Mortgage Servicers

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

May 27, 2016 - IMFnews

Incenter Offering $1.4 Billion of Fannie, Freddie Servicing Rights

The Texas portion of the receivables has been measured at 60.5 percent with Colorado a distant second at 13.6 percent.


May 27, 2016 - Inside MBS & ABS

Correspondence Between SEC and Redwood Shows That Publicly-Registered MBS Are Subject to Meticulous Scrutiny

Issuers of non-agency MBS willing to issue publicly-registered securities can look forward to thorough reviews by the Securities and Exchange Commission. Redwood Trust filed an updated shelf registration with the SEC this month and the SEC released some of the feedback that went into crafting the issuer’s new Form SF-3. Issuance of publicly-registered non-agency MBS has been minimal since the financial crisis, with issuers seeing pricing in the private 144A market as adequate. Public transactions are subject to more extensive disclosure standards than private deals. An initial letter from the SEC dated Oct. 29, 2014, noted...


May 27, 2016 - Inside MBS & ABS

Potential Investors in New Non-Agency MBS Stress The Need for a Deal Agent, Operational Issues Persist

Some potential investors in new non-agency MBS insist that a deal agent or transaction manager is necessary to revive the non-agency MBS market. Some issuers are willing to include a deal agent in their securities, though the exact functions and pricing issues still need to be worked out. “Many potential buyers of residential MBS have a strong desire for improved transaction governance mechanisms such as the use of independent deal agents,” Moody’s Investors Service said in a report published late last week. The rating service recently held a meeting with investors, issuers and others involved in the non-agency MBS market. Moody’s said...


May 27, 2016 - IMFnews

GSE Preferred Shareholders Rejoice in Release of New Court Documents. A White House Cover Up?

One of those high-ranking officials is Jim Parrott, former White House housing finance executive...


May 26, 2016 - Inside Mortgage Finance

House Eases LO Employment Transitions; Senate Passes FY 2017 FHA Funding Bill

The House this week approved legislation making it easier for loan officers working for depository institutions to go to work for nonbanks. Separately, the Senate last week approved a $39.2 billion fiscal 2017 funding bill for the Department of Housing and Urban Development. By a unanimous voice vote, House lawmakers approved H.R. 2121, the SAFE Transitional Licensing Act. The legislation provides for a 120-day temporary license for registered loan originators who change jobs and makes for an easier transition when moving from a financial institution to a state-licensed nonbank or to another state. Introduced last April by Rep. Steve Stivers, R-OH, the bill would require...


May 26, 2016 - Inside Mortgage Finance

Caliber Inks One M&A Deal and Eyes Several Others; Blackstone Continues to Look at Opportunities as Well

Fresh off of agreeing to buy California-based First Priority Financial, Caliber Home Loans is eyeing the purchase of other mortgage firms as well in an attempt to crack the top 10, according to industry advisors who have been tracking the firm. “Caliber is talking to a lot of people,” said Rick Roque, managing director of MiMutual Mortgage, Port Huron, MI. Roque declined to elaborate. One investment banker said...


May 26, 2016 - Inside Mortgage Finance

With Servicing Costs Steadily Rising, Is it Time to Think The Unthinkable: A Hike in GSE Servicing Compensation?

Although mortgage delinquency rates are once again at pre-crash levels, servicing costs continue to rise, leading some factions of the industry to ask whether Fannie Mae and Freddie Mac should increase the standard 25 basis point fee they pay to their servicers. The issue of higher servicing compensation was raised by an individual lender during the audience Q&A at a panel featuring the top single-family executives of the two government-sponsored enterprises at last week’s secondary market conference sponsored by the Mortgage Bankers Association. Both noted that servicing has changed significantly since the housing crisis, and that the Federal Housing Finance Agency has directed them to review servicing compensation. Subsequent interviews conducted by Inside Mortgage Finance revealed...


May 26, 2016 - IMFnews

Short Takes: How About a 37.5 BP GSE Servicing Fee? / Jumbo Lenders Await President Obama, Maybe / Nonbank Dumps MSRs? / PHH Inks New Severance Deal for Top Execs / Retirement at BB&T

How would you like to be the servicer of a mortgage made to Barack Obama?


May 25, 2016 - IMFnews

OCC Fines Wells Fargo $70 Million for Servicing Issues, Ends Consent Order Dating Back to 2011

Four other banks were released from similar restrictions by the OCC earlier this year...


May 25, 2016 - IMFnews

Short Takes: Donald, the Housing Bubble and Tim / Yahoo and Quicken? / Duff Report Puts Ocwen in the Clear / SCOTUS Unlikely to Take Marketplace Case / Vendor Update: Chronos

The housing bubble did in fact burst and I don’t recall Trump making any money off of it unless he did so through private investments that none of us know about...


May 24, 2016 - IMFnews

Short Takes: The Industry Strikes Back / Breach of Contract, Not Fraud / A Wingspan Candidate? / BKFS: A 10-Year Low in Foreclosure Starts / PHH Home Hires Former Bank Executive

Bad news for specialty servicers: Black Knight Financial Services said 58,700 foreclosures were started during April, the lowest reading in 10 years...


May 24, 2016 - IMFnews

A Week After Unveiling $300 Million Debt Offering, PennyMac Delays the Deal

According to figures compiled by Inside Mortgage Finance, PMFS is the nation’s sixth largest residential originator, and 11th largest servicer.


May 23, 2016 - IMFnews

Short Takes: So Much for the Quiet on TRID Complaints / Mortgage Lenders Lean Toward Trump? / The Last Squeezing of the HARP Grapes / Former Wells Exec Joins Fannie Mae Board

So, who will mortgage professionals vote for come the fall election? Trump or Clinton?


May 23, 2016 - IMFnews

IMA, MIAC Out with New Servicing Deals

With rates holding steady the past two weeks, more servicing auctions could come to market…


May 23, 2016 - IMFnews

CFPB Experts: Chances of Being Examined Rest in Complaint Portal, Data

Nonbanks primarily need to worry about being examined for lending, but the CFPB has its ears open to servicing complaints as well…


May 20, 2016 - Inside FHA/VA Lending

Around the Industry

HUD Sends Final Condominium Rule to OMB for Clearance. The Department of Housing and Urban Development has sent a final rule to the Office of Management and Budget that would make it easier for borrowers to obtain FHA financing for certified condominium units. Once issued, the final rule will replace temporary guidance which HUD issued in November last year to ease FHA’s condo approval process. The move is aimed at increasing affordable housing options for first-time and low-income homebuyers. The final rule is expected to reflect measures in the interim guidance, including modification of the requirements for condo project recertification, revised calculation of FHA’s required ownership-occupancy percentage, and expansion of eligible condo-project insurance coverages. IG Scrutinizes HUD Oversight of SFHAs’ Downpayment Assistance Programs. Residential lenders that rely on ...


May 20, 2016 - Inside FHA/VA Lending

VA Clarifies Guidance for Conveying Titled Properties to VA Secretary

The Department of Veterans Affairs has clarified the type of documents lenders would need to provide clear and marketable title for conveyed properties to the VA in all states and U.S. territories. Under VA rules, each conveyance or transfer of real property to the VA shall be acceptable if “the holder covenants or warrants against the acts of the holder and those claiming under the holder (e.g. by special warranty deed).” In addition, the conveyance would be acceptable if it entitles the VA Secretary to such title as is or if it is acceptable to prudent lenders, informed buyers, title companies and attorneys, generally in the community in which the property is located. The VA said its determination of clear and marketable title depends on state statutory requirements. As a general requirement, documents for proper conveyance of clear and marketable title to the VA include the ...


May 20, 2016 - Inside FHA/VA Lending

VA Issues New Servicing Guidance, Reminders on Foreclosures, Others

The Department of Veterans Affairs has issued new guidance and some servicing reminders in connection with mobile-home foreclosures, consent judgments, servicer transfers, liquidation appraisal fees and others. VA servicers must specifically refer to the mobile home in foreclosure declaration documents to ensure that both the home and the land are properly foreclosed, the VA said. Many states require two separate foreclosure procedures for every transaction – one to foreclose the interest on the land and the other to foreclose on the title of the mobile home. The VA said foreclosure on the title of the mobile home may have to be filed with state’s Department of Motor Vehicles (DMV). When a VA loan on a home on wheels is referred to foreclosure, the servicer must inform the foreclosing attorney that it is a mobile home and whether a DMV filing is required. The VA will reconvey the mobile home to the ...


May 20, 2016 - Inside FHA/VA Lending

Trade Groups Urge Congress to Reevaluate Appraisal Oversight

Trade groups representing lenders, homebuilders and appraisers have asked Congress to hold a hearing this year on the future of appraisal regulation. In a joint letter, five industry groups urged the Senate Committee on Banking, Housing and Urban Affairs to reevaluate oversight of the appraisal industry and the current federal regulatory structure for real estate appraisal. The committee last held an appraisal oversight hearing in 2004. Federal appraisal regulations have been untouched since the enactment of the Federal Financial Institutions Reform, Recovery and Enforcement Act of 1989, the trade groups noted. In addition, the groups asked that both federal and state responsibilities be reassessed to see if they continue to serve consumers and market participants well, as well as promote competition in the marketplace. In addition to federal regulation, states regulate appraisers as well. The groups want to know from Congress whether federal oversight of appraisers is still necessary.


May 20, 2016 - Inside FHA/VA Lending

Appraisers Balk at FHA Rule Adding Home Inspection to Appraisals

There is widespread frustration among FHA appraisers regarding the scope of service they are now required to provide under the Department of Housing and Urban Development’s newly revised single-family policy handbook. While the new handbook brought more clarity to FHA’s lending and underwriting policies, certain changes to property-valuation rules appear to have added home inspection to appraisal work – and appraisers and real estate professionals are not pleased. Many of the so-called changes in the handbook already existed, but one change that stood out is the word “must,” said Martin Wagar, a certified broker/appraiser and president of Wagar & Associates. Appraisers are now required to know the basic appliances that come with the home, how to operate them, and to identify and report any deficiency that may affect their “contributory value” to the property, said Wagar at a ...


May 20, 2016 - Inside FHA/VA Lending

FHA Proposes to Codify HECM Reforms, Consumer Protections

The FHA has proposed to codify key improvements to the Home Equity Conversion Mortgage program and add new protections to senior homeowners to ensure they can remain in their homes and enjoy the benefits of an FHA-insured reverse mortgage. The proposed new HECM consumer protections include full disclosure of all HECM loan products and features. Lifetime interest rate increases on HECM adjustable-rate mortgages would be capped at 5 percent, while annual interest-rate increases on HECM ARMs would be limited to 1 percent. Lenders would be required to pay the HECM’s mortgage insurance premiums until the loan is paid in full, foreclosed on, or a deed-in-lieu of foreclosure is executed. In addition, the rule proposes to amend the definition of “expected average mortgage interest rate” to allow lenders, with the agreement of the borrower, to lock-in the rate prior to ...


May 20, 2016 - Inside FHA/VA Lending

Key Lessons for FHA Lenders from M&T Bank, Guild FCA Lawsuits

There are important details in the recent M&T Bank settlement with the Department of Justice and in this week’s announced filing of a lawsuit against Guild Mortgage that could help lenders avoid a potential false claims lawsuit, according to industry observers. The government’s complaints against the two FHA lenders were brought under the False Claims Act, which penalizes acts that intend to defraud the government and taxpayers. The government has been using this powerful statutory tool in the mortgage arena in its attempt to recover FHA losses arising from fraud and noncompliance with agency requirements. As in previous FCA cases against FHA lenders, both M&T Bank and Guild Mortgage were accused of false certification, lax underwriting, poor quality control, failure to review early payment defaults, and failure to self-report deficient loans and remediate problems in a timely manner. In addition, the ...


May 20, 2016 - Inside FHA/VA Lending

Attorneys See Potential Defense In Recent Circuit Court Rulings

Recent circuit court rulings may bolster FHA lenders’ defense against the government’s heavy use of the False Claims Act in FHA lending cases, according to industry attorneys. In the years following the financial crisis, the Department of Justice and the relators bar have used the FCA aggressively to target banks and nonbank mortgage lenders for losses incurred by FHA due to poor underwriting and false certifications. The DOJ and the Department of Housing and Urban Development have recovered billions of dollars through settlements with various mortgage lenders and servicers, using increasingly creative theories of liability to hold them responsible for FHA losses. This week, the DOJ filed a lawsuit in federal court in Washington, DC, accusing Guild Mortgage of improper origination and underwriting of FHA-insured mortgage loans from January 2006 through December 2011. As in ...


May 20, 2016 - Inside FHA/VA Lending

FHA Originations Decline in 1Q16, Production Improves Year-over-Year

FHA activity was lackluster in the first three months of 2016 as loan originations fell 7.8 percent from the prior quarter, according to Inside FHA/VA Lending’s analysis of agency data. The weak first-quarter production of $53.5 billion appeared to continue a trend from 2015, which saw the fourth quarter close with $58.1 billion, down significantly from $73.7 billion in the third quarter. In contrast, FHA originations fared better year-over year. Loan production was up 35.6 percent in the first quarter compared to the same period last year. Purchase lending totaled $36.5 billion in the first three months with overall production trending downward during the period. Borrowers in the 640-679 and 680-719 credit score ranges made up the bulk of new endorsements for January and February, the latest FHA data show. It is unlikely that trend will change even if March endorsements were added. Between all ... [ 2 charts ]


May 20, 2016 - IMFnews

What We’re Hearing: Let the TRID-Compliance Games Begin! / The Central Nervous System = CMS / And Don’t Forget a Parking Space for the CFPB! / JPM Now the Jumbo King / A New MSR Deal From IMA / Where Would the GSEs Be Without Their Legal Recoveries?

Helpful CFPB mortgage audit tip: Set aside a parking space for the visiting CFPB examiner(s) that says, “Welcome, CFPB…”


May 20, 2016 - Inside MBS & ABS

SEC Providing Issuers with an Opportunity to Test Asset-Level Disclosure, Receive Feedback

The Securities and Exchange Commission is allowing MBS and ABS issuers to test asset-level disclosures and receive feedback in advance of requirements that take effect Nov. 23. Through July 15, issuers can request that SEC staff provide feedback on a test filing for compliance with the asset-level disclosure requirements set by the so-called Regulation AB2. The filings will be submitted via the new Form ABS-EE. Under Reg AB2, an ABS issuer that makes an initial bona fide offer on or after Nov. 23, 2016, must provide...


May 20, 2016 - IMFnews

Conservative Groups (Surprisingly) Join the Fannie/Freddie Recap Bandwagon

The groups stress that the conservatorships were intended to be a short-term measure to keep the GSEs solvent…


May 19, 2016 - Inside Mortgage Finance

Banks’ Tighter Underwriting Linked with an Increase in Denial Rates, Lower Delinquencies

A paper recently published by the Treasury Department’s Office of Financial Research detailed links between changes in underwriting standards at banks and the banks’ loan application denial rates and mortgage performance. While the findings are intuitive, the paper from the OFR was the first to match individual lenders’ confidential responses to the Federal Reserve’s Senior Loan Officer Opinion Survey with data from the Home Mortgage Disclosure Act. “We find...


May 19, 2016 - Inside Mortgage Finance

Delinquency Rates and Foreclosure Starts Falling Steadily in the First Quarter of 2016

Falling delinquency and foreclosure rates over the last few years have continued to break recent records, according to industry sources, thanks to several factors including an improved housing market and price appreciation. As of the end of March, only 4.95 percent of the $5.08 trillion of home mortgages covered by the Inside Mortgage Finance Large Servicer Delinquency Index were in default or foreclosure status. That was down from 5.54 percent at the end of the fourth quarter. The figures are not seasonally adjusted. The Mortgage Bankers Association reported...[Includes one data table]


May 19, 2016 - Inside Mortgage Finance

Industry Execs Consider Liquidity, Bringing Private Capital into Government-Dominated Market

The heavy role of Fannie Mae, Freddie Mac and Ginnie Mae in the post-crisis mortgage market has brought lower rates and considerable liquidity to the mortgage business, but industry leaders question whether private capital can meet the growing need to finance nonbank servicing portfolios and the eventual pullback of the Federal Reserve. “We wouldn’t have the same price we have now without the government being there; its programs provide a 2 to 3 percent discount,” said Stan Middleman, CEO of Freedom Mortgage Corp., during a panel session at the Mortgage Bankers Association’s secondary market conference this week. “They are the whole enchilada. If you took them out, we’d have nothing.” The government-sponsored enterprises are...


May 19, 2016 - IMFnews

13th Largest Originator Caliber in an Acquisition Mode? Agrees to Buy First Priority

Will Caliber buy other companies as well?


May 19, 2016 - IMFnews

GSEs Clarify Their Views on Servicing Compensation

Is it time to take another look at GSE servicing fees? A topic is reborn...


May 19, 2016 - IMFnews

Servicing Auctions Gather Steam, But Concerns Remain About MSR ‘Marks’

MorVest's David Fleig predicted that nonbanks – which have been gaining market share the past two years – eventually will move to convert some of their MSR assets into cash via bulk sales.


May 18, 2016 - IMFnews

Short Takes: The TRID Mess, It’s Not Quite Over… / NAIHP Chief Doesn’t Hold Back on his Views of the CFPB / United Wholesale Rolls out New Jumbo Product / So Long S.A. / New Hires for Envoy Mortgage

UWM is offering “rate incentives” for jumbo borrowers with FICO scores north of 740, and a promise to close the loan in 25 days or less…


May 18, 2016 - IMFnews

Industry Doubts Trump’s Proclamation on Dismantling of Dodd-Frank Act

DFA also created the Consumer Financial Protection Bureau, an agency that seems almost universally loathed by the mortgage industry.


May 18, 2016 - IMFnews

Is ‘Zero Capital’ for the GSEs Really a Non-Issue?

When Freddie recently unveiled a first-quarter loss due to hedges affected by falling interest rates, MBA chief Dave Stevens issued a statement once again calling for Congress to enact housing-finance reform, but said nothing about the issue of zero capital.


May 18, 2016 - IMFnews

The Final Tally: MSR ‘Marks’ Hammered 1Q16 Results of Nonbank Mortgage Firms

How disruptive were MSR ‘marks’? The nine nonbank lenders tracked by Inside Mortgage Trends reported a combined $510.0 million loss in the first quarter…


May 17, 2016 - IMFnews

Short Takes: The GSEs Get Religion on Servicing Fees? / A ‘Seminal’ Change? / Oh, Carol. Former FHA Chief Racks Up Ocwen Shares / Searching for Principal Reduction Candidates / A New Hire for Stonegate

“This is a seminal change,” one GSE observer told us.


May 17, 2016 - IMFnews

Private Money Servicer FCI Gets Business from Unlicensed Servicers

At March 31, the Anaheim, CA-based FCI had $4.2 billion of servicing contracts on its books.


May 17, 2016 - IMFnews

After Nonbanks Suffer MSR Hits, Kroll Questions Utility of GAAP Accounting

KBRA noted that most nonbanks with large holdings of MSRs don’t hedge large swaths of their portfolios…


May 16, 2016 - IMFnews

PennyMac Financial Units in $300 Million Offering of Private Notes; More MSR Buys?

PennyMac Financial is a top-10 ranked lender and may soon break into the top-10 in servicing as well…


May 16, 2016 - IMFnews

Subprime Servicing Drops, Regulatory Issues Do Not

Ocwen Financial continues to rule the roost in terms of subprime servicing…


May 16, 2016 - IMFnews

A New Idea on GSE Reform: Turn Fannie and Freddie Over to Ginnie?

To significantly reduce credit risk, all mortgages sold to Ginnie 2.0 would require a private credit enhancement attached to the loans…


May 13, 2016 - IMFnews

What We’re Hearing: ‘Deferred Tax Assets’ at the GSEs Top $55B But … / Time to Wipe Out Some GSE Shareholders? / Mortgage ‘Shorts’ Reduce Their Bets / What’s a Mortgage Call Center Really Worth? / Impac Looking for Deals?

One observer noted: “Talk about a government takeover! This feels third-world to me…”


May 13, 2016 - IMFnews

Uncertainty Remains on Capital Requirements for Nonbank Servicers

Accelerated growth through the acquisition of mortgage servicing rights is an undertaking that remains challenging to the industry, said the MMC…


May 13, 2016 - IMFnews

DOA (For Now): The Mortgage IPO Market

The poor stock performance of this group has bloodied the water for mortgage IPOs...


May 12, 2016 - Inside Mortgage Finance

CFPB Focused on Fair Lending Risks Related To Redlining, Underwriting, Pricing, Servicing

Many mortgage lenders continue to fret about the Consumer Financial Protection Bureau’s integrated disclosure rule, but the bureau’s latest report to Congress suggests they should also pay attention to fair lending issues, including Home Mortgage Disclosure Act data integrity, along with mortgage servicing. “Mortgage lending continues to be a key priority for the [CFPB’s] Office of Fair Lending for both supervision and enforcement, with a focus on HMDA data integrity and potential fair lending risks in…


May 12, 2016 - Inside Mortgage Finance

State Regulators Focus on Servicing, But No Timeline for Nonbank Capital Standards Proposed Over a Year Ago

State regulators focused much of their mortgage-related supervisory efforts in 2015 on servicing examinations enforcement, according to the Multi-State Mortgage Committee. State regulators also continue to work on capital requirements for state-licensed nonbank servicers, but there’s no timeline for when further action might occur. ....


May 12, 2016 - Inside Mortgage Finance

Servicing Auctions Gather Steam But Concerns Remain About MSR Pricing and Prepayments

Declining interest rates have thrown a monkey wrench into mortgage servicing sales this year, but investment bankers and advisors are seeing an increase in new auction notices, even though pricing remains muted. Moreover, some market-makers expect an eventual boom – but only if interest rates would rise a bit and stay that way. “There hasn’t been a lot of activity of late…


May 12, 2016 - IMFnews

Short Takes: Banks Aren’t Touching Subprime / Bad News for Specialty Servicers: Delinquencies Stay Low / A Multiyear Low for FHA Late Payments / Time to Dream of an FHA Premium Cut? / Mortgage Broker Falls Short in House Bid

Perhaps, the time is drawing near to once again raise the thorny issue of whether the Department of Housing and Urban Development should cut FHA premiums...


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