Mortgage Servicers

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

June 24, 2016 - IMFnews

What We’re Hearing: Mortgage Lenders to England: Thanks for Igniting Another Refi Boom / Servicers Cringe? Maybe Not / Brexit, Plunging Rates and the GSE ‘Hedging’ Issue / More on a Possible FHA MIP Cut / Capsilon Gets Investment from PE Firm

What does the Brexit vote for Fannie Mae and Freddie Mac? Hedging losses, maybe?

June 24, 2016 - Inside MBS & ABS

U.S. Court Shifts Discovery Obligation to MBS Plaintiff, NY Court Denies JP Morgan, ACLU in MBS Case

A federal appeals court in New York this week will hear arguments from African-American subprime borrowers in Detroit in connection with a proposed class action challenging Morgan Stanley’s mortgage securitization practices during the subprime mortgage boom. The American Civil Liberties Union and its partners are seeking class-action status for the borrowers’ Fair Housing Act claims, which were initially rejected by a lower court. The court previously ruled that each borrower would have to sue on his or her own. The issue on appeal at the U.S. Court of Appeals for the Second Circuit is...

June 24, 2016 - Inside MBS & ABS

FDIC Revises Securitization Safe-Harbor Rule to Jibe With CFPB Mortgage Loan Servicing Requirements

The Federal Deposit Insurance Corp. this week revised its securitization safe-harbor rule to clarify loss mitigation standards for mortgage servicers to synchronize it with the similar requirements issued by the Consumer Financial Protection Bureau. The FDIC safe-harbor rule sets standards under which the agency will not attempt to capture assets of a failed bank that are transferred to qualifying securitizations. Under the previous rule, servicers of residential mortgages backing MBS that enjoy safe-harbor status were required to take loss mitigation action within 90 days after the loan becomes delinquent. In January 2013, the CFPB adopted...

June 24, 2016 - Inside MBS & ABS

New Concerns Arise About Nonbanks’ Ability To Meet Ginnie Mae MBS Servicing Advances

Ginnie Mae is once again getting anxious about the growing – and large – presence of nonbanks that service the agency’s MBS, fearing a liquidity crisis could erupt because some firms rely too heavily on “non-traditional and very sophisticated funding mechanisms.” In a statement issued to Inside MBS & ABS this week, Ginnie contrasted nonbanks to depositories “who traditionally were the primary issuers of Ginnie Mae MBS.” The agency added...[Includes one data table]

June 23, 2016 - Inside Mortgage Finance

Slow Judicial Foreclosure Process Seen as Helping To Prevent Housing-Price Bubbles in Certain States

The slow foreclosure timelines in states with a judicial foreclosure process appear to have a silver lining: home-price bubbles are more prevalent in other states, according to Fitch Ratings. In a report released this week, analysts at the rating service said home prices nationally appear to be on solid footing, although some regional pockets of price risk are growing, primarily in states in the West and Southwest. Fitch said...

June 23, 2016 - Inside Mortgage Finance

Subservicing Keeps Growing as Regulatory Headaches Force MSR Owners to Cut Costs and Outsource

Subservicing vendors continued to increase their contract totals in the first quarter as owners of mortgage servicing rights moved more of their business to these specialists to counter regulatory burdens that show few signs of abating. According to exclusive survey figures compiled by Inside Mortgage Finance, $1.625 trillion of home mortgages were being handled by subservicers at March 31, a 5.5 percent sequential increase and a 19.5 percent gain year-over-year. Subservicing firms – a business mostly dominated by nonbanks with one key exception – now process...[Includes one data table]

June 23, 2016 - IMFnews

Ginnie Mae Hosts ‘Liquidity Summit’ on Friday; A Concern That the Megabanks Have Split for Good?

How big of a deal in this liquidity summit? Well, officials from the Federal Reserve and Treasury Department will be there...

June 23, 2016 - IMFnews

Short Takes: What’s an NBA Championship Worth? About 25 BPs / MountainView Selling Ginnie Mae MSRs / 20 Percent Down Isn’t the Right Answer? / Homeownership, a Complicated Affair / Ditech Hires Ex-SunTrust Exec

Who needs a toaster when you can have a mortgage at a 25 basis point discount?

June 23, 2016 - IMFnews

Ocwen to Settle with DOJ for $30 Million in FCA Lawsuits Involving HAMP and FHA

In trading Thursday, Ocwen’s share price was up almost 8.0 percent on the day to $1.69 a share.

June 23, 2016 - IMFnews

CFPB Singles Out Loan Servicers for Tech Failures. Are Fines Coming?

CFPB examiners found problems with loan modification acknowledgement notices, including sending them too late and having incorrect information or deceptive statements…

June 22, 2016 - IMFnews

Short Takes: FHA Ready to Cut the MIP? / 100 Guests at Ginnie Liquidity Summit / In Demand: Mortgage Underwriters / Citadel Employee Count at 160 and Growing / Freddie Keeps Selling NPLs

Roughly 100 guests were invited to the Ginnie Mae "liquidity summit," including regulators from the Federal Reserve.

June 22, 2016 - IMFnews

IMA Selling Almost $5 Billion of GSE Servicing Rights

The market is beginning to see more MSR auctions, much of it tied to GSE product...

June 22, 2016 - IMFnews

25 Trade and Community Groups Tell FHFA Chief Mel Watt: Kill LLPAs Now

The mortgage industry and others want LLPAs eliminated now...

June 22, 2016 - IMFnews

Federal Regulators Plead for Housing Finance Reform Legislation, Note They are ‘Approaching the Limits of their Ability to Enact Reform’

Financial regulators tell Congress: Do something now on GSE reform before it's too late...

June 22, 2016 - IMFnews

CRT Capital Group Pulls the Plug on Sterne Agee CRT; Firm Followed Several Mortgage Stocks

CRT Capital’s backers include Aquiline Capital Partners, which 18 months ago bought a large stake in subservicer/service provider LenderLive.

June 22, 2016 - IMFnews

Wells Fargo Remains the Top Jumbo Servicer – By Far; Strong Growth for JPM

Chase serviced $169.70 billion of jumbos at March 31, up 27.3 percent from the year before….

June 21, 2016 - IMFnews

Short Takes: CFO of Marketplace Firm Departs / The Coming Bloodbath in Marketplace Lending? / More Non-Delegated Options for Sellers / MiMutual Posts Nice Production Gain / He’s Back: GSE Wag Bill Maloni

Consultant Joe Garrett noted that if investors are worried about marketplace lenders in the current credit environment, just wait until the economy eventually goes south...

June 21, 2016 - IMFnews

PE Firms Rethinking their Massive Investments in MSRs?

Seneca – whose backers include The Blackstone Group, EJF Capital and Arbor Commercial Mortgage – may not be so growth-oriented going forward.

June 20, 2016 - IMFnews

Short Takes: Up and Down Mortgage Mt. Everest / Going Online with IO Ads / Overture’s Tech Update / DOJ Abandons Case Against Countrywide Founder Mozilo

Social Finance (SoFi) and Guaranteed Rate are among the lenders advertising their interest-only offerings online…

June 20, 2016 - IMFnews

MIAC and MountainView Out with New MSR Auctions

More servicing auctions are hitting the market but sellers have to be realistic on pricing...

June 20, 2016 - IMFnews

Interest-Only Lending Up Almost 27 Percent in 1Q16

Chase, which has significantly increased its jumbo originations in recent years, more than doubled its IO originations in the first quarter.

June 17, 2016 - Inside FHA/VA Lending

Around the Industry

FHA Revises TOTAL Mortgage Scorecard. Effective on June 11, 2016, the FHA’s TOTAL Mortgage Scorecard no longer returns either upfront or annual mortgage insurance premium factors to an automated underwriting system. The FHA directs lenders to consult Appendix I of its Single Family Housing Policy handbook for applicable MIP factors. AUS vendors have been notified of the change and have adjusted their systems accordingly. HUD, First Citizens Bank Settle Fair Lending Complaint. A South Carolina bank has agreed to correct its lending practices and allocate funding to resolve allegations that it denied more loans to minorities compared to similarly-situated white loan applicants. The settlement agreement stemmed from a complaint filed by the Department of Housing and Urban Development against First Citizens Bank and Trust Co. in 2011 after an analysis of ...

June 17, 2016 - Inside FHA/VA Lending

CA Realtors Seek Rule to Prohibit PACE Lien Seniority over FHA Lien

The California Association of Realtors renewed its push for rules addressing the proliferation of FHA-insured mortgages that have Property Assessed Clean Energy super liens. In a recent letter to Office of Management and Budget Director Shaun Donovan, the CAR requested that both FHA and the Department of Housing and Urban Development adopt policy that is consistent with the Federal Housing Finance Agency’s existing policy on PACE liens. Specifically, such a policy would prohibit the use of PACE encumbrances with a “super lien” priority over mortgage financing. The group also urged HUD to issue guidelines directing FHA lenders and servicers not to place PACE liens above any mortgage insured by FHA. The CAR expressed concern about how PACE liens might affect the FHA Mutual Mortgage Insurance Fund, which is currently recovering from years of losses. “If the ..

June 17, 2016 - Inside FHA/VA Lending

Court Finds No Violation of FDCPA, FHA Borrower Liable for Deficiency

A federal district court in Illinois recently dismissed a putative class action against a foreclosure firm, holding that an allegation in a foreclosure complaint that the borrower is personally liable for any deficiency on an FHA-insured mortgage is not a violation of the Fair Debt Collection Practices Act. In Justin Gierke v. Codilis and Associates, the plaintiff obtained an FHA loan in 2013 and subsequently defaulted due to financial hardship. The defendant, a law firm, filed a foreclosure action in state court against the plaintiff in February 2015. The complaint identified the plaintiff, the borrower, as personally liable for any deficiency. The plaintiff responded by filing a counter-complaint against the defendant alleging violation of the Fair Debt Collection Practices Act. He alleged that the FHA “narrowly limits the circumstances under which a deficiency will be sought to cases where the borrower committed fraud or engaged in ...

June 17, 2016 - Inside FHA/VA Lending

VA Servicer Reminders: Conveyance Guide, POC List, Compromise Sale

The Department of Veterans Affairs Home Loan Guaranty staff is reminding VA servicers of new title requirements taking effect this week for conveying properties to the VA. Under VA regulations, a conveyance or transfer of real property to the department is acceptable if the holders of the VA-guaranteed loan provide covenants or warranties against the acts of the holder and/or their agents. In addition, conveyances would be acceptable to the VA if it vests or entitles the agency to such title as is. In addition, the VA would take possession of collateral as long as it is acceptable to prudent lenders, informed buyers, title companies and attorneys in the community in which the property is located. However, the VA’s determination of clear and marketable title rests on state statutory requirements, the agency noted in its guidance. The VA is providing servicers a revised state-by-state list of ...

June 17, 2016 - Inside FHA/VA Lending

USDA Securitization Down in 1Q16, Agency to Lower Premium, Fees

Ginnie Mae securitization of rural home loans got off to a wobbly start in the first quarter of 2016 as securitization volume fell 13.8 percent from the prior quarter, according to an Inside FHA/VA Lending analysis of Ginnie data. Approximately $3.9 billion in loans with a USDA guarantee were securitized during the first three months, with the top five issuers accounting for $2.1 billion of mortgage-backed securities produced by the segment during the period. USDA securitization volume dropped 9.2 percent year over year. Top USDA issuer Chase Home Finance accounted for $1.2 billion of securitized rural housing loans, while PennyMac, in distant second place, finished the quarter with $378.5 million. Wells Fargo ($294.0 million), Pacific Union Financial ($122.8 million) and Amerihome Mortgage ($102.2 million), in sequential order, comprised the rest of the top five issuers. Pacific Union climbed over ...

June 17, 2016 - Inside FHA/VA Lending

Potential FHA Rate Cut Possible, Private MIs Have Nothing to Fear

An FHA price reduction remains a possibility but its impact is likely to be limited, according to analysts at Keefe, Bruyette & Woods. While some industry observers might think another mortgage insurance premium cut is inevitable, there is no broad pressure from any group or coalition that would compel FHA to do so, said KBW analysts Bose George and Chas Tyson, both panelists at KBW’s Mortgage Finance Conference recently. Given last year’s 50-basis-point cut, the FHA’s ability to cut rates meaningfully is somewhat limited, they said. The FHA annual MIP is currently 80 to/or 85 bps, down from the pre-reduction premium of 130 to/or 135 bps and higher compared to the average annual premium of 50 to/or 55 bps before the financial crisis. If FHA decides to reduce the premium again, George and Tyson believe the floor will likely be at the pre-crisis premium level, which would suggest a ...

June 17, 2016 - Inside FHA/VA Lending

FHA Production on a Positive Trend Despite Falling Endorsement Levels

FHA single-family forward endorsements fell by 8.0 percent in the first quarter of 2016 from the prior quarter, suggesting a continued slowing in endorsement in the latter part of 2015 and early 2016 compared to earlier quarters, according to the FHA’s latest quarterly report to Congress on the state of the Mutual Mortgage Insurance Fund. Overall though, the FHA MMIF report as well as FHA monthly production reports for March and April continued to show the very positive trends – rising volume, lower delinquencies and outstanding credit quality – that have been occurring in the FHA program since 2009. Endorsement volume for purchase and refinance loans was down to $53.5 billion during the first three months of 2016 from $58.1 billion in the fourth quarter of 2015, the MMI Fund report showed. Last year, forward endorsements soared in the second quarter and reached a record high in the ...

June 17, 2016 - Inside FHA/VA Lending

Maximum Civil Penalties for HUD, FHA Violations Set to Increase

FHA lenders will face stiffer maximum monetary penalties later this year for various violations of agency rules and regulations. The higher monetary penalties are the result of legislation signed into law late last year requiring federal agencies to adjust the current maximum penalty amounts for inflation in order to maintain their deterrent effect. Specifically, the Federal Civil Penalties Inflation Adjustment Act of 2015 (2015 Act) requires federal agencies to adjust the level of civil monetary penalties with an initial “catch-up” adjustment through an interim final rule and subsequent annual adjustments for inflation. The interim final rules with the initial penalty adjustments must be published by July 1, 2016. The new penalty levels must take effect no later than Aug. 1, 2016. Additionally, agencies are required to make annual inflation adjustments, starting Jan. 15, 2017, and for each year going forward. The adjustments will ...

June 17, 2016 - Inside Nonconforming Markets

Wells Fargo Tops Jumbo Servicers, By Far

Wells Fargo services more than a third of the jumbo mortgages serviced by the top 30 lenders in the sector, according to a new analysis by Inside Nonconforming Markets. Wells serviced a portfolio of jumbo mortgages with an unpaid principal balance of $268.16 billion as of the end of the first quarter of 2016. The bank’s jumbo servicing portfolio increased by 13.0 percent compared with the first quarter of 2015. The group of 30 companies handled ... [Includes one data chart]

June 17, 2016 - IMFnews

What We’re Hearing: Worrying About Nonbanks – Again / Banks and the GSEs: The Love Affair is Over / Keep it Under $5 Billion So the FHFA Won’t See It / GSE Discounts are Back? / Does the FHFA IG Have Enough To Do? / If You Give a Child a Credit Card…

Late this week we were hearing reports about one mortgage cooperative that was trying to strike a deal with one of the GSEs regarding pricing breaks for its members...

June 17, 2016 - Inside MBS & ABS

Fed’s Pause on Rate Hikes Means a Correction In MBS Prices Could be a Long Way Off

The long-awaited correction in MBS prices was put on hold this week with the news that the Federal Reserve isn’t ready to hike interest rates anytime soon. Moreover, now there’s a growing belief among some economists and mortgage market watchers that the central bank may not raise interest rates at all this year. And there’s even a school of thought that suggests the yield on the benchmark 10-year Treasury bond might hit 1.0 percent before it reaches 2.0 percent. As Inside MBS & ABS went to press this week, the 10-year was...

June 17, 2016 - IMFnews

Lenders Face Higher Maximum Penalties for Mortgage ‘Violations’

The Consumer Financial Protection Bureau this week issued an interim final rule showing an 8.5 percent increase in the maximum civil penalties it can obtain for various consumer protection violations…

June 16, 2016 - Inside Mortgage Finance

Seneca’s Outsourcing Deal with Nationstar Could Be a Sign that PE Firms Are No Longer in Love with MSR

Seneca Mortgage Servicing LLC, which entered the business just three years ago, has decided to outsource the monthly processing of loans to Nationstar, a sign that private-equity firms are no longer so enamored with the returns generated by mortgage servicing rights. According to a statement issued by Nationstar, it will service all of Seneca’s $50 billion portfolio and any rights Seneca might obtain going forward. Moreover, it will take control of the firm’s Depew platform in upstate New York. No terms were disclosed. However, according to interviews with servicing advisors, Seneca – whose backers include The Blackstone Group, EJF Capital and Arbor Commercial Mortgage – may not be...

June 16, 2016 - Inside Mortgage Finance

Mortgage Debt Outstanding Climbs Over $10 Trillion Mark for First Time Since 2012; Nonbanks Keep Rolling

The supply of single-family home loan debt in early 2016 grew for the fourth consecutive quarter to hit $10.008 trillion, its highest level in three and a half years, according to Federal Reserve data released late last week. The first-quarter gain was a modest 0.2 percent from the end of last year, and a 1.5 percent increase from March 2015. But the servicing market is a slow-changing glacier, and steady increases over the past year are another indicator that the mortgage market has largely recovered from the housing recession. Most of the gain came...[Includes two data tables]

June 16, 2016 - IMFnews

More Signs of Trouble for PHH Mortgage? Nonbank Cuts Early Funding Facility with Fannie Mae

In trading Thursday, the share price of PHH’s common stock was down almost 2.6 percent...

June 16, 2016 - IMFnews

FHFA Chief Rebuts IG Claim Regarding Not Controlling Costs on New Fannie Mae HQ

FHFA chief Mel Watt also points out that the sale of Fannie’s existing properties will result “in substantial additional financial benefits.”

June 16, 2016 - IMFnews

New Residential to Issue $400 Million ABS Backed by Servicing Advances; Ocwen Plays a Role

The ABS allows the following mortgage firms to service the assets: Nationstar, New Residential, Select Portfolio Servicing, Specialized Loan Servicing and Walter Investment Management.

June 16, 2016 - IMFnews

Mortgage Debt Outstanding Hits $10 Trillion Mark for the First Time Since 2012

The residential servicing market is a slow-changing glacier…

June 15, 2016 - IMFnews

Short Takes: Mortgage Trade Group v. Mortgage Trade Group? / MBA’s Stevens Reacts / Quicken Selling Loans to Berkshire’s Mortgage Unit / Why Moody’s Can't Rate JPM’s LO System / Fannie Hires New Chief Audit Executive

MBA President Dave Stevens told IMFnews: “We respect the work of Glen [Corso, CMLA director] and his organization greatly...."

June 15, 2016 - IMFnews

Seneca Outsources $50B in Servicing to Nationstar; NSM Takes Over Platform Too

A few months back, Nationstar was awarded a $55 billion subservicing contract from a depository…

June 15, 2016 - IMFnews

The Final Tally: Production, Servicing Profits Fade in 1Q16

The 12 firms reported a combined $700.6 million in earnings from their servicing operations, a 1.2 percent decline from the fourth quarter…

June 14, 2016 - IMFnews

S&P Places Negative Outlook on Walter, Questions Nonbank’s Plans to Reduce Leverage

S&P Global Ratings warned on Monday that it could downgrade the issuer credit rating of Walter Investment Management later this year due to ongoing problems at the nonbank.

June 13, 2016 - IMFnews

Open Mortgage Now Approved as GSE Seller

Open Mortgage announced they have been approved as a seller with Fannie Mae, joining the likes of So-Fi, another marketplace lender which was approved as a Fannie seller/servicer in May.

June 13, 2016 - IMFnews

Fannie Postpones DU 10.0 Release, Cites Testing Issues

Originally scheduled to be implemented the weekend of June 25, Fannie Mae announced on Friday that it is delaying the release of Desktop Underwriter Version 10.0 due to concerns that came up during the testing phase.

June 13, 2016 - IMFnews

Surge in Purchase Activity Drives GSE Business Higher in May

Fannie Mae and Freddie Mac produced $73.23 billion of single-family mortgage-backed securities in May, a solid 6.3 percent increase from April, according to a new ranking and analysis by Inside The GSEs.

June 10, 2016 - Inside Mortgage Trends

Banks Still Backpedaling Away From MSR Business as Valuations Tumble

The banking industry still hasn’t touched bottom in its years-long retreat from the mortgage servicing rights business. Banks and thrifts reported a total of $4.001 trillion of single-family mortgage servicing for other investors, most commonly mortgage-backed securities trusts, as of the end of March. That was down some $52.9 billion from the previous quarter, a 1.3 percent decline, according to a new analysis of call-report data by Inside Mortgage Trends ... [Includes one data chart]

June 10, 2016 - Inside MBS & ABS

Fitch Says Thin Track Record Caps Rating For New Nonprime MBS Issued by Lone Star

A $161.71 million MBS planned by Lone Star Funds backed by newly originated nonprime mortgages received an A rating this week from DBRS and Fitch Ratings. The deal is the first post-crisis nonprime MBS to receive a credit rating and it will be the largest post-crisis nonprime MBS issued to date. The rating services stressed that while the mortgages originated by Lone Star’s Caliber Home Loans are generally nonprime, the underwriting on the loans is relatively strong. However, Fitch said it capped the rating at A due to the limited nonprime performance of Caliber and Hudson Americas, the asset manager for the MBS. “As more post-crisis non-prime performance is established while upholding appropriate controls, Fitch will consider...

June 9, 2016 - Inside Mortgage Finance

Broad Coalition Urges CFPB to Protect Borrowers, Homeowners with Limited English Proficiency

A coalition of multi-sectoral groups is urging the Consumer Financial Protection Bureau to work with other federal agencies to provide strong protections for mortgage applicants and homeowners who have limited English proficiency (LEP). The Americans for Financial Reform, an umbrella organization for more than 200 civil rights, consumer, labor, business, investors, faith-based, and civic and community groups, said that while the CFPB has taken steps to assist LEP consumers, the agency and federal banking regulators should go further to make the mortgage marketplace fully and fairly accessible to these consumers. “Mortgage origination and servicing must be...

June 9, 2016 - Inside Mortgage Finance

Servicers Concerned About Increased Costs as New York Moves Toward Passing Abandoned Property Bill

A bill making its way through the New York state legislature has prompted concerns among servicers and the Mortgage Bankers Association, who warn that the bill’s requirements regarding abandoned properties would increase costs and legal risks for servicers. A.6932-A, the Abandoned Property Neighborhood Relief Act, was recently approved by New York’s Assembly on a 116-22 vote. The bill would require servicers to periodically inspect properties tied to delinquent mortgages, report vacant properties to a state registry and provide authorities with tools to prompt servicers to maintain abandoned properties, among other provisions. “There is...


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