Mortgage Servicers

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

November 21, 2014 - Inside FHA Lending

GNMA Eyes Stronger Oversight of Nonbank Issuers

Ginnie Mae is seeking comment on several proposed data collections, including those that would strengthen the agency’s ability to monitor participants in its mortgage-backed securities programs. Due to its growing concern over the influx of non-depository issuers into the single-family MBS program, Ginnie has proposed to collect more loan-level data to supplement the information already being collected and reported on a monthly basis. The proposed data collection consists of bankruptcy-related information (action type, case identifier, chapter type, bar date) as well as borrower-related information (borrower bankruptcy indicator, classification type, total mortgaged properties, counseling initiated indicator and credit score date). Other proposed new data include document custodian ID, type of insurance claim coverage, investor unpaid principal balance (UPB), adjustment to ...


November 21, 2014 - Inside FHA Lending

Wells Fargo, DOJ Settlement Talks Hit Wall

Wells Fargo and the Department of Justice are reportedly at an impasse in their settlement talks in connection with a lawsuit accusing the bank of improper underwriting and false certification of certain FHA-insured loans. In an e-mailed statement to Inside FHA Lending, a bank spokesperson said Wells Fargo’s good faith effort to work with the federal government to resolve the complaint “has not yet resulted in a settlement.” Nonetheless, the bank “will move forward with presenting [its] case in support of [its] prudent and responsible FHA lending practices, which have produced high-quality FHA loans with delinquency rates that are half the industry average,” the spokesperson added. This week, citing an unidentified source, Bloomberg reported that lawyers for the government and the bank have told the presiding judge in the case that they ...


November 21, 2014 - Inside FHA Lending

HECM Portfolio Down to Negative in FY 2014

The economic value of the FHA’s Home Equity Conversion Mortgage legacy portfolio fell to negative $0.9 billion in fiscal 2014 due mainly to volatility in long-term house prices and interest rates, according to the latest independent actuarial report on the health of the Mutual Mortgage Insurance Fund. The latest result was a significant improvement from FY 2012, when the fund stood at negative $2.8 billion. In fiscal 2013, the HECM portfolio’s economic value of positive $6.5 billion appeared to be a whopping change from the previous year but that amount reflected a $4.6 billion cash infusion from the forward program and from the $1.7 billion mandatory appropriation, the report clarified. The report also showed a corresponding decline in the HECM capital ratio to negative 1.20 percent. Actuarial projections for fiscal 2015 place the HECM portfolio’s economic value at negative $1.1 billion. The fund’s capital resources for ...


November 21, 2014 - Inside FHA Lending

MMIF Value, Capital Ratio Turns Positive

FHA Mutual Mortgage Insurance Fund ended fiscal 2014 in the black but was still far short of its statutory reserve requirement, prompting critics in Congress to renew their cries for FHA reform. An independent actuarial report sent to Congress this week showed that the MMI Fund now stands at $4.8 billion after a gain of nearly $6 billion over the last year. For the first time since 2009, the fund’s capital ratio also crossed into positive territory at 0.41 percent, up 52 basis points from the negative 0.11 percent posted in fiscal 2013. Overall, the economic value of the fund has risen by $21 billion over the last two years because of the aggressive steps the agency took to stabilize and strengthen the fund, the report said. Policy changes led to improved underwriting for single-family mortgages, increased mortgage insurance premiums, stronger loss mitigation policies and higher recoveries, it added. In addition, with ...


November 21, 2014 - Inside Nonconforming Markets

News Briefs

The Consumer Financial Protection Bureau proposed new servicing requirements this week. Among other changes, the federal regulator proposed requiring servicers to offer loss mitigation to borrowers that have received a loan mod but are in danger of re-default. The CFPB’s servicing rules currently require a servicer to evaluate a borrower for loss mitigation only once during the life of the loan. The proposed rule would also set requirements for ... [Includes three briefs]


November 21, 2014 - Inside Nonconforming Markets

Ocwen, Wells Cancel Planned Servicing Transfer

The servicing transfer from Wells Fargo to Ocwen Financial that had been on hold for more than eight months was cancelled last week by the two firms. Scrutiny from the New York Department of Financial Services prompted Ocwen to place the transfer on hold in February. The transfer was first announced in January and would have involved servicing on non-agency mortgage-backed securities with an unpaid principal balance of $35.9 billion along with $3.3 billion in mortgages serviced for ...


November 21, 2014 - Inside Nonconforming Markets

Subprime Servicing Business Draining Away

The subprime servicing business continued to decline during the third quarter of 2014, and the sector’s top player faces big challenges in trying to get any bigger. The supply of subprime mortgage servicing outstanding fell to an estimated $352 billion at the end of the third quarter, according to a new Inside Nonconforming Markets ranking. That was down 5.9 percent from the end of June and off 15.8 percent from a year ago. Ocwen Financial remained the top servicer ... [Includes one data chart]


November 21, 2014 - IMFnews

What We’re Hearing: Higher FHA Costs, Not Lower / The GOP in Favor of This Tax Hike? / How About Regulating Nonbank Lenders? / Cyprus? Wilbur Ross Really is a Bottom Fisher / Ocwen Isn’t the Only Servicer That Loves India

There’s a growing fear that the CSBS might move to increase capital standards for nonbank originators as well.


November 21, 2014 - IMFnews

Fitch Dings Nationstar’s Servicing Ratings Due to Concerns About Financial Condition

Regarding Nationstar’s financial condition, Fitch previously referenced the financial condition of Fortress Investment Group, which owns 74 percent of the nonbank lender/servicer.


November 21, 2014 - IMFnews

CFPB Proposes Amendments to Mortgage Servicing Rules

Other changes include: providing flexibility for servicers to comply with certain force-placed insurance and periodic statement disclosure requirements.


November 20, 2014 - IMFnews

Wilbur Ross Quits Ocwen’s Board – for Vice Chairmanship at Bank of Cyprus

Two years ago, Ross’ WL Ross & Co. sold its mortgage banking operation, Homeward Residential, to Ocwen for $750 million in cash and convertible preferred stock.


November 20, 2014 - Inside Mortgage Finance

Delinquency Rates Nudges Higher in Seasonal Shift, Adjusted Rate at Pre-Crisis Levels

Mortgage delinquencies followed a seasonal trend and rose in the third quarter of 2014, according to the Inside Mortgage Finance Large Servicer Delinquency Index. The Mortgage Bankers Association, however, reported a 19 basis point drop on a seasonally-adjusted basis that put the overall rate at 5.85 percent, the lowest since the financial crisis. The 24 lenders that reported delinquency data to Inside Mortgage Finance had an average delinquency rate of 6.63 percent, up from 6.54 percent in the second quarter. Unadjusted delinquency rates usually spike higher in the third quarter, even in the midst of a downward trend. The delinquency index also showed...[Includes one data chart]


November 20, 2014 - Inside Mortgage Finance

Wells Expected to Keep MSRs Once Destined For Ocwen, At Least for a Little While

Wells Fargo is not expected to take new bids – at least anytime soon – on a highly delinquent $39 billion non-agency servicing portfolio that Ocwen Financial failed to buy because of all the regulatory scrutiny the nonbank is facing. However, servicing advisors who have seen some of the details on the portfolio contend that Wells may eventually try to unload the package next year, but is by no means under the gun to do so. “One thing you have to keep in mind is...


November 20, 2014 - Inside Mortgage Finance

CFPB Enforcement Actions Highlight What Mortgage Servicers Need to Look Out For

A careful examination of the big-ticket enforcement actions the Consumer Financial Protection Bureau has brought against leading mortgage servicers can help others in the space avoid the same fate and protect their bottom lines, according to top industry legal experts. During an Inside Mortgage Finance webinar earlier this week, Allyson Baker, a former CFPB attorney and partner at the Venable law firm in Washington, DC, discussed the importance of trends seen in a handful of servicing enforcement cases against Ocwen, SunTrust Bank and Flagstar Bank. “I think...


November 20, 2014 - IMFnews

Short Takes: Stop Guessing on Lawsky Already / Share Price of Fannie and Freddie Common Soars / Foreclosures on the Rise / Essent Sells More Stock

A GSE bill? Since Congress and President Obama have such a strong track record of working together on legislation we know how that’s going to turn out…


November 20, 2014 - IMFnews

CFPB Increasingly Working with Other Law Enforcement ‘Partners’

Mortgage companies may not realize it, but the CFPB is partnering with the state attorneys general, the Department of Justice, and in some cases, the Department of Financial Services in New York.


November 19, 2014 - IMFnews

Short Takes: Any G-Fee News? No / Keeping an Eye on MSR Sales / Why Realtors Will Live Forever / California Home Sales Nothing Special / Jeb Will be Back, Hensarling At Least

After a servicing sale closes, the GSEs must monitor each transaction to make sure the transfer of receivables took place in a timely manner and more…


November 19, 2014 - IMFnews

MIAC Auctioning Off $908 Million Fannie/Freddie Portfolio

With roughly six weeks left in 2014, some mortgage firms are rushing to sell MSRs as a way to bolster fourth quarter profits.


November 19, 2014 - IMFnews

Senate Banking Chair Urges Watt and Treasury to End GSE Conservatorships

The two GSEs have been in conservatorship for six-plus years now, with no legislative solution to their future in sight.


November 18, 2014 - IMFnews

Short Takes: Obama Won’t Give Up on Killing the GSEs / Redwood Sells Debt / More Ocwen Customer Complaints / Carrington Bolts ARMs / The Return of Mike Baldwin

Republicans have never been big fans of the GSEs and there’s plenty of Democrats who aren’t so sure about the government “guaranty” as well...


November 18, 2014 - IMFnews

Fannie Continues to Loosen Rules; 990 Days for a Foreclosure in New York

Fannie Mae recently loosened its credit standards on condominium loans. What's next?


November 18, 2014 - IMFnews

Mortgage Banking Income Softened in 3Q Despite Origination Surge

For the first nine months of 2014, the group reported $10.94 billion in net mortgage-banking income, a stunning 43 percent decline from the same period in 2013


November 17, 2014 - IMFnews

Short Takes: Former FHFA Chief Blasts Mortgage Industry / Who’s Behind the HIC? / More Relief From FHA / Ocwen’s Stock Recovers Slightly / Venable Hires Ex-Hensarling Staffer

So, which groups are behind the "housing-industrial complex"? DeMarco isn't naming names...


November 17, 2014 - IMFnews

MSR Deals Keep Coming; A $1.2 Billion Flow Deal From Phoenix

MIAC is out with a new $73 million Fannie package and MountainView and The Prestwick Group are working on transactions as well.


November 17, 2014 - IMFnews

Sources: PIMCO Invests in Nonprime Lender Citadel Servicing Corp.

According to Citadel’s website, it offers five different loan matrices, which have credit grades ranging from A down to C.


November 14, 2014 - Inside Mortgage Trends

Favorable Delinquency Trends Continued in 3Q14

Mortgage delinquency rates kept falling across the country in the third quarter of the year, according to data provided by the Mortgage Bankers Association, Fannie Mae and Freddie Mac. The delinquency rate for mortgages on one- to four-unit residential properties declined 19 basis points, on a seasonally adjusted basis, to 5.85 percent of all loans outstanding as of Sept. 30, 2014, according to the MBA. This is the lowest level seen since the fourth quarter of 2007 and represents the sixth straight quarterly decrease, according to the trade group. In terms of product mix, the seasonally adjusted delinquency rate slipped 15 bps to 3.05 percent for prime fixed loans and decreased 45 bps to 4.83 percent for prime adjustable-rate mortgages. ...


November 14, 2014 - IMFnews

What We’re Hearing: Can Cerberus Finally Do Something Right in Mortgages? / Kinder, Gentler Condo Guidelines from Fannie? / Lower LLPAs from Fannie but Tighter Cash-Out Rules / Ocwen, Ocwen, Ocwen

And there could be some good news on lower LLPAs. Fannie said that come May 2015, it will change how it treats loans where there are two or more borrowers...


November 14, 2014 - Inside MBS & ABS

NCUA Sues Trustee While BofA, US Bancorp Agree to Settle Trustee Suit; Morgan Stanley, WIC Face Probes

The National Credit Union Administration this week sued Deutsche Bank National Trust Co., alleging the bank violated federal and state laws by failing to carry out its duties as trustee for 121 non-agency MBS trusts. According to the complaint filed in federal district court in Manhattan, Deutsche Bank failed to protect five corporate credit unions – U.S. Central, WesCorp, Members United, Southwest and Constitution – that purchased $140 billion in RMBS issued from the trusts between 2004 and 2007. The securities lost...


November 13, 2014 - IMFnews

Maybe Nationstar Will Buy the $39 Billion (and Shrinking) MSR Package From Wells Fargo

According to one advisor who saw the original bid package, the delinquency rate on the non-agency MSRs are north of 20 percent.


November 14, 2014 - IMFnews

The Nonbanks in 3Q: Ocwen, WAC, PHH in the Dog House

Some publicly traded nonbanks are facing possible class-action lawsuits from angry investors who’ve seen billions of dollars in stock equity evaporate over the past year.


November 13, 2014 - Inside Mortgage Finance

Arvest Working on MSR Sale with Subservicing Option; First Transaction in Quite Some Time

For several months now, Arvest Bank has been working on a roughly $28 billion servicing sale with a subservicing component extended to the eventual buyer, but so far a deal has been allusive, according to investment banking sources familiar with the situation. “From what I can tell, the package is still out there,” said one source who was briefed on the situation. Arvest Bank services...


November 13, 2014 - Inside Mortgage Finance

Mixed Results for Publicly Traded Nonbanks: Ocwen, Walter, PHH in the Dog House; PennyMac and Redwood Show Promise

Although residential lenders are coming off a better than expected production quarter – and enjoying a decent last three months of the year – analysts and investors seem undecided on whether there’s opportunity in the market or it’s time to stay on the sidelines. Several high profile publicly traded shops that are considered “high touch” specialists – Nationstar Mortgage, Ocwen Financial and Walter Investment – continue to trade at steep discounts to their 52-week highs with all three facing possible class-action lawsuits from angry investors who’ve seen billions of dollars in stock equity evaporate over the past year. And then there’s...


November 13, 2014 - IMFnews

Short Takes: Commercial Bank in the Hunt for Mortgage M&A / Is LoanDepot #2? / Surviving Brands / Why Own When You Can Rent? / Essent’s Marzol to Retire

We should point out that even though LoanDepot is doing the buying, the Mortgage Master brand name will survive. LD did the same thing when it combined forces with imortgage last year…


November 13, 2014 - IMFnews

Trade Groups Complain to Fed Chief Yellen About the Mortgage Damage Caused by Basel III

“Banks of all sizes are having problems with the new limits,” the three trade groups argue.


November 13, 2014 - IMFnews

LoanDepot Acquisition of Mortgage Master Will Make LD the Nation’s 11th Largest Originator

In the retail channel, LoanDepot ranks fifth among all nonbanks, a figure that excludes what Mortgage Master brings to the table.


November 12, 2014 - IMFnews

Short Takes: Subprime Vet Jon Daurio Back in Biz? / Don’t Get Drunk on the Lawsky ‘News’ / Can the GOP ‘Fix’ the CFPB? / Nationstar Disappoints Some / Gateway Hires BB&T Mortgage Official

Will former Long Beach Mortgage executive Jon Daurio finally launch a new nonprime venture?


November 12, 2014 - IMFnews

Ocwen Affiliate Altisource Exits Force-Placed; Stock Gets Crushed

As IMFnews went to press, the share price of Altisource was getting slammed, down 20 percent on the day.


November 12, 2014 - IMFnews

Two Harbors the Latest to Unveil a Non-Prime Mortgage

“It has been clear to us for some time that the market has a need for products like this," said Two Harbors executive William Roth.


November 12, 2014 - IMFnews

CFPB on Servicer Exams: Compliance is Mixed

On the other hand, examiners cited violations based on policies and procedures reviewed at other servicers.


November 11, 2014 - IMFnews

Short Takes: HUD and DOJ Trouble for PrimeLending? / Such Legal Matters are Unpredictable / The Lawsky Effect: Nice Gain for Ocwen’s Stock / Good Riddance? / Thanks for the Stock, But…

Are investors in Ocwen jumping for joy now that word is out that NYDFS chief Benjamin Lawsky might be leaving next year?


November 11, 2014 - IMFnews

NYDFS on the Lawsky ‘Leaving’ Rumors: He Loves His Job

Stock analysts have claimed that Lawsky has been aggressively investigating Ocwen so he can make headlines, paving the way for an eventual run for public office.


November 10, 2014 - Inside the CFPB

Castle & Cooke Mortgage Files For Dismissal in RESPA, TILA Dispute

Castle & Cooke Mortgage late last month filed a motion to dismiss a putative class-action brought by one of the aggrieved parties who had already been compensated under the terms of the settlement the lender reached late last year with the CFPB. In Luis Cabrales v. Castle & Cooke Mortgage LLC, plaintiff Luis Cabrales contends that the lender improperly compensated its loan officers by giving them bonuses for putting customers in more expensive loans than what they qualified for. The plaintiff sued for violation of the Truth in Lending Act – a claim that Castle & Cooke is not challenging at this point. However, Cabrales also brought other causes of action: violation of Section 8 of the Real Estate Settlement Practices ...


November 10, 2014 - Inside the CFPB

Sidestep Common Pitfalls to Avoid UDAAP Enforcement Actions

There are a host of legal land mines that mortgage lenders must avoid if they want to keep from becoming the target of a CFPB enforcement action under its unfair, deceptive or abusive acts or practices (UDAAP) authority, according to top legal experts. Andrea Mitchell, a partner with the BuckleySandler law firm, told attendees at an Inside Mortgage Finance webinar last week that there are a number of representations lenders should stay away from in their marketing pitches. “Say what you mean and mean what you say,” Mitchell said. She then rattled off a list of potentially problematic terms to avoid, such as “free” or “no cost,” “best rates available,” “fastest” or “faster than…,” “improve/repair your credit” or “eliminate your ...


November 10, 2014 - Inside the CFPB

Mortgage Servicer Compliance Mixed, Supervisory Report Shows

In the first half of 2014, CFPB examiners conducted targeted reviews for compliance with the bureau’s new mortgage servicing rules and found mixed results, according to the agency’s latest supervisory highlight report. For example, the new rules require servicers to maintain policies and procedures to achieve specific objectives in areas such as loss mitigation, servicing transfers and service provider oversight. “In reviewing this area, examiners found that the policies and procedures at several servicers appeared to be reasonably designed to meet the specific objectives laid out in the rule,” said the new report. For instance, some servicers’ policies and procedures clearly outlined the ways in which they access and provide timely and accurate information. “These policies and procedures included specific ...


November 10, 2014 - IMFnews

Short Takes: LoanDepot-Mortgage Master Deal? / RPM? / Loretta Lynch, Not Lynn / Ex-LIME Executives May Land / Indiana Wants Me

Mortgage M&A activity remains red hot. We understand that RPM Mortgage of California is working on another acquisition...


November 10, 2014 - IMFnews

Ocwen Sale of $28 Billion in Ginnie Mae MSRs Falls Through

However, these same sources contend that Ocwen was successful in selling a smaller package of Ginnie MSRs.


November 7, 2014 - Inside FHA Lending

Reverse Mortgage Lenders Seek Policy Revisions

Reverse mortgage lenders are seeking a policy change that would allow Fannie Mae and Freddie Mac to count reverse mortgages toward their proposed annual affordable housing goals. In another regulatory area, the industry has asked to delay a proposed mortgage disclosure rule until reverse lenders’ concerns have been resolved. Commenting on the proposed 2015-2017 affordable housing goals for the government-sponsored enterprises, the National Reverse Mortgage Lenders Association is urging the Federal Housing Finance Agency to allow the GSEs to reenter the reverse mortgage market through a proprietary reverse mortgage program. Specifically, such a change would enable Fannie Mae and Freddie Mac to purchase reverse mortgages or securities backed by the product. Currently, the FHA under its Home Equity Conversion Mortgage program insures most ...


November 7, 2014 - Inside FHA Lending

NAR Urges FHA to Tighten Short Sale Oversight

The real estate industry is urging the FHA to tighten up its pre-foreclosure sale process and be more vigilant before referring loans to the single-fThe real estate industry is urging the FHA to tighten up its pre-foreclosure sale process and be more amily loan sales program (SFLS). Commenting on the proposed section on servicing of the FHA Single Family Policy handbook, the National Association of Realtors expressed concern that the FHA is auctioning large pools of mortgages without considering the investor’s ability to achieve neighborhood stabilization goals such as homeownership preservation and affordable housing. The first step for FHA to improve servicing and pre-foreclosure efforts is to ensure mortgage servicers’ full compliance with FHA loss-mitigation requirements before referring loans to the SFLS, the NAR suggested. In addition, the FHA should ...


November 7, 2014 - Inside FHA Lending

GNMA Servicing Improves Slightly in 3Q14

Ginnie Mae servicing bumped up slightly in the third quarter after an uneventful prior quarter as FHA purchase activity continued to drag, according to Inside FHA Lending’s analysis of agency data. Servicing volume rose quarter over quarter by 1.4 percent. On an annual basis, volume increased 4.6 percent from the same period a year ago. Ginnie Mae servicers ended the quarter with a total of $1.48 trillion in unpaid principal balance, up from $1.46 trillion in the previous quarter. The top three servicers saw volume drop on both quarterly and year-over-year bases. Wells Fargo remained as top servicer of Ginnie Mae mortgage-backed securities, closing out the quarter with $422.4 million, down 0.8 percent from the previous quarter and down 0.6 percent from the prior year. The mega-servicer dominated the Ginnie market with a 28.6 percent market share. JPMorgan Chase carved out a 10.1 percent market share with ... [1 chart]


November 7, 2014 - Inside FHA Lending

Reinstating 97s Could Delay Recovery for MMIF

Reinstating the government-sponsored enterprises’ conventional 97 percent loan-to-value mortgage programs would benefit first-time homebuyers and borrowers with little or no cash reserves for a downpayment but adversely affect the FHA Mutual Mortgage Insurance Fund, according to analysts. If limited to first-time homebuyers, a conventional 97 LTV loan would offer some new homeowners better home loan financing than FHA and provide greater access to mortgage credit, said analysts with Bank of America Merrill Lynch. For years, Fannie Mae offered conventional 97 LTV loans through its MyCommmunityMortgage to help first-time homebuyers purchase a home with only a 3 percent downpayment. It was a better alternative to FHA’s main product, which required a 3.5 percent downpayment. The Fannie product also had less ...


Poll

What is it going to take to convince lenders to loosen the credit box (i.e., remove underwriting overlays)?

The recent rep and warranty changes announced by the Federal Housing Finance Agency should go a long way in protecting lenders from future buybacks and help expand mortgage credit.
There won’t be any significant elimination of underwriting overlays until the government stops seeking huge mortgage-related penalties and settlements from lenders.
There shouldn’t be any expansion of the mortgage credit box since looser underwriting is what caused the recent mortgage crisis.

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