Mortgage Servicers

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

October 24, 2014 - Inside FHA Lending

Around the Industry

FHA to Host First Briefing Session on the First Installment of the Single Family Policy Handbook. The FHA will have a webinar on Nov. 6, 2014, from 2 p.m.-3 p.m., for stakeholders in connection with the first completed section of the Single Family Housing Policy Handbook, the Origination through Post-Closing/Endorsement for Title II Forward Mortgages (Origination through Post-Closing). The new handbook is designed to make it easier for stakeholders to do business with the FHA and support greater access to mortgage credit for qualified borrowers. Once fully completed, the handbook will contain all FHA origination and underwriting policies that lenders use in making FHA-insured loans. The FHA published the first section of the handbook on Sept. 30, which becomes effective for FHA case numbers assigned on or after June 15, 2015. The agency urged lenders to ...


October 24, 2014 - Inside FHA Lending

FHA Notifying Lenders of Possible MRB Action

The FHA warned it would soon be sending notices to lenders who are overdue in completing their annual recertification packages, a rule violation that could land them before the Mortgagee Review Board for disciplinary action. Lenders who were unable to submit their recertification packages containing the required financial reports, annual recertification statements and the renewal fee payment will be receiving notices of deficiency from the FHA. FHA extended the filing deadline to June 27, 30 days after the deployment of the new Lender Electronic Assessment Portal (LEAP) system used in the lender recertification process. Traditionally, lenders were required to access both FHA Connection and Lender Assessment Sub-System (LASS) to complete the annual recertification process. LEAP will now enable lenders to complete all ...


October 24, 2014 - Inside FHA Lending

GNMA Raises Net Worth, Liquidity Tests

Ginnie Mae this week provided new details to the long-anticipated plan for increased issuer net worth and liquidity and a new performance scoring method for issuer activity – changes that could adversely affect small issuers and portfolio servicers. In remarks at the Mortgage Bankers Association’s annual convention in Las Vegas, Ginnie Mae President Ted Tozer said the changes are part of a larger effort to ensure the continuing flexibility and availability of the agency’s mortgage-backed securities program to as many entities as possible. New types of issuers and counterparties have entered the agency-backed MBS market in the wake of the financial crisis, which called for adjustments and tailored approaches to the evolving housing finance market, Tozer noted. Tozer said both policy changes and staff expertise will ensure the success of ...


October 24, 2014 - Inside Nonconforming Markets

Ocwen Faces Intense Scrutiny from NYDFS

The New York Department of Financial Services has found serious issues at Ocwen Financial, including the backdating of “potentially hundreds of thousands” of letters to borrowers, the NYDFS said in a letter to the nonbank servicer released this week. The allegations could be the most damaging yet for Ocwen, which has faced concerns from the NYDFS since February when Ocwen placed a planned $39.2 billion mortgage acquisition on indefinite hold in an effort to resolve issues raised by the agency ...


October 24, 2014 - IMFnews

What We’re Hearing: More Questions About Wingspan but No Answers / Are Specialty Servicers Toast? / Should Ocwen Move Its India Workers to Upstate New York? / Mortgage Company Owner Wants to Buy Baseball Team

Note to Ocwen management: every US employee is a potential mortgage customer. Think about it.


October 23, 2014 - IMFnews

Wingspan Gets ‘Multi-Million’ Capital Infusion, Horne Out as President

As part of the transaction, company founder and president Steven Horne will step down as president and chief executive officer, but will remain as a senior advisor.


October 24, 2014 - IMFnews

Guild Mortgage Buys Second Lender Within Almost a Month

Guild intends to buy even more mortgage companies. Is an IPO next?


October 24, 2014 - IMFnews

Now the States Want to Develop Capital Standards for Nonbank Servicers

The new nonbank task force includes representatives from nine state regulators, including the New York Department of Financial Services where Benjamin Lawsky is the superintendent.


October 23, 2014 - Inside Mortgage Finance

Plenty of Investors are Eyeing the Non-Agency Space – Even PIMCO

Even though the origination volume of non-agency, non-jumbo mortgages is relatively small, private equity firms increasingly are eyeing the space, believing that within two years – or maybe sooner – the business could be producing out robust profits. In short, investors want to enter non-agency lending before anyone else does – and at “ground level” prices. According to non-prime executives and investment advisors, private-equity funds of varying sizes want...


October 23, 2014 - IMFnews

Short Takes: A ‘Troubling’ Corporate Culture at Ocwen? / IMA Launches Crowd-Funding Unit / Massachusetts Loses Foreclosure Battle with GSEs / Reverse Stock Split for Mortgage REIT

Interactive Mortgage Advisors has launched RealPartner.com, a crowd funding platform giving accredited investors access to performing residential mortgages...


October 23, 2014 - IMFnews

Ocwen Shareholder: Investors Have Been ‘Smoked,’ Will OCN Be Forced to Sell MSRs?

One servicing analyst told IMFnews that if Ocwen continues to get downgraded on its servicer ratings it could be forced to sell MSRs and/or post additional capital.


October 22, 2014 - IMFnews

Wells’ Sale of $39 Billion in MSRs to Ocwen Imperiled; A $14 Stock?

Ocwen said it has fixed the "back-dating" problem but it may be too late for the company.


October 22, 2014 - IMFnews

Short Takes: Who Might Guaranteed Rate Buy? / RPM Eyes Two More Lenders / A Non-QM IPO Already? Really? / Fitch Upgrades Shellpoint on Servicing / New Appraisal Tool From Fannie Mae / More Trouble for Nonbanks and MSRs?

We even heard one report that a non-QM firm is contemplating an initial public offering. It sounds crazy, we know…Meanwhile, it appears the states want a say in MSR transfers...


October 22, 2014 - IMFnews

GSE Shareholders Look to Iowa Federal Court to Vacate DC Judge’s Dismissal

An investor in GSE stock, Continental’s counsel in the case is Cooper & Kirk, the same law firm that represents Fairholme, a large hedge fund that bought up GSE stock last year.


October 22, 2014 - IMFnews

Flagstar Boosts Originations by 21 Percent, but CFPB Settlement Hammers 3Q Results

However, there was some good news. Flagstar reported residential originations of $7.19 billion, a 21 percent gain from 2Q.


October 22, 2014 - IMFnews

First Republic, Chase Team Up on Unique New Jumbo MBS

The new jumbo security from JPMorgan Chase is scheduled to be issued on Oct. 30.


October 21, 2014 - IMFnews

Ocwen’s Stock Plunges After NYS Levies More Allegations Against the Firm

At press time, the firm’s share price was getting crushed, down 25 percent on the day to a new 52-week low of $19.89.


October 21, 2014 - IMFnews

Short Takes: MBA Shows the Love for FHFA’s Mel Watt / Looser Mortgage Credit? Are You Crazy? / The CFPB ‘ePilot’ Moves Closer / The Fear of Running Out of Money / Are You Afraid of Ghosts?

After all, didn’t America suffer a housing “depression” because credit was too loose? Some GOP conservatives in Congress live by the edict: those who can own; those who can’t rent…


October 20, 2014 - IMFnews

FHFA Chief Floats Initiatives Tied to Looser Credit: More Buyback Relief and Higher LTVs

In defining misrepresentations, FHFA will set a minimum number of loans that must be identified with one of the six trigger elements.


October 20, 2014 - IMFnews

Short Takes: Will FHFA’s Mel Watt Deliver the Goods? / Actually, Fannie is Buying 97 Percent LTV Loans, But… / IBM Gets Whacked / First Republic’s GOS / Quicken CEO Sworn in at MBA Show

What does IBM have to do with the mortgage business? Actually quite a bit, IBM is one of Fannie Mae’s largest technology vendors...


October 20, 2014 - IMFnews

A New Player in Mortgage M&A: Mid-sized Commercial Banks

Charbonneau, Klein and other advisors report that mortgage M&A activity is the strongest it has been in years.


October 20, 2014 - IMFnews

Phoenix Capital and IMA Unveil New MSR Auctions

Servicing brokers expect a land rush of servicing deals before yearend.


October 17, 2014 - Inside Mortgage Trends

Distressed Mortgage Investor Touts Benefits

American Homeowner Preservation, a hedge fund that invests in distressed mortgages and helps some borrowers with loan modifications, said it proves distressed mortgage sales can be “preservative and profitable.” Officials at AHP said the fund has now helped more than 500 distressed borrowers avoid foreclosure via loan modifications. Investors in AHP also earn strong returns from the firm’s purchases of distressed mortgages. AHP started as a nonprofit in 2008, buying short sales ...


October 17, 2014 - IMFnews

What We’re Hearing: MBA Turns a ‘Profit’ Again / About that MBA Office Building / The State of the Mortgage Union / The Era of Non-QM Starts Right Now / No Clarity From Wingspan / Ellie Mae’s Sky High P/E Ratio / Yet Another Departure From Nationstar Mortgage

Bill Dallas, who runs Skyline Lending, told us he believes the “new” non-agency movement is beginning right now. “Today, we‘re doing 90 percent agency,” he said. “In 2017 the ratio will be 60 percent agency.”


October 17, 2014 - Inside MBS & ABS

Limited in Its Authority, CFPB Criticizes Student Loan Securitization, Incentives and Servicing

The Consumer Financial Protection Bureau was critical this week of aspects of the student loan securitization process as well as servicer performance as it issued its latest annual report on private student-loan borrowing. The report analyzed more than 5,300 private student loan complaints between Oct. 1, 2013, and Sept. 30, 2014, an increase of 38 percent over the previous year. “Lending practices in the private student-loan market in the years preceding the financial crisis shared...


October 17, 2014 - IMFnews

Judge Won't Give Former Fannie CFO Access to Documents in Hedge Fund Case

Government attorneys sought to block Howard’s access on the grounds that he owns Fannie shares and would be biased.


October 16, 2014 - Inside Mortgage Finance

Layoffs Hit ‘Specialty Servicers’ Wingspan And RCS: Has This Niche Market Peaked?

Thanks to rapidly improving delinquency rates and real estate values, the bloom appears to be off the rose for specialty servicers that built their business on processing delinquent and high-touch mortgages that are guaranteed by Fannie Mae, Freddie Mac and the FHA. Over the past month, layoffs have plagued both Wingspan Portfolio Services, Dallas, and Residential Credit Solutions of Fort Worth, TX. Moreover, industry officials who work in the servicing sector believe...


October 16, 2014 - Inside Mortgage Finance

State Regulators Propose Major Expansion Of Data Collection for Lending, Servicing

State regulators recently proposed expanding the data that state-licensed lenders must report on the Nationwide Mortgage Licensing System and Registry’s mortgage call report. The State Regulatory Registry said the data help state regulators supervise licensees, determine examination schedules, monitor compliance and calculate assessments. The SRR was established by the Conference of State Bank Supervisors and the American Association of Residential Mortgage Regulators. The SRR owns and operates the NMLS and has required state-licensed lenders to submit quarterly call report data since 2011. On Oct. 1, the SRR proposed...[Includes one data chart]


October 16, 2014 - IMFnews

Short Takes: Short Sellers Target Walter / But Walter Gets a Disclosure Exemption / Will QRM be Aligned with QM? We’ll Know Next Week / NTC Finds Flaws in Servicing Records / DocMagic Makes an Acquisition

More trouble for Walter Investment Management? Meanwhile, according to NTC, as many as 490,000 homeowners could be affected by faulty servicer database records.


October 16, 2014 - IMFnews

Is Pershing Square Still Buying More Stock in Fannie and Freddie?

According to one analyst, "Ackman is reloading the boat with the extra cash he has on hand. Hopefully, others will join him.”


October 16, 2014 - IMFnews

Zombie Woof: Thanks to Lingering ‘Legacy’ Issues, GSE Buybacks Spiked in 2Q

In fact, nearly a fifth of the repurchases involved loans sold to the GSEs by Lehman Brothers or its related mortgage businesses.


October 15, 2014 - IMFnews

Five Oaks Sees Promise in Aggregating Jumbos, Buying Subordinate Portions of MBS

REITs have seen mixed results in the past year when aggregating jumbos for MBS and buying a subordinate portion of the securities.


October 15, 2014 - IMFnews

Bank of America 3Q Mortgage Results: Originations Rise but Layoffs Ensue

Bank of America blamed the layoffs on “continued reductions” in its legacy mortgage business “as well as actions taken in sales and fulfillment as refinance demand slowed.”


October 14, 2014 - IMFnews

Short Takes: Walter Joins the ‘New Low’ Club / When Will the ‘Dark Days’ End for the Public Nonbanks? / ETA on Wingspan Announcement? / MBA Wants Faster Action on a Single Security / In MI We Trust

Specialty servicer Wingspan is expected to issue a press release this week, providing some clarity about a change of control at the company and the future of its founder...


October 14, 2014 - IMFnews

Walter Reveals Additional Scrutiny on its Servicing Practices; It Met With AGs

The $17 million reserve will be booked as part of Walter's third quarter earnings.


October 14, 2014 - IMFnews

Is Wells Fargo Losing its Origination Mojo?; 3Q Fundings Almost Flat

Compared to the same quarter a year ago, residential originations fell 40 percent at Wells. At JPM the downdraft was even worse...


October 13, 2014 - Inside the CFPB

Consumer Complaints Again Fall By Double Digits in Third Quarter

After a rough first quarter in which consumer complaints filed with the CFPB rose by 29.1 percent (mostly because of credit reports), the second and the third quarters have seen double-digit declines, 14.8 percent in 2Q14 and 14.6 percent in 3Q14, according to a new analysis by Inside the CFPB. Of the nine categories of gripes tracked, seven showed declines, all by double digits, with the money transfer sector leading the drop-off, down 28.4 percent from the second quarter. Debt collection criticisms slid 20.5 percent, followed by mortgages (17.6 percent), bank accounts (15.4 percent), student loans (14.5 percent), credit cards (12.1 percent) and credit reports (10.0 percent). The two rough spots were grievances about consumer loans, which were up 28.4 percent [with two exclusive data charts] ...


October 13, 2014 - Inside the CFPB

Legal Experts Vary in Opinion of Bureau’s UDAAP Action on Flagstar

The CFPB’s recent, high-profile $35 million enforcement action against Flagstar Bank over its mortgage servicing practices got the attention not only of the industry but also many legal professionals serving it. One industry legal expert, speaking off the record, said it was heavy handed, at best, for the CFPB to use its authority over unfair, deceptive or abusive acts or practices (UDAAP) to assert legal claims over activities that took place prior to its servicing rule. “It somewhat makes a mockery of the whole rulemaking process by effectively implementing regulations before the regulations were even proposed, much less finalized,” he said. “It also reinforces the fear of making loans to any borrower who presents any risk of default because there ...


October 13, 2014 - IMFnews

Short Takes: Is Ocwen Under Valued? / Did Ross Sell Homeward at the Peak of the Market? / The Dream: A Reduction in FHA Premiums / Faye Servicing Gets Servicer Approvals / Mortgage Network Hires Former Countrywide Official

The Community Home Lenders Association has asked new HUD secretary Julian Castro for a “meaningful reduction” in the FHA’s annual premiums…


October 13, 2014 - IMFnews

MBA Wants to Reopen the Debate on Basel III Cap for MSRs; 50 Percent for Thrifts?

One forensic accountant said of the matter: “Basel basically treats MSRs as a toxic asset. It’s a huge topic.”


October 10, 2014 - Inside FHA Lending

Around the Industry

FHA to Extend Short Refi Program. The FHA has announced its intent to extend its Short Refinance Program for borrowers in negative equity positions. A mortgagee letter will be issued soon to announce the extension. Feedback Period extended for Draft Servicing Section of Proposed Single Family Handbook. The FHA is extending the comment period for the draft servicing section of the Single Family Housing Policy Handbook through Nov. 14, 2014 to allow stakeholders additional time to study and comment on the proposed section. The original deadline date was Oct. 17. CFPB Updates Reverse Mortgage Guide. The Consumer Financial Protection Bureau recently updated its reverse mortgage guide on its website to account for recent changes made by the Department of Housing and Urban Development to its Home Equity Conversion Mortgage program. The updated guide highlights new limits to ...


October 10, 2014 - Inside FHA Lending

Millennial Agenda Underscores FHA’s ‘Blueprint’

President Obama this week released his agenda for creating economic opportunity for millennials, including greater access to mortgage credit through FHA. While the economy has recovered and there has been some improvement in the housing market, millennials are on a much slower pace toward homeownership than previous generations, the president said. Many are in rental housing, ready to become homeowners but are locked out by the tough, restrictive lending environment, he added. Millennials – identified as those born between 1982 and 2004, also known as Generation Y – are finding it harder to purchase homes because of lender overlays, high mortgage insurance premiums and high downpayment requirements. It also has been difficult for anyone with a credit score below 680 to obtain a purchase-mortgage loan. In his agenda, Obama expressed concern over the ...


October 10, 2014 - Inside FHA Lending

OIG Calls for HUD Action Versus Errant Lenders

The Department of Housing and Urban Development’s Inspector General has recommended that HUD require an approved FHA lender to reimburse the FHA $1.6 million for improper claims on 11 preforeclosure sales, including lender and borrower incentives. An IG audit of EverBank of Jacksonville, FL, attributed FHA’s losses to the bank’s failure to determine whether or not defaulted borrowers qualified for the agency’s preforeclosure sale program. The IG looked into the bank’s short sale activities because it had the highest preforeclosure sale claims in Florida. More than 50 percent of EverBank’s FHA claims were from short sales, with more than $12.9 million paid from 2011 through 2013, the audit found. In response, EverBank questioned the accuracy of the IG report. The bank maintained that certain allegations do not constitute violations of ...


October 10, 2014 - Inside FHA Lending

HUD-OIG Reports $582M in Recoveries for MMIF

The Department of Housing and Urban Development’s Office of the Inspector General has announced a total of $581.8 million in recoveries in September to strengthen and stabilize the ailing Mutual Mortgage Insurance Fund. The recovered amounts are part of larger settlements between the federal government, U.S. Bank and Bank of America to resolve allegations of false claims and mortgage fraud in relation to FHA-insured mortgages. Both banks were investigated separately by the HUD-OIG, Department of Justice and U.S. attorneys’ offices in Michigan, Ohio and New York in connection with their lending and underwriting practices and quality-control programs for FHA-insured loans. On June 30, U.S. Bank entered into a settlement agreement to pay $200 million, of which nearly $144.2 million went to the MMI Fund. The bank admitted to poor underwriting, flawed quality control and ...


October 10, 2014 - IMFnews

What We’re Hearing: Ocwen Feels the Pain / Investors Bolt Ocwen / What Happens When You Don’t Originate Enough Loans / Steven Horne of Wingspan – Is He In or Out? / HUD IG Says, ‘Hey Look What We Did’

Ocwen faces a dilemma. It has a gargantuan MSR portfolio but meager loan production. At some point, something has to give…


October 10, 2014 - IMFnews

MountainView’s Push Into Non-QM Will be Modest at First

MountainView is being careful not to have its maiden voyage in non-QM lending labeled as subprime.


October 10, 2014 - IMFnews

It’s Back – Again: San Francisco Ponders Eminent Domain and Mortgages

Just when you thought the eminent domain story was dead, it's not.


October 10, 2014 - IMFnews

How About an ‘Administrative Solution’ to the Fannie/Freddie Dilemma?

Here's a fact that most readers may not know: the Housing and Economic Recovery Act of 2008 grants the FHFA the authority to bring Fannie Mae and Freddie Mac out of conservatorship.


October 9, 2014 - IMFnews

Short Takes: One More Sip From the Refi Grapes? / Auction.com Will Finance RE Investors / Wells Settles Lending Discrimination Case with HUD / IG Says FHFA Could Spruce Up its Recordkeeping / FHFA’s Watt Gets a New Chief of Staff

Another refi boomlet? One Long Island-based mortgage executive told us this: “Locks doubled from the day before and are up 30 percent over the previous 10 days”…


October 9, 2014 - Inside Mortgage Finance

MBA Sets Up Task Force to Reopen Debate On Basel III and Its Impact on MSR Market

The Mortgage Bankers Association is on a mission to convince banking regulators to revisit the Basel III capital standards and to change the cap on how much mortgage servicing rights can count toward Tier I capital. The way things stand now, MSRs will be capped at 10 percent of capital when the rule is fully phased in, with the excess deducted from a depository’s “common equity.” Previously, the cap was 100 percent. In a draft letter to the Federal Reserve, the Federal Deposit Insurance Corp. and the Office of the Comptroller of the Currency, the MBA argues...


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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