Mortgage Servicers

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

July 3, 2015 - Inside Mortgage Trends

Specialty Servicers Slowed by Fewer Delinquencies

Two weeks ago, specialty servicer Wingspan Portfolio Services shuttered its Melbourne, FL, office, leaving 150 servicing workers without a job. But more bad news may be on the way for the once fast-growing “contract” servicer. According to industry officials close to the company, the privately held Wingspan is in need of new contracts – badly. …

July 3, 2015 - Inside Mortgage Trends

Nonbank Share of Servicing Nowhere Near Peak

Mortgage regulators have sounded alarms and written new rules in response to the growing market share of nonbanks in the servicing market, but nonbank servicers were much more dominant 10 years ago. At the end of 2005, nonbanks accounted for 40.6 percent of mortgage servicing outstanding at the time. At the end of March 2015, nonbanks were making headlines because they had a combined 27.3 percent share of the market. …

July 3, 2015 - Inside MBS & ABS

Mayors Call on HUD, GSEs to Stop NPL Sales to Wall Street

The U.S. Conference of Mayors has joined a growing number of entities urging the Department of Housing and Urban Development, Fannie Mae and Freddie Mac, and certain major banks to stop selling distressed and nonperforming mortgages to Wall Street investors. Rather than sell pools of NPLs to private-equity firms, hedge funds and other speculators, sell them to qualified nonprofits for the purpose of saving homes from foreclosure and creating affordable housing, the group stated in a resolution co-sponsored by 17 mayors. The mayors point to a joint study issued recently by the Center for Popular Democracy and the ACCE Institute. The study said most NPL pools are auctioned off at steep discounts to hedge funds and private-equity firms. “Although Fannie and Freddie have been unwilling to offer principal reduction to struggling homeowners, they often offer steep discounts when they ...

July 3, 2015 - Inside The GSEs

G-Fee Report Highlights Gap Between 30- and 15-Year Loans

Guaranty fees as a whole have more than doubled since 2009, from 22 basis points to a record high of 58 bps in 2014, said the Federal Housing Finance Agency in a report released this week analyzing the fees. The 58 bps includes 15 bps of upfront loan-level pricing adjustments and 43 bps as part of an “ongoing fee.”Fees also jumped year-over-year as they were at 51 basis points in 2013. Two FHFA-directed increases in 2012 are the primary drivers for the sizeable increase from 2011, when the average fee was 26 bps, then rose in 2014. Higher fees have been met with strong resistance from originators...

July 2, 2015 - IMFnews

Short Takes: More Servicing Deals on the Way? / Another Top Executive Departs Wingspan? / BofA Gaining on Wells? / Impac Gets a Line of Credit / Ex-Lenders One Chief Lands at Embrace

Wells Fargo was the top seller to Freddie Mac in 2Q with $12.6 billion, according to newly compiled figures from Inside Mortgage Finance, but BofA was a somewhat close second...

July 2, 2015 - IMFnews

PIMCO Looking at Buying a Mortgage Company?

As the holiday weekend approached, representatives from PIMCO's media department had not returned telephone calls and emails on the matter.

July 2, 2015 - Inside Mortgage Finance

Servicers Large and Small Oppose Plan by States To Impose Capital Requirements on Nonbanks

Capital requirements and standards proposed by state regulators for nonbank servicers appear to be unnecessary, according to trade groups representing servicers. State regulators issued the proposal in March, seeking to ensure that nonbanks conduct their servicing operations in a safe and sound manner and have strong consumer protections in place. “It is not clear that nonbank mortgage servicers require a prudential regulatory regime,” a group of 37 state ...

July 2, 2015 - IMFnews

So, Is the FHA Still Sick or Not?

The report from Potomac Partners bears the good news about FHA...

July 1, 2015 - IMFnews

Short Takes: GSEs Hike LPMI Capital Requirements / Is LPMI Really Riskier? / The Trouble with Mortgage Co-ops and Free AU / Applications Wane / Hiring at NMI

The Consumer Financial Protection Bureau also is reviewing LPMI, but from a different angle: RESPA and the "discounting" of such policies…

July 1, 2015 - IMFnews

Big Pay Raises for Fannie and Freddie CEOs; How Does $4 Million a Year Sound?

A few years back, then FHFA Director Ed DeMarco cut the compensation of the CEOs as a response to lawmaker concerns.

July 1, 2015 - IMFnews

OCC: Banks Face $131 Billion of Resetting HELOCs

For most HELOCs, the OCC said the end-of-draw period means that monthly payments change from interest-only to amortizing...

June 30, 2015 - IMFnews

Green Tree Corrects Servicing Settlement Issues, Ocwen Still Under Investigation

Smith said his team has reviewed thousands of documents and interviewed at least nine Ocwen executives...

June 30, 2015 - IMFnews

RoundPoint Buyer Walks, Firm Still Open to Offers

According to figures compiled by Inside Mortgage Finance, at March 31, RoundPoint serviced $46.88 billion in home mortgages.

June 29, 2015 - Inside the CFPB

Dual Tracking Still a Problem Among Mortgage Servicers: CFPB

The CFPB’s latest supervisory report finds illegal mortgage servicing practices are still continuing in at least corners of the marketplace. According to the report, the bureau’s examiners found at least one servicer that sent notices of intent to foreclose to borrowers already approved for trial modifications. “This dual-tracking could mislead consumers to believe the servicer had abandoned the trial modification,” the CFPB said. Bureau examiners also found at least one servicer that, because of a system error, sent notices to borrowers who were current on their loans, saying that foreclosure would be imminent. There are also still problems with illegal runarounds with loss mitigation applications, according to the report. For example, examiners found at least one servicer requesting additional documents ...

June 29, 2015 - Inside the CFPB

Marketing in Spanish? Disclose, Service in Spanish, Experts Say

Here’s a fair lending regulatory compliance tip from the American Bankers Association’s 2015 regulatory compliance conference in Washington, DC: If you are advertising or marketing mortgage products in Spanish, you would be well advised to provide all requisite disclosures and servicing in Spanish. “As you think about how to reach people, advertising and marketing in Spanish is a good way to get to Spanish-speaking population,” said Andrew Sandler, chairman and executive partner at the BuckleySandler law firm, during a breakout session on fair lending. “But one thing regulators are intent on is, if you’re selling me in my language, then you need to be servicing me in my language too. So lenders should be careful to think about that,” the ...

June 29, 2015 - IMFnews

Short Takes: A Killer Quarter for Fannie and Freddie? / A Shrinking Market: Bad Loans / Turn, Turn, Turn Times / Stonegate’s Third-Party Loan Portal / New Hires for Mortgage Network, Ellie Mae

Why do loan turn times – application to closing – vary so much?

June 29, 2015 - IMFnews

After Hedge Fund Accumulates Large Stake, Walter Enacts ‘Poison Pill’ Language

In total, the Baker Street hedge fund now controls 8.4 million shares of Walter Investment Management, the parent company of Green Tree Servicing.

June 26, 2015 - Inside FHA/VA Lending

RHS Raises Upfront Guaranty Fee For SF Mortgages Effective FY2016

Rural borrowers will be paying a higher upfront fee for mortgage loans with a Rural Housing Service guaranty, the U.S. Department of Agriculture has announced. In an advance notice, the USDA said it will raise the upfront guaranty fee for loans originated under the RHS’ Single Family Housing Guaranteed Loan Program in FY2016. For purchase and refinance loans, the upfront guaranty fee will change from 2.00 percent to 2.75 percent of the loan amount. The annual fee will remain at 0.50 percent. The fee increase will apply to guaranteed loans obligated on Oct. 1, 2015, through Sept. 30, 2016, the USDA said. A loan is obligated when the USDA has approved a complete loan-application package and issued a conditional commitment for a single-family housing loan guarantee to the USDA lender. The new fee will apply to loan guaranty requests submitted to the USDA prior to Sept. 30, 2015, without a ...

June 26, 2015 - Inside FHA/VA Lending

Handbook FAQs Hold No Surprises, But More Guidance Expected

The frequently-asked-questions guidance to using the FHA’s consolidated Single Family Policy Handbook is good to have though it shows just how complicated the FHA’s mortgage origination process is, according to lenders. In fact, the updated FHA handbook could still be confusing to borrowers simply because a lot more information is concentrated in one source, lenders said. According to the FHA, the more than 290 FAQs will enable lenders to make operation adjustments before the handbook goes into effect on Sept. 14, 2015. The FAQs are for information purposes only and do not apply to current FHA policies. They do not establish or modify policy contained in the handbook. The FAQs reiterate information in the handbook under headings such as Credit Underwriting, Closing and Insuring, FHA System Support and Consumer Information. Industry observers noted that the FAQs did not ...

June 26, 2015 - Inside FHA/VA Lending

Taxonomy Gives Lenders a Glimpse Of How FHA Will Handle Defects

Clearer FHA guidance on loan defects may help lenders avoid problems but they do not provide legal protection against costly government false-claim lawsuits, according to mortgage industry stakeholders. Long-anticipated rules issued recently by the FHA explain how the agency intends to categorize loan defects identified during an individual loan-level review of endorsed single-family mortgages. The loan-defect assessment methodology or “defect taxonomy” was first unveiled in September 2014 as part of the FHA’s Blueprint for Access, which outlined steps the agency is taking to expand lending to underserved and first-time homebuyers. Combined with the updated loan-certification language used by lenders to warrant compliance with FHA rules and the new Single Family Policy Handbook, FHA plans to use the taxonomy to create a stronger quality assurance program. With better quality ...

June 26, 2015 - Inside FHA/VA Lending

VA Jumbo Securitization up in 1Q, 2 States Account for Over 55%

Ginnie Mae securitized $6.6 billion of VA jumbo loans in the first three months of 2015, up 15.9 percent from the prior quarter, according to an Inside FHA/VA Lending analysis of Ginnie Mae data. Jumbo loans – single-family mortgages with loan amounts exceeding $417,000 – comprised 18.7 percent of total VA originations in the first quarter. VA jumbo originations outpaced FHA jumbo production, which totaled $2.8 billion in the first quarter, up 17.0 percent from the prior quarter, according to the Inside Mortgage Finance database. VA jumbos in Ginnie mortgage-backed securities issued in the first quarter included modified VA loans as well as those originated in Alaska, Guam, Hawaii and the U.S. Virgin Islands. Wells Fargo ranked first among securitizers of VA jumbos in the first quarter, with $1.3 billion in production. Second-ranked Freedom Mortgage conveyed $652.7 million in ... [ 1 chart ]

June 26, 2015 - Inside Nonconforming Markets

Ocwen’s Servicing at Risk Due to Downgrade

Downgrades by Standard & Poor’s to numerous servicer ratings for Ocwen Financial could have a significant impact on the nonbank’s servicing operations. The rating service downgraded servicer ratings for Ocwen to “below average” last week, citing continued scrutiny by investors and regulators along with concerns about internal audits at Ocwen. As of the end of the first quarter of 2015, approximately 700 of the 4,100 non-agency servicing agreements handled by Ocwen had criteria regarding minimum servicer ratings ...

June 26, 2015 - Inside Nonconforming Markets

Variety Seen in Jumbo Underwriting Standards

While the characteristics of loans included in jumbo mortgage-backed securities continue to be strong overall, industry analysts note that there are significant differences in “soft” underwriting guidelines used by lenders. “Not all underwriting guidelines, and exceptions to guidelines, are created equal,” analysts at Morningstar Credit Ratings cautioned in a recent report. “Some originators recently have introduced programs that make qualifying for financing easier and require less income documentation.” The company, which is making a new push to rate jumbo MBS, reviewed the guidelines of a number of the most active jumbo originators and aggregators ...

June 26, 2015 - Inside Nonconforming Markets

Nonbank Servicers Oppose State Plan to Set Capital Requirements, Standards

Mortgage industry groups say a proposal from the Conference of State Bank Supervisors to establish capital requirements and other standards for nonbank servicers is unnecessary for an industry that’s already heavily regulated. State regulators proposed the standards in March due to concerns about exceptional growth in recent years by Ocwen Financial, Nationstar Mortgage and other nonbanks ...

June 26, 2015 - IMFnews

What We’re Hearing: Lowering the Boom on LPMI? / Ex-Goldman Sachs MGDs In Love With Subprime? / Leaving Mortgages for Weed / PIMCO’s Non-Agency MBS Plans / Industry Vet Mike McMahon Retires

Former Goldman Sachs officials sure like the nonprime mortgage space. (It's all about yield.)

June 26, 2015 - IMFnews

Bank Use of Principal Reduction Loan Modifications Spiked in First Quarter

The eight banks tracked by the OCC’s Mortgage Metrics report – including Wells Fargo and JPMorgan Chase – completed 7,571 principal reduction mods in the first quarter...

June 25, 2015 - Inside Mortgage Finance

Noncompliance With OCC Consent Order Prompts Harsh Servicing Restrictions for Wells

The Office of the Comptroller of the Currency announced last week that six banks subject to servicing-related consent orders established in 2011 will face new restrictions because the banks haven’t met all of the requirements in those orders. The restrictions were particularly harsh for Wells Fargo, the industry’s largest servicer. Wells handled $1.72 trillion in servicing as of the end of the first quarter of 2015, accounting for 17.5 percent of the servicing market, according to Inside Mortgage Finance. Until the consent order is terminated by the OCC, Wells will be prevented...

June 25, 2015 - IMFnews

Short Takes: What Are Pingora’s MSRs Worth? / Bank of America’s ‘Dealmaker’ / Pingora’s Liquidity Machine / Fitch Goes Nice on Ocwen / SCOTUS Ruling Ugly for Lenders?

Pingora's Michael Lau was a key person in Bank of America’s massive servicing sales three years ago…

June 25, 2015 - Inside Mortgage Finance

As Basel III Capital Requirements Start to Take Effect, Largest Impact Seen on Smaller Banks

Basel III capital requirements for mortgage servicing assets started to take effect in the first quarter of 2015, with full implementation slated for 2018. Smaller banks were impacted by new servicing capital rules much more so than larger banks in the first quarter, according to industry analysts. Previously, a bank’s servicing could contribute up to 50 percent of a bank’s total capital. Under the new Basel framework, mortgage servicing assets are limited to 10 percent of a bank’s common equity Tier 1 capital. MSA in excess of the 10 percent threshold must be deducted from common equity. “Despite the fact that changes to servicing capitalization have been telegraphed to the market as early as 2010, a disproportionate number of small banks appear...

June 25, 2015 - Inside Mortgage Finance

Mortgage M&A: RoundPoint Buyer Walks; PMAC Employees Move to Blackstone, But Is It a ‘Sale’?

The sale of RoundPoint Mortgage Servicing has fallen apart with the bidder walking away from the table, according to industry advisors close to the transaction. Sources indicate that Tavistock Group, the owner of the nation’s 24th largest servicer, still has an interest in finding a buyer for the servicer/lender, but for now no deal is imminent. Tavistock bills itself as an international private-equity firm with a strong interest in finance, real estate and other sectors. The firm is headquartered in the Bahamas. An advisor close to the transaction declined...

June 25, 2015 - Inside Mortgage Finance

QM ‘Patch’ for Fannie and Freddie Has Opened GSE Market for $133 Billion in Additional Business

The Consumer Financial Protection Bureau boosted Fannie Mae and Freddie Mac business by some $132.9 billion when it gave the two government-sponsored enterprises a free pass on the debt-to-income ratio requirements of the qualified-mortgage rule. For the non-agency world, a qualified mortgage has to have a DTI ratio of 43 percent or less. While the government-insured market has its own QM rules that effectively ignore DTI, a loan eligible for sale to the GSEs is considered a qualified mortgage if it meets all the QM criteria – such as no interest-only payments – other than the DTI cap. From the beginning of 2014 through the end of the first quarter of this year, about 16.3 percent of the loans securitized by Fannie and Freddie had...[Includes two data tables]

June 25, 2015 - IMFnews

Hatteras to Buy Rapidly Growing Pingora, but Won’t Obtain ‘Existing’ MSRs

The sale is expected to close in late August or September and requires the approval of Fannie Mae, Freddie Mac and Ginnie Mae, among others.

June 25, 2015 - IMFnews

MBA Pushes Back on Capital Requirements for Nonbank Servicers Proposed By States

The MBA took particular aim at the proposed enhanced standards for large nonbank servicers, noting that such firms are already subject to extensive regulation from the GSEs and others.

June 24, 2015 - IMFnews

Short Takes: Baker Street Likes Walter / A Share Price Rebound / BKFS: Delinquencies and Foreclosures Rise / Another Departure at Flagstar / More Trouble for Wingspan

Flagstar is losing its chief legal officer...

June 24, 2015 - IMFnews

CFPB: Dual-Tracking on Troubled Borrowers Still a Problem

“We are extremely concerned that, one year after the CFPB’s mortgage servicing rules went into effect, we are still finding runarounds and illegal dual-tracking,” said agency Director Richard Cordray.

June 24, 2015 - IMFnews

Slip Sliding Away: Home Mortgage Debt

Sometimes lost in the hoopla over the rising nonbank share of mortgage servicing is that banks have fallen in and out of love with the servicing market for decades.

June 23, 2015 - IMFnews

Short Takes: More Relief from FHA? / Another Mortgage Co. Purchase by Blackstone? / MBA Less Bullish About 2016 / CFPB Unearths Dual-Tracking / A New Prez for Flagstar’s Mortgage Unit

Apparently, the Blackstone Group recently closed on yet another mortgage company purchase...

June 22, 2015 - IMFnews

Fannie Mae Planning a Dallas Downsize

Fannie Mae is looking to reduce its footprint in the Dallas region as the number of mortgage delinquencies continues to decline. The GSE’s southwestern regional office at the International Plaza II includes more than 400,000 square feet of office space spread out among three buildings.

June 22, 2015 - IMFnews

GSE Buybacks Slow, Most Cases End in Seller’s Favor

A relatively small – even microscopic – percentage of loans securitized by Fannie Mae and Freddie Mac in the past three years have been subject to a repurchase demand, according to a new Inside Mortgage Trends analysis.

June 19, 2015 - Inside The GSEs

Freddie: Credit Quality Improved, Names Tope 3 Loan Defects

Credit quality has improved over the last two years, according to Chris Mock, vice president of single-family quality control for Freddie Mac, but there is still plenty of room for improvement. These days he said the top three common defects are missing documentation, insufficient funds to close, and insufficient income. “The first one is we are unable to calculate income and match it to the income the lender calculated on the loan file,” he said in an interview with Inside The GSEs. “And that one is mainly driven by documentation that is missing when the customer sends us a file.” Mock said that Freddie shares a list of the top 10 missing documents with lenders...

June 19, 2015 - Inside MBS & ABS

Ginnie Mae Embarks on Multi-Year Effort to Improve, Modernize Management of Loan Docs

Ginnie Mae this week announced plans to reform its document-custody policies as part of a long-term effort to modernize the way it manages documents in order to minimize agency risks. Michael Drayne, Ginnie’s senior vice president of issuer and portfolio management, said the updates and improvements will apply to loan documents that serve as collateral for securitized pools of mortgages. Ginnie will follow...

June 19, 2015 - Inside MBS & ABS

Concerns Raised About the Stop-Advance Feature Redwood Is Including in Its New Jumbo MBS

Redwood Trust is preparing to issue its second consecutive jumbo MBS that includes a new stop-advance feature. While officials at the real estate investment trust said the feature has been well received by AAA investors, Fitch Ratings warned late last week that it introduces some risks to deals. The stop-advance feature being used by Redwood prevents servicers from providing advances of principal and interest on loans that are 120+ days delinquent. The feature was first used on the $356.45 million deal Redwood issued in April and is set to be included in a pending $343.21 million jumbo MBS from the issuer. Fitch didn’t rate...

June 18, 2015 - Inside Mortgage Finance

California Court Finds Governor Brown Illegally Tapped State’s Mortgage Settlement Coffer to Plug Budget Holes

A California superior court last week ruled that Gov. Jerry Brown, D, illegally diverted more than $331 million from a landmark mortgage settlement fund to resolve a state budget deficit. The funds represented California’s share in the historic 2012 national mortgage settlement between federal enforcement agencies and 49 state attorneys general and the nation’s five largest mortgage servicers – Wells Fargo Bank, Bank of America, JPMorgan Chase, Citigroup and Ally Financial. The banks paid...

June 18, 2015 - Inside Mortgage Finance

QM Is Only Working Because of the GSE Crutch; Lenders Hobbling Forward With New Products

The only thing that kept the qualified-mortgage rule from devastating mortgage production was the temporary loophole that allows Fannie Mae, Freddie Mac and the government-insurance programs to treat loans with debt-to-income ratios above 43 percent as QMs, an industry official said. “Many have referred to QM as the Y2K moment for mortgages: nothing happened. We all thought this thing was going to implode. And yet there wasn’t too much of a glitch,” said Rod Alba, senior regulatory counsel at the American Bankers Association, during the ABA’s annual regulatory compliance conference in Washington, DC, this week. “At the macro level, that’s...

June 18, 2015 - Inside Mortgage Finance

Servicing Market Shrank Again in Early 2015 While Nonbanks Expanded Their Share of the Business

The outstanding supply of home mortgage debt – even what had been the fastest-growing sector of the market – ebbed in the first quarter of 2015. The Federal Reserve late last week reported the supply of home mortgage debt outstanding fell to $9.855 trillion as of the end of March. That was down 0.3 percent from December 2014 and reversed a modest expansion of the servicing market over the second half of last year. While banks, thrifts and credit unions managed...[Includes two data tables]

June 18, 2015 - IMFnews

Short Takes: Fed on Interest Rates / Loan Mods Increase / Foreclosure Filings Also Increase / New MBS Backed By Old Alt A Loans

The FOMC said it will increase rates when it sees further improvement in the labor market and inflation looks to be under control.

June 17, 2015 - IMFnews

OCC Places Servicing Restrictions on 6 Banks, Including Tough Provisions for Wells Fargo, HSBC

The revised consent orders include limitations on the acquisition of mortgage servicing rights outside of the banks' own originations and limitations on outsourcing servicing functions.

June 15, 2015 - Inside the CFPB

Worth Noting

Industry Groups Urge Restructuring of CFPB. Wading into risky political territory, a number of industry groups last week urged Congress to support H.R. 1266, legislation that would revamp the governing structure of the CFPB. Submitting a statement for the record to the House Financial Services Subcommittee on Financial Institutions and Consumer Credit, the industry groups said consumers and the industry would be better served by changing the CFPB governance structure from a single director to a bipartisan five-person commission as used by other federal agencies. “The CFPB has tremendous authority to supervise a multi-trillion dollar industry, which as we have learned, can have incredible ramifications on our economy,” the statement said. “As such, it is imperative the CFPB remain stable ...

June 16, 2015 - IMFnews

Federal Regulators Set to Issue Final Rule Regarding Flood Insurance Requirements

The final rule approved by the FDIC requires escrows for flood insurance to be implemented on a “tripwire” approach.

June 15, 2015 - IMFnews

Short Takes: VA Market Share Trends / Ocwen Receives Termination Notices / Negative Equity Share Declines / eHarmony for Mortgages?

The VA maintained a sizeable lead in first-lien mortgage refinancing over FHA and private mortgage insurers in the first quarter of 2015 but yielded to both in purchase originations.


A lot has been written about the ‘Millennial Generation’ being key to the future of the housing/mortgage market, but how much of your mortgage workforce includes Millennials – those born roughly between the years 1980 to 1999?

Less than 10 percent
11 to 30 percent
Greater than 30 percent
It’s so small we can’t even measure it.
We’re tired of reading about how important Millennials are…

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