for four consecutive quarters. The previous decline in the CDR was driven...


July 24, 2014 - Inside MBS & ABS

As Subprime Auto Lending Heats Up, Losses Are Trending Higher on Securitizations, Ratings Stable

Subprime auto lending is just about back to the levels seen before the financial crisis, with increased ABS issuance volumes, somewhat higher credit losses and more credit enhancement to offset declining ABS credit quality, according to new research from Standard & Poor’s Rating Services. While newer subprime auto ABS have more credit risk, ratings are expected to remain stable. During an S&P webinar this week, Amy Martin, a senior director at the rating service, pointed out...


July 24, 2014 - IMFnews

Short Takes: A Kinder and Gentler FHA? / A Rapidly Improving MMIF? / CFPB and FTC Target Loan Modification Scammers / A Continuing Decline in Underwater Homes / MGIC CEO Culver to Retire

Or perhaps the FHA is concerned that the private mortgage insurance industry will continue to gain market share at its expense?


July 24, 2014 - Inside Mortgage Finance

Correspondent Lending Boosts Freedom Mortgage Originations, Nonbank Bulks Up on Servicing

Freedom Mortgage reported continued growth in originations in the second quarter of 2014, largely driven by correspondent production. The nonbank has focused on agency mortgages with strong underwriting, retaining servicing on the loans. Freedom had $5.72 billion in originations in the second quarter of 2014, a big 48.7 percent increase from the previous quarter and up 31.1 percent compared with the second quarter of 2013. Officials at the nonbank touted Freedom’s strength while originations have declined overall. “While the mortgage industry is experiencing a downturn, Freedom Mortgage has increased...


July 24, 2014 - Inside Mortgage Finance

Consumer Narratives Would be Added to Complaint Database Under CFPB Proposal as Industry Frets

Mortgage lenders and other financial services providers are up in arms about a new Consumer Financial Protection Bureau proposal to allow consumers to post narrative complaints about companies in the agency’s online complaint database. The bureau wants to expand the current database to include “unstructured consumer complaint narrative data.” A consumer who submits a complaint will be given the opportunity to check a consent box giving the bureau permission to publish his or her narrative. Where the consumer provides consent to publish the narrative, the related company will be given...


July 24, 2014 - IMFnews

Fannie Mae Survey: More Lenders May Keep Their MSRs

Regarding portfolio retention, the GSE found that over the next three months, 56 percent of nonbanks hope to grow their loan portfolios.


July 24, 2014 - IMFnews

JPMorgan Accused of Violating CFPB’s Mortgage Servicing Rules

In response to the suit, a Chase spokesman said, “We approved Ms. Wasko for a loan modification in 2010, but she never accepted it."


July 23, 2014 - IMFnews

Short Takes: More Gripes About the FHFA IG Report on Nonbanks / Will the MI Biz Shift back to FHA? / GSE REO Contractor Accused of Discrimination / Ellie Mae Signs Fat Lease / A Rise in Mortgage Applications but Can it Last?

One critic of the report on nonbank risk had this to say: “It’s just ridiculous what they [the IG] get away with. There’s risk in every business. Don’t they get it?”


July 23, 2014 - IMFnews

CFPB Proposes Adding Unvetted Customer Narratives to Complaint Database

Mortgage industry representatives are quite leery about the CFPB proposal. The comment period ends August 22.


July 23, 2014 - IMFnews

60-Year Old ‘Northeast’ Mortgage Company Hits the Auction Block

“There’s lots of talk of companies being for sale right now,” said Paul Hindman, managing director of Management Advisors Executive Search, “but not too much talk of deals closing.”


July 22, 2014 - IMFnews

Short Takes: Will CIT be a Player in Mortgages? / Another New CEO for Union Mortgage / Credit Suisse Buying NPLs from Astoria / JPM Gets Some Credit / IMA in Market with $1B of MSRs

Union Mortgage has been losing some of its top executives over the past year. A few months back, its president and CEO Robert Eastep departed for Stonegate Mortgage…


July 22, 2014 - IMFnews

Prospect Mortgage Still Scouring for Lenders to Buy?

“Prospect has a target list and they have an audience,” said one advisor. “But so far, in the mortgage M&A market there has been a lot of talk – with not too many deals getting done.”


July 22, 2014 - IMFnews

Freedom Mortgage Posts Record Originations in June

By comparison, in the first quarter of 2014, Freedom averaged $1.28 billion of originations per month.


July 22, 2014 - IMFnews

Most Mortgage Complaints Filed with CFPB Decline – Except for Servicing

Criticisms about servicing seem to be stubbornly resistant to much improvement, however, hovering in the 3,000 to 4,000 range for the last six quarters.


July 21, 2014 - Inside the CFPB

Mortgage Complaints to CFPB Plunge Across the Board

A new analysis by Inside the CFPB found that consumer complaints to the bureau about their mortgages fell sharply in the second quarter, which likely reflects a continued stabilization in the housing and mortgage markets. In 15 out of 16 metrics tracked, customer gripes declined by double digits, with the remaining metric showing only a modest rise year-over-year. And in terms of the sole metric that showed a slight rise – a 3.6 percent increase in criticisms about mortgage servicing year over year – even there the data show a double-digit improvement (20.6 percent) from the first quarter of 2014 to the second. However, upon closer examination, the data also reveal that the double-digit rates of decline in consumer complaints slowed during ...


July 21, 2014 - Inside the CFPB

Bureau Files Lawsuit Against Debt-Collection Firm, Principals

The CFPB filed a lawsuit in a federal district court last week against Frederick J. Hanna & Associates, based in Marietta, GA, and its three principal partners – Frederick J. Hanna, Joseph Cooling, and Robert Winter – accusing them of operating a debt-collection lawsuit mill that used illegal tactics to intimidate consumers into paying debts they may not owe. “The CFPB alleges that the firm operates like a factory, producing hundreds of thousands of debt- collection lawsuits against consumers on behalf of its clients, which mainly include banks, debt buyers and major credit card issuers,” the bureau said. Between 2009 and 2013, the firm filed more than 350,000 debt-collection lawsuits in Georgia alone, according to the CFPB. The bureau further alleged the ...


July 18, 2014 - Inside FHA Lending

Ginnie Mae Servicing Remains Flat in 2Q14

Ginnie Mae servicing remained flat in the second quarter of 2014, continuing a trend that began in the third quarter of last year as FHA refinancing fell and purchase activity slowed, according to Inside FHA Lending’s analysis of Ginnie Mae data. Servicing volume rose by only 0.7 percent from the first quarter, slightly lower from the 0.9 percent increase reported by Ginnie Mae servicers for the first three months of 2014. On the other hand, volume was up modestly by 5.9 percent year-over-year, data showed. Ginnie Mae servicers ended the second quarter with a total of $1.46 trillion in unpaid principal balance, up from $1.45 trillion in the prior quarter. Four out of the top five Ginnie Mae servicers were banks. Wells Fargo closed out the second quarter with $425.9 billion in servicing volume, a 0.2 percent decrease from the previous quarter but up 2.1 percent from a year ago. Its 29.2 percent market share put it ... [1 chart]


July 18, 2014 - Inside FHA Lending

VA Clarifies Impact of Same-Sex Marriage Policy

Same-sex couples are entitled to veteran benefits, including home loan guaranty, if their marriage is recognized by the state where they live or where they lived when they filed a claim for benefits – and not where the marriage took place.The VA made the clarification in the wake of guidance the agency issued regarding the benefits and services same-sex married couples are entitled to under current laws and regulation. On June 26, 2013, the U.S. Supreme Court, in United States v. Windsor, struck down Section 3 of the Defense of Marriage Act (DOMA), which governs the definitions of “marriage” and “spouse” for all federal agencies, because it was unconstitutional. The court held that the provision deprives a person of the right to equal liberty, which is protected by the due process clause of the Fifth Amendment. Prior to the SCOTUS opinion, DOMA defined “marriage” as a ...


July 18, 2014 - Inside FHA Lending

Infractions that Could Trigger MRB Enforcement

One deficiency commonly noted in cases heard by the Department of Housing and Urban Development’s Mortgagee Review Board is failure by FHA lenders and servicers to implement and maintain a quality control (QC) plan. FHA’s focus on quality control has increased over the last couple of years as the agency strives to correct underwriting flaws that have contributed to the massive losses and severe depletion of the Mutual Mortgage Insurance Fund. After years of guiding and helping clients comply and cope with FHA regulations, requirements and enforcement actions, the Collingwood Group reports that a common QC-related mistake among FHA lenders is failure to document steps taken to correct deficiencies – or to take any corrective action at all. Tied to this issue is ...


July 18, 2014 - Inside FHA Lending

Borrower OK Required to Voluntarily End Federal MI

New FHA guidance regarding voluntary termination of FHA mortgage insurance does not affect separate guidance requiring borrowers to continue payment of their annual insurance premium regardless of the loan’s amortization terms. The FHA made the clarification in relation to Mortgagee Letter 2014-13, which requires written consents by the lender and the borrower in all voluntary terminations of FHA mortgage insurance. The requirement becomes effective on Oct. 1st this year. Specifically, the guidance requires FHA lenders to document that they have obtained the borrower’s informed consent to terminate FHA insurance on the mortgage. The change ensures that the lender would incur no liability and that the borrower understands the terms of the voluntary termination. Under current rules, the FHA may terminate mortgage insurance at the request of the borrower and the lender. The lender may cancel the insurance endorsement upon notification by the FHA commissioner that the insurance contract is terminated.


July 18, 2014 - Inside FHA Lending

FHA to Lenders: Try PFS First Before DIL Option

If an FHA borrower runs out of options for loss mitigation and home retention, a lender must first consider a pre-foreclosure or short sale, with deed-in-lieu (DIL) of foreclosure as a second option, according to new FHA guidance. Mortgagee Letter 2014-5 states that the lender must first determine whether the borrower facing default or at risk of default qualifies for a pre-foreclosure sale (PFS). The FHA allows pre-foreclosure sales to be processed as either a “standard PFS” or a “streamline PFS.” The former is available only to owner-occupants while the latter is for both owner- and non-owner-occupied single-family properties. In determining standard PFS eligibility, the lender must use a “deficit income test” to determine whether the borrower is experiencing hardship and is able to sustain his or her mortgage. A DIT resulting in a negative amount would likely qualify the borrower for a ...


July 18, 2014 - Inside FHA Lending

JPMorgan Chief Seeks FHA Safe Harbor for Bank

JPMorgan Chase chief executive Jaime Dimon this week warned that the investment bank may rethink its FHA business without some type of safe harbor to shield it from potential future liabilities arising from the Financial Institutions Reform, Recovery and Enforcement Act and the False Claims Act. In February this year, JPMorgan agreed to pay $614 million to the federal government to settle allegations that it falsely certified poorly underwritten loans for FHA endorsement, causing massive losses to taxpayers in paid claims. Dimon lashed out at the government during a telephone briefing on the company’s second-quarter 2014 earnings report. He said JPMorgan lost a tremendous amount of money over what the government claimed was fraud but was in fact a “commercial dispute” between FHA and the bank. “We collected $600 million in insurance, the [government] disputed $200 million [alleging] it was fraud ...


July 18, 2014 - Inside FHA Lending

Endorsements Up for 620-679 Credit Scores

Mortgages with 620-679 credit scores accounted for more than half of FHA’s mortgage insurance business in the first quarter of 2014, up from 42.0 percent a year ago, according to the Department of Housing and Urban Development’s latest quarterly report to Congress on the state of the FHA Mutual Mortgage Insurance Fund. Data showed FHA-insured mortgages in the 620-679 credit score range, a band typically identified with borrowers with slightly tainted credit, comprised 51.1 percent of new endorsements in the first quarter. This was up from 50.1 percent in the fourth quarter of 2013. FHA endorsements in the 620-plus category started trending upward in the first quarter of 2011, while endorsements in the 720-850 credit score range began a slow decline during the same period. The distribution of borrower credit scores continued the migration seen in previous quarters, though at a ...


July 18, 2014 - Inside Nonconforming Markets

Regulators Get Serious with HAMP Enforcement

SunTrust Banks settled criminal allegations this month relating to activity under the Home Affordable Modification Program. The $320 million settlement marked the first time a HAMP servicer paid a monetary penalty under the program. To this point, penalties for violations of HAMP guidelines have been relatively lenient, with the harshest maneuver being a temporary stop in incentive payments from the program. However, an investigation led by ...


July 18, 2014 - IMFnews

What We’re Hearing: Is the FHFA IG All Wet Regarding Nonbank Risk? / Hurting the GSEs’ Reputations? / Time to Probe GSE Specialty Servicers? / Prospect Mortgage Continues to Hunt for Acquisitions / Raj Date Doesn’t Recognize ‘His’ CFPB

Industry reaction to the FHFA IG report on nonbank and small lender risk was swift. Maybe Fannie Mae is better off having Countrywide as its biggest customer again?


July 18, 2014 - IMFnews

An Increase in Originations Could Mean More Mortgage Jobs

Lenders are being careful about costs, but rising loan volumes could force some firms to hire, at least a little bit.


July 18, 2014 - Inside MBS & ABS

Single, Numerical Scale Suggested as the Fix For Structured Finance Transaction Ratings

As the Securities and Exchange Commission continues to consider how to reform the rating process for structured finance transactions, including non-agency MBS, industry analysts affiliated with the Brookings Institution suggested that the fix doesn’t require altering the issuer-pay model that has been in place for more than 40 years. Instead, the SEC should help establish transparent, numerical benchmarks, according to two industry participants, shifting away from the current system of letter-based ratings that are also used for corporate debt and sovereign debt. Ann Rutledge, a founding principal at R&R Consulting, a credit rating service, and Robert Litan, a nonresident senior fellow at The Brookings Institution, detailed their proposal in an economic study recently published by Brookings. “Securities that are rated only in an ordinal fashion – in order of likelihood of default – can be...


July 18, 2014 - IMFnews

Put Ginnie Mae in Charge of All Government MBS?

Over five years, Fannie and Freddie would be wound down, but would be allowed to be sold and recapitalized as private entities with different business plans.


July 18, 2014 - IMFnews

‘Flow’ Servicing Deals Rule the Roost, for Now

Did to raise cash in a tough origination market? Sell your MSRs.


July 17, 2014 - IMFnews

Short Takes: USB Grows Production by 27 Percent / New Applications Not So Hot / More Big MSR Deals on the Way? / Housing Starts Disappoint / Foreclosures Continue to Improve

Luckily, JPM’s Jamie Dimon doesn’t care about such silly thing as mortgage rankings. (And he's not a big fan of FHA either.)


July 17, 2014 - Inside Mortgage Finance

Miami Loses Discrimination Fight with Banks, But Some States Find Ways to Force Banks to Pay Foreclosure Costs

While legal attempts by city governments to force large banks to pay for the high cost of foreclosure have failed, efforts to resolve the problem in state legislatures appear to be making headway. The City of Miami suffered consecutive defeats in three of the four lawsuits it filed against major banks after a federal district court judge dismissed all three because of the city’s lack of standing to bring suit under the federal Fair Housing Act. U.S. District Court Judge William Dimitrouleas dismissed...


July 17, 2014 - Inside Mortgage Finance

Most of the Megabanks Saw Mortgage Profits Increase Firmly in 2Q; A Barometer for the Rest of the Industry?

The nation’s megabanks reported fairly strong mortgage earnings during the second quarter thanks to a jump in new originations, robust servicing revenue and expense cuts. If the results reported by Wells Fargo, JPMorgan Chase, Bank of America and Citigroup are any indication, the industry may be rebounding from a rough stretch in late 2013 and early 2014. But the first quarter of this year was so bad – and originations so weak – that lenders had no place to go but up. Larry Charbonneau, a warehouse lending analyst, said...


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