Mortgage Servicers

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

January 20, 2017 - Inside FHA/VA Lending

E-Submission Required for VA Prior-Approval Loan Documents

Effective Feb. 13, 2017, VA lenders will be required to submit prior-approval mortgage loans electronically through the WebLGY system to improve the prior-approval process. Currently, lenders mail their prior-loan approval packages to the regional loan center that has jurisdiction over loan underwriting – a tedious, time-consuming process. Electronic submission will help speed things up, the VA indicated. Lenders must follow the guidelines for prior approval and stacking order in the VA’s Lender Handbook. In addition, lenders must furnish a cover letter with the uploaded package stating the reasons for the prior approval and explaining any unique circumstances. The cover letter also must include the submitting underwriter’s name, phone number and email address as well as contact information for the underwriter’s manager. The lender must ensure that the file contains the correct and complete ...


January 20, 2017 - Inside FHA/VA Lending

FHA Codifies Key Changes to HECM Rules, Issues New Program Policies

The Department of Housing and Urban Development has codified significant changes to the Home Equity Conversion Mortgage program that have reduced risks to both FHA and reverse mortgage borrowers. Specifically, the rule codifies existing HECM policies implemented by mortgagee letters, implements statutory changes, issues new origination and servicing policies, and clarifies existing regulatory language. HUD said it has established an eight-month lead time between the publication of the final rule and the effective date, Sept. 19, 2017, to provide lenders enough time to understand the rule and plan for necessary changes. The grace period also allows time for FHA to issue guidance and make system changes. The National Reverse Mortgage Lenders Association expressed support for the final rule. “Personally, I am glad to see this final rule get out the door,” said NRMLA President and ...


January 20, 2017 - Inside FHA/VA Lending

Lenders Expect VA Refis to Drop in 2017, Rising Demand for Purchase

VA originations have been trending upward over several quarters, thanks to an unusually heavy share of refinance business, but all good things, at some point, must slow down, lenders say. The refinance business overall has fallen to 45 percent from 55 percent in the fourth quarter of 2016, and that will have an effect on VA originations in the first quarter of 2017, said Andy May, chief operating officer of the American Armed Forces Mutual Aid Association Mortgage Division. Going forward, May expects VA originations to fall by 10 percent in the first quarter due to rising interest rates. But even though rates have been trending up, May saw an uptick in VA loan applications in January as fence-sitters jumped into the market to take out a loan before rates went any higher. “The MBA estimates rates will rise above 5 percent in the next 24 months and then down to 4.8 percent by the end of 2018, and up to 5.3 percent at the ...


January 20, 2017 - Inside FHA/VA Lending

FHA/VA Default Rates Spike Up In 4Q16, Nonbanks Still Growing

Mortgage default rates appeared to spike higher in the fourth quarter of 2016, according to a new analysis and servicer ranking by Inside FHA/VA Lending. Some 5.51 percent of FHA loans in Ginnie Mae mortgage-backed securities pools were reported as 30- to 60-days past due at the end of December. That was up 80 basis points from the previous quarter and was easily the highest default rate in the past three years. FHA default rates were also up in more serious delinquency categories: loans 60- to 90-days past due and those over 90-days late. The figures are based on loan count and are not seasonally adjusted. Similar trends occurred in the VA home loan guaranty program. The 30-60 category was up 41 bps, while 90+ delinquencies jumped 19 bps. The supply of Ginnie single-family MBS outstanding continued to set new records. The total, not including multifamily and FHA home-equity conversion ... [4 charts]


January 20, 2017 - IMFnews

What We’re Hearing: Time for Steve to Talk to Mel / Going to Bed, Disappointed / The GSE Stock Bet: Buy Low, Sell High / Is Pershing Square Losing Money on the GSEs? / NAR Chief Stays Hopeful on MIP Cut

As one former GSE stock analyst told us: “There’s no way they can be privatized. To maintain an AAA rating they would need 25 percent (I’m guessing) capital to assets. Even at 5 percent there is not enough spread to earn a market return on capital.”


January 20, 2017 - IMFnews

Residential Production at CitiMortgage Down 14 Percent in 4Q16

Citigroup’s showing in originations paled in comparison to some of its megabank competitors...


January 20, 2017 - IMFnews

Upwards of $20 Billion in Legacy Subprime Mortgages Could be Refinanced

Black Knight studied loan-level data on outstanding mortgages to derive at its conclusion…


January 20, 2017 - Inside MBS & ABS

Investor Cuts Stake in the Nation’s Largest Mortgage REIT Annaly as Rising Rates Cause Nervousness

International Value Advisors recently cut its stake in Annaly Capital Management – the nation’s largest mortgage real estate investment trust – by roughly half, a development that could be repeated by other investors as rising rates cause new concerns about MBS prices. At year-end, International owned 4.55 percent of Annaly compared to 9.60 percent a year earlier. Annaly’s largest investment is in agency MBS, of which it owned $73.5 billion at Sept. 30. The publicly traded REIT is...


January 19, 2017 - IMFnews

Treasury Nominee Mnuchin Shoots Down GSE ‘Recap and Release’ Concept

In general, the Treasury nominee said his goal is to find a “bipartisan solution” to Fannie and Freddie...


January 19, 2017 - Inside Mortgage Finance

A Mixed Quarter for the Banks: Decent Production, Sweet MSR Marks but Unclear Road Ahead

The nation’s largest banks revealed better-than-expected residential origination figures (for some) and mouth-watering markups on the value of their servicing portfolios. That’s the good news. But it wasn’t all wines and roses. On the servicing front, BOK Financial revealed that fourth quarter income was reduced by $17.4 million because it left servicing-related hedges on the books for too long, betting that rates would stay low for an extended period of time. PNC Bank saw...[Includes one data table]


January 19, 2017 - Inside Mortgage Finance

The Beat Goes On. Banks Backpedal from Agency Servicing Market in 4Q16, Especially Ginnie Sector

The evolution of the agency mortgage-servicing market isn’t over, though it appears to have settled into a long-term transition by attrition. At the end of 2016, depository institutions serviced some $3.584 trillion of single-family home loans committed to mortgage-backed securities guaranteed by Fannie Mae, Freddie Mac and Ginnie Mae. That was down 1.0 percent from September, a period during which the supply of agency MBS debt outstanding was growing. The depository share of agency MBS servicing fell...[Includes two data tables]


January 19, 2017 - IMFnews

Short Takes: The No. 2 at HUD Will Be… / Carson’s Advisors / Mnuchin Says His Goal was to Modify Mortgages / The Roots of OneWest: Countrywide / Flagstar Names Whip to its Board

Early in its existence, IndyMac was a nonbank and had been grub-staked by Countrywide Financial...


January 19, 2017 - IMFnews

Residential Lending Tumbles at BB&T; Mortgage Earnings Drop as Well

BB&T saw residential loan production decline in the fourth quarter while its servicing portfolio fell by less than 1 percent.


January 19, 2017 - IMFnews

Incenter Selling $4 Billion Freddie Mac Servicing Portfolio

The delinquency rate on the package is just 0.65 percent, based on number of loans…


January 19, 2017 - IMFnews

RPM Mortgage Hits the M&A Trail Once Again

Late last year, RPM made what it called an “investment” in American Eagle Mortgage of Ohio…


January 19, 2017 - IMFnews

Nonbanks Increased Agency Servicing by Almost 22 Percent in 2016

Nonbank servicers have a particularly big footprint in the Ginnie market, accounting for 53.6 percent of servicing outstanding at Dec. 31…


January 18, 2017 - IMFnews

Short Takes: Time to Worry About ‘Deferred Tax Assets’? / Good News or Bad News? / A ‘Conceptual Exercise’ / Sen. Elizabeth Warren Won’t be in Attendance / New PAC Chief for MBA

One mortgage insurance lobbyist, when informed of the possibility, called it “great news” while two lenders we interviewed said it was an awful development…


January 18, 2017 - IMFnews

U.S. Bancorp Reports Lower Home Originations and Applications for 4Q

USB blamed the weaker mortgage performance on “lower origination and sales volume.”


January 16, 2017 - Inside the CFPB

State Roundup

NY Acts to Hold Banks and Mortgage Servicers Accountable for Maintaining “Zombie Properties.” The New York Department of Financial Services recently finalized a regulation intended to protect communities from the blight of “zombie properties” by requiring banks and mortgage servicers to report and maintain vacant and abandoned properties.... Mortgage Servicers Face New Licensing Requirement in Kentucky. The Kentucky Department of Financial Institutions has decided to require both master servicers and subservicers to obtain a license as a mortgage loan company with the KDFI if the loans being serviced are secured by residential real property located in the state....


January 16, 2017 - Inside the CFPB

Mortgage Complaints Keep Falling as Market Continues to Heal

Empirical evidence of the mortgage market’s recovery is still piling up, with the latest quarterly consumer complaint data from the CFPB showing that gripes about home loans fell in most categories tracked, both on a quarterly basis and year over year, according to a new analysis and ranking by Inside the CFPB. Consumer criticisms in the fourth quarter fell a solid 15.0 percent from the period ending Sept. 30, 2016. Finger pointing by borrowers fell on a YOY basis as well, but by a smaller 4.5 percent, the data show. With fewer and fewer borrowers underwater or in foreclosure these days, it should be no surprise that complaints about loan modification are down the most [With three exclusive data charts] ...


January 16, 2017 - Inside the CFPB

HSBC Slammed With $33 Million Fine Over Flawed Foreclosures

The Office of the Comptroller of the Currency recently fined HSBC $32.5 million for failure to correct faulty foreclosure practices in a timely manner as per a consent order originally issued back in 2011 to correct practices that harmed borrowers in the wake of the housing market’s collapse. The OCC also said the institution failed to file payment change notices (PCN) that complied with bankruptcy rules, which resulted in roughly $3.5 million in borrower remediation for approximately 1,700 mortgage loan accounts. “The bank’s untimely and missed PCN filing practices did not comply with bankruptcy rules, required the bank to undertake operational enhancements to achieve compliance, and were unsafe and unsound practices,” according to the consent order. The bank neither admitted ...


January 17, 2017 - IMFnews

Short Takes: PE Firm Eyes Three Mortgage Acquisitions / One Lender That’s Definitely Looking… / LOS Vendor Hires New President / Another Court Victory for PHH

Some M&A advisors believe 2017 could be a banner year for mortgage company sales. Then again, that’s what they predicted early last year...


January 17, 2017 - IMFnews

Servicing Auctions Begin to Heat Up; New Packages from IMA, Phoenix

The lenders selling the MSRs are both nonbanks…


January 17, 2017 - IMFnews

Cordray Has a Target on His Back. But When Will Trump Pull the Trigger?

It’s no secret that Trump would like to fire Cordray, it’s just a matter of how and when…


January 13, 2017 - Inside The GSEs

Fannie Gained Share in Surging GSE 1-Family Business of 2016

Heavy refinance activity at the end of the year lifted single-family business at Fannie Mae and Freddie Mac to a three-year high in 2016, according to a new Inside The GSEs analysis and ranking. The two firms guaranteed $973.72 billion of single-family mortgage-backed securities during 2016, up 18.1 percent from the previous year. That included a 5.7 percent increase from the third to the fourth quarter that was fueled by a 24.5 percent jump in refi loans delivered into new GSE MBS. While both companies saw solid gains from 2015 activity, Fannie’s 23.3 percent increase was more than double the 11.0 percent rise in Freddie volume. [includes two charts]


January 13, 2017 - Inside MBS & ABS

Multiple ABS Sectors Expected to Turn in Stable Performances This Year, Analysts Say

With financial markets awaiting, with some uncertainty, the public policy positions of the incoming Trump administration and the new Congress, industry analysts say ABS investors can expect most sectors to turn in stable performances in 2017. “As we look back on 2016 and consider the 2017 global structured finance outlook, most markets and their credit conditions seem favorable, and in some cases, even ideal. However, 2017 has many unknowns, especially the specific policies and priorities that will be adopted by the new U.S. administration,” said analysts with S&P Global Ratings in a recent outlook report. “Some would suggest government-sponsored enterprise privatization is possible, risk retention could be revised, and an appropriate/globally consistent capital treatment for structured finance products could be approved.” Further, “For the most part, we expect...


January 13, 2017 - Inside MBS & ABS

Judge OKs BofA Settlement; SEC to Resubmit Payout Plan; Court Affirms Dismissal of Repurchase Claims

Judge William Pauley of the U.S. District Court for the Southern District of New York has approved a $335 million settlement by Bank of America with three pension funds and other investors to resolve a securities class-action against the bank. The settlement is one of the largest class-action settlements of securities-purchase claims arising from the financial crisis, according to the Pennsylvania Public School Employees’ Retirement System (PSERS), the court appointed lead plaintiff in the six-year old case. Other investors include...


January 13, 2017 - IMFnews

Wells Fargo, JPM and BofA All Managed to Increase Production in 4Q16. The Last Squeezing of the Mortgage Grapes?

In general, nonbanks have been gaining origination market share from depositories over the past few years, a trend that shows no sign of abating.


January 13, 2017 - IMFnews

What We’re Hearing: Reading the Wells Fargo (Origination) Tea Leaves / Nonbanks Rule? / MSR Mark-up Mania / CA-Based Nonbank Plans to Hire 1,000 LOs? / The First To Go: Operations Staff / Cordray is Going to be Fired. No Duh

It’s been no secret in Washington financial circles that shortly after Donald Trump was elected president, the decision was made by his “team” to fire CFPB director Richard Cordray...


January 13, 2017 - IMFnews

What Does the Future Hold for PHH?

Bose George, who follows PHH for Keefe, Bruyette & Woods, also used the phrase “liquidation” to describe the company’s sale of assets.


January 12, 2017 - IMFnews

Short Takes: HUD Nominee Carson Says he will ‘Review ‘the MIP Cut / Why Banks Avoid the FHA Program / HUD’s Budget: $45 Billion / Investor Cuts Stake in Annaly / CPR&T Downgrades Ocwen

CPR&T predicted that the asset value of Ocwen’s mortgage servicing portfolio likely won’t benefit much from the recent spike in interest rates…


January 12, 2017 - Inside Mortgage Finance

FHFA to Step Up Pressure on Fannie and Freddie to Manage Nonbank Servicer Risks

The Federal Housing Finance Agency says it will finalize new plans for examining how well Fannie Mae and Freddie Mac manage the risks of mortgage servicing transfers this month. The agency has been under scrutiny by its Inspector General for failing to push the two government-sponsored enterprises to manage risks posed by nonbank servicers. In a new report, the IG said the FHFA has not fully made sure that both GSEs are following the three advisory bulletins it has issued that address nonbank servicer risks, among other things. The report is heavily redacted, making it difficult to determine where FHFA examiners have failed, but it appears that there have been shortcomings for one of the GSEs. The three advisory bulletins address...


January 12, 2017 - Inside Mortgage Finance

RPM Mortgage Hits the M&A Trail. Goal is To be a $14 Billion a Year Originator, At Least

RPM Mortgage, Alamo, CA, is in serious negotiations to buy at least two other mortgage banking firms – or their assets – and has its eye on at least one other shop, according to investment banking officials who claim to have knowledge of the situation. If the acquisitions come to fruition, they could put the privately held nonbank on track to be a $14 billion a year originator, said a source who advises the company. One of the target acquisitions is a $4 billion a year lender, the other a $650 million funder. A spokesman for RPM declined to comment. A few weeks back, RPM made...


January 12, 2017 - Inside Mortgage Finance

Banks and Nonbanks Expected to Make Handsome MSR Mark-ups for 4Q16. But What Does it Mean for Sales?

Banks and nonbanks alike are expected to unveil sizable mark-ups on the asset value of their mortgage servicing rights for the fourth quarter, with the general consensus being that increases will range from 20 to 25 basis points. One servicing advisor, requesting his name not be used, said he has some clients that will book gains of 30 to 35 bps, though he indicated this won’t be the norm. “In general, it’s going to be a huge move,” he said. This source made...


January 12, 2017 - IMFnews

FHFA to Step Up Pressure on Fannie and Freddie to Manage Nonbank Servicer Risks

The new FHFA IG report is heavily redacted…


January 12, 2017 - IMFnews

Banks and Nonbanks Expected to Take Handsome MSR Mark-ups for 4Q16

“No matter what, it’s an enormous move,” said Mark Garland, president of MountainView Servicing Group, Denver.


January 12, 2017 - IMFnews

An Unintended Consequence of the FHA MIP Cut: A Damper on Ginnie MSR Sales?

Buyers and sellers are waiting to see if the 75 basis point increase in rates will stick around or turn out to be a fluke and then reverse course...


January 11, 2017 - IMFnews

Nationstar Hires Capital One Executive Patel as EVP and Chief Risk Officer

Patel also will serve as a member of the lender's executive management team.


January 10, 2017 - IMFnews

Short Takes: Gain-on-Sale Let-down? / About Those MSR ‘Marks’... / Ocwen Attorney Joins Philly Law Firm / Go with the ‘Waterfall’ / Vegas-Based Lender Hires Sales Chief

As gain-on-sale margins decline, MSR marks will rise...


January 10, 2017 - IMFnews

HSBC Hit with $33 Million Fine Over Flawed Foreclosures

As part of the settlement, the OCC lifted certain business restrictions that had been placed on HSBC…


January 10, 2017 - IMFnews

Mortgage Hiring Accelerates in November. Can it Last?

Some industry executives have been predicting a correction in mortgage hiring in the coming months, with large layoffs anticipated at shops that have focused too strongly on refinancings.


January 9, 2017 - IMFnews

Short Takes: FHA Premium Cut Has Negative Impact on MI Stocks / Carson Should Expect a Lot of Questions on the MIP / Of Mortgages and Brains / FHLBs Get More Flexibility on Collateral

Mortgage insurance stocks aren't have a good day. Blame the FHA MIP cut?


January 9, 2017 - IMFnews

AMC Acquires Origination and Servicing QC Services from Stewart

AMC acquired Stewart’s residential due diligence and servicing functions, including credit, compliance, origination and servicing quality control reviews.


January 6, 2017 - Inside FHA/VA Lending

Michigan Lender Agrees to Pay $48 Million to Resolve FCA Claims

United Shore Financial Services of Troy, MI, has agreed to pay $48 million to resolve allegations of FHA-related fraud, adding to the more than $7 billion in settlements and judgments the Department of Justice has collected since 2009. United Shore, parent company of United Wholesale Mortgage and Shore Mortgage, was accused of improperly originating mortgages and falsely certifying compliance with FHA requirements. Originated between Jan. 1, 2006, and Dec. 31, 2011, the loans eventually turned bad, resulting in significant losses to the FHA insurance fund. The complaint did not specify the number and total amount of the bad loans United Shore originated or the size of FHA’s losses on those loans. United Shore was charged with violation of the False Claims Act, becoming the latest financial institution to join a growing list of FHA lenders that have opted to settle, rather than litigate, ...


January 6, 2017 - IMFnews

What We’re Hearing: What’s Up with Walter Investment? / MSR ‘Mark-up’ Mania / Rates Heading South, a Bit / Layoff Rumors and Actual Layoffs / Bad News for GSE ‘Recap and Release’?

With rates falling again, lenders may be rethinking any planned layoffs...


January 6, 2017 - Inside MBS & ABS

Precious-Metals Dealer Issues $100 Million ABS Backed by Loans Secured by Coins and Bullion

Monex Deposit Company issued a $100.0 million ABS backed by loans on silver and other coins in late December, according to Morningstar Credit Ratings. The deal received a AA rating, with the rating service noting concerns about the volatility of silver prices and regulatory issues. MDC is a precious-metals dealer established in 1987 whose predecessor dates back to 1967. Scala Funding Company 2016-1 consists of 1,854 accounts with an average balance of $51,760. The loans backing the ABS are offered...


January 6, 2017 - IMFnews

ABA Calls for Expanded ‘Qualified Mortgage’ Language, Housing Finance Reform

ABA seeks the restoration of “balance to the regulatory process,” including Consumer Financial Protection Bureau reform…


January 6, 2017 - Inside MBS & ABS

Angel Oak Gears Up for New Non-Agency MBS, While PIMCO and Citadel May Tap the Market Later in 2017

With two of the nation’s largest originators of nonprime and non-qualified mortgages hoping for a record production year in 2017, the mostly anemic securitization market for these types of credits could receive a real boost. But the big question remains: how much will the two firms – Angel Oak Mortgage Solutions and Citadel Servicing Corp. – tap the MBS market? In 2016, the Irvine, CA-based Citadel funded...


January 6, 2017 - IMFnews

The Big Boys of Servicing Suck Wind; Smaller Shops Shine

Growth was far from uniform among servicers, Inside Mortgage Finance found…


January 5, 2017 - Inside Mortgage Finance

FHFA Loosens Rules on FHLBank Advance Collateral And Servicing Transfers for Acquired Mortgages

The Federal Housing Finance Agency late last month issued two final rules that will give the Federal Home Loan Banks somewhat more flexibility in setting collateral requirements for advances and managing their acquired member assets (AMA). A new AMA rule was necessary because the Dodd-Frank Act requires financial regulators to remove references to ratings, which had been used in setting limits on their AMA programs, most of which involve purchases of mortgages from member institutions. Under the new rule, the FHLBanks will be able to choose their own models to determine credit enhancement requirements. The FHFA also deferred...


Poll

HUD has announced a 25 basis point cut in FHA premiums, which is slated to take effect in late January. Is your lending shop for or against a cut in FHA premiums?

For. It should help lending volumes.
Against. The private MI sector should take on this risk, not the government.
Too early to say.
I believe the new White House may scuttle the idea so it doesn’t matter.

vote to see results