Mortgage Servicers

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

March 27, 2017 - Inside the CFPB

Other News in Brief

CFPB Poised to Commence Five-Year Review of Its Major Mortgage Rules. The CFPB is getting ready to start, as per the Dodd-Frank Act, its five-year evaluation of some of the significant mortgage rulemakings it has promulgated thus far, according to a recent account by Politico, as cited by Pavitra Bacon, an associate in the Washington, DC, office of the Ballard Spahr law firm, in an online blog posting.... Will We See CHOICE Act 2.0 This Week? With less than a week left before the end of March, one well-placed industry lobbyist is still holding to the prediction that Rep. Jeb Hensarling, R-TX, chairman of the House Financial Services Committee, will in fact introduce another incarnation of his Financial CHOICE act by the end of the month....

March 27, 2017 - Inside the CFPB

Industry Hopes to Undo Parts of Dodd-Frank on Three Fronts

The new political landscape in Washington, DC, has intersected with the judicial movement on the PHH Corp. v. CFPB case to give the mortgage industry some hope that the bureau can be scaled back. But the task is complicated by the fact that the new administration is headed by a political novice, and by the fact that the industry itself is not particularly unified about what kind of changes should be made. During a recent webinar sponsored by Inside Mortgage Finance, three top industry attorneys discussed some of the prospects for change on three separate fronts of the federal government: the executive branch, the legislative branch and the judicial branch. If there’s a single theme or take-away from the event,...

March 27, 2017 - IMFnews

Short Takes: Delusional Mortgage CEOs? / A Nice Comeback for BofA / Phil Bracken for Ginnie Mae President? / SunTrust’s Online Lending Affiliate / Falling Still: The Yield on the Benchmark 10-Year Treasury

In 2009, BofA’s stock fell to as low as $3.95 a share. Today, it trades for $22.86, an increase of 478 percent…

March 27, 2017 - IMFnews

Charbonneau & Associates Working on Two M&A Deals

When it comes to mortgage banking M&A, it’s still a seller’s market…

March 27, 2017 - IMFnews

As Originations Decline, Lenders Concerned About Competition and Lower Profits

Issues involving regulatory compliance have declined significantly under the Trump administration.

March 24, 2017 - IMFnews

What We’re Hearing: No GSE Capital in Nine Months / But Don’t Sweat It / Mel Knows / Fairholme’s Bad Bet on Sears / Impac Borrows Against Fannie Mae MSRs / Blend’s Clients Include Movement Mortgage

Not only does Fairholme own Fannie and Freddie shares, it has an investment in Sears, the troubled department store chain...

March 24, 2017 - Inside MBS & ABS

Delinquencies on Subprime Auto ABS Surpass Levels Of the Financial Crisis as Lenders Loosen Underwriting

Observers of the subprime auto ABS market are raising concerns as delinquencies rise above peaks seen during the financial crisis as lenders have loosened underwriting standards in search of market share. According to Fitch Ratings’ index of subprime auto ABS, 60+ day delinquencies on loans backing the securities hit 5.45 percent at the end of 2016. Delinquencies were up from 4.70 percent at the end of 2015 and 41 basis points higher than the peak for the sector in 2009. The index tracks an outstanding balance of $38.6 billion from 149 transactions. There were 21 active shelves in the index, up from 12 active issuers in 2010. “Smaller lenders along with recent new entrants are...

March 24, 2017 - IMFnews

A New Low for Walter’s Share Price: 64 Cents

When Walter Investment released fourth quarter results last week it declined to hold a live earnings call – somewhat of a rarity…

March 23, 2017 - IMFnews

A Change in the GSE PSPAs Coming Soon? Don’t Bet on It…

Waiting for a change in the GSE PSPAs is like waiting for Godot...

March 22, 2017 - IMFnews

Wall Streeter Phillips to Play ‘Critical’ Role at Treasury on GSE Reform; GSE ‘Principles’ Coming Soon from Trump?

Calabria joined the Trump administration from the conservative Cato Institute and is no fan of the GSEs...

March 21, 2017 - IMFnews

Short Takes: Coming Soon: Falling Interest Rates? / Walter Gets Smacked Down Again / Embrace Sends its Top LOs to Boca / CoreLogic’s $5 Million Man (Rounded) / A New Hire for Silver Hill

All totaled, the new CoreLogic chief could earn almost $5 million...

March 21, 2017 - IMFnews

MBA: Net Origination Profit Plunged 68 Percent in 4Q16

MBA noted that including all business lines, 73 percent of the mortgage companies posted pre-tax profits for the fourth quarter, down from 94 percent in 3Q16…

March 21, 2017 - IMFnews

Subservicing Sector Starting to Look Crowded As More Firms Choose ‘Capital Light’ Strategy

The nation’s three largest residential subservicing firms are: Cenlar, Dovenmuehle and Loan Care. All are nonbanks.

March 20, 2017 - IMFnews

Short Takes: Walter Retains M&A Advisor Houlihan Lokey / A Penny Stock / $902 Million of Losses / Rebranding for MountainView / Ocwen Shuffles its Board

Over the past three years, Walter Investment Management has lost a whopping $902 million...

March 20, 2017 - IMFnews

Prestwick Selling $335 Million of Fannie Mae Servicing Rights

A small portion of the loans are characterized as non-owner occupied…

March 20, 2017 - IMFnews

DOJ Filing Reveals Trump Wants to Keep the CFPB, but with a ‘Removable’ Director

Attorneys with the Ballard Spahr law firm noted that, “If the DOJ gets its way, the CFPB would remain intact with a director that President Trump can replace at any time.”

March 17, 2017 - Inside FHA/VA Lending

Utah FHA Lender Pays $4.25 M to DOJ, HUD to Resolve Fraud Claims

Security National Mortgage Co. of Salt Lake City has paid $4.25 million to the Department of Housing and Urban Development to settle allegations of failing to comply with FHA loan requirements. Security National, a retail lender, has been an FHA-approved direct endorsement lender since October 1993, the year it was founded. The settlement resolves a joint civil investigation by the HUD Office of the Inspector General, Department of Justice and the U.S. Attorney’s Office for the District of New Jersey into Security National’s FHA origination and underwriting practices in connection with 100 FHA-insured loans. As part of the settlement, the lender “agreed it engaged in certain conduct in connection with its origination and underwriting of the loans.” The HUD OIG provided no details about the investigation. The OIG said the loans that were certified as compliant would not have been insured had ...

March 17, 2017 - Inside FHA/VA Lending

USDA Securitization Rose in 2016, Chase Home Continues to Lead

Approximately $18.8 billion in rural housing loans with a U.S. Department of Agriculture guarantee were delivered into Ginnie Mae pools in 2016, according to an analysis of Ginnie data. Securitization of USDA loans was up 3.9 percent from the previous year. Fourth quarter production, however, was off 10.3 percent from the prior quarter, slowing down production of USDA loans during the period. Ditech Financial, which ranked 15th among the top Ginnie Mae issuers of mortgage-backed securities backed by USDA loans, ended 2016 with $284.9 million. That was up a staggering 4712.9 percent from 2015. Chase Home Finance led the market with $3.6 billion in 2016, despite hefty declines quarter-over-quarter and year-over-year. Second-ranked PennyMac closed the year with a total volume of $2.1 billion, while Freedom Mortgage, in third place, reported $2.0 billion, a whopping ... [ 1 chart ]

March 17, 2017 - Inside FHA/VA Lending

Georgia Appeals Court Finds for Wells Fargo in Provisional Win

A Georgia appellate court recently handed Wells Fargo Bank a provisional win in a lawsuit in which a VA borrower alleged breach of contract and wrongful foreclosure. In Wells Fargo Bank, N.A., d/b/a Wells Fargo Home Mortgage v. LaTouche, the court ruled that Wells did not breach its duty to the borrower to comply with VA foreclosure regulations. The court concluded that the trial court had erred in denying Wells Fargo’s motion for summary judgment as to the defendant’s claims for wrongful foreclosure that hinged upon the same VA regulations. The reversal stemmed from Wells Fargo’s request for an interlocutory review of the trial court’s denial of its motion for summary judgment on defendant Michael LaTouche’s claims for breach of contract, wrongful foreclosure and “surprise. An interlocutory review is undertaken when a question of law must be answered by an appellate court before ...

March 17, 2017 - Inside FHA/VA Lending

Quicken Loans Notches First Win After Court Narrows Scope of Case

A favorable court ruling on the statute of limitations for filing claims under the False Claims Act gave Quicken Loans its first win in a closely watched government case involving allegedly fraudulent FHA loans. Judge Mark Goldsmith of the U.S. District Court for the Eastern District of Michigan dismissed portions of the Department of Justice’s lawsuit against Quicken in a March 9 decision, narrowing the lender’s potential liability for FHA losses. The losses were blamed on sloppy underwriting, fraudulent certification and loan performance. The DOJ said the FHA would not have knowingly insured the loans had it known they were defective. The DOJ and the Department of Housing and Urban Development’s inspector general began an investigation of Quicken’s FHA lending activities in April 2012. The investigation encompassed some 246,000 FHA loans, which Quicken originated from ...

March 17, 2017 - Inside MBS & ABS

HUD IG Calls for Changes in GNMA’s Structure, Monitoring to Reduce Risk Posed by Nonbanks

Ginnie Mae’s outdated organizational structure and staff levels have made it difficult for the agency to properly monitor and mitigate the risk posed by the increasing number of nonbanks participating in its MBS programs, according to the Department of Housing and Urban Development’s inspector general. In a recent briefing paper, HUD Inspector General David Montoya highlighted challenges Ginnie faces in monitoring nonbanks, adding that HUD is currently being audited by the IG to gauge its capacity to track and supervise nonbanks, said Montoya. Ginnie acknowledged...

March 16, 2017 - Inside Mortgage Finance

FCC Weighs Revised Phone-Contact Standards That Could Interfere with Mortgage Business

A request from two consumers for changes to the Telephone Consumer Protection Act would interfere with mortgage origination and servicing operations, according to the Consumer Mortgage Coalition. The CMC submitted a comment letter to the Federal Communications Commission late last week in response to a petition submitted to the FCC in January. The petition called for the FCC to re-write parts of the TCPA and require express consent to be in writing from consumers regarding certain communications from companies, including mortgage lenders and servicers. The petition would define express consent as not being provided even when a person to be called knowingly provides a phone number to a lender on a loan application. Anne Canfield, executive director of the CMC, said...

March 16, 2017 - Inside Mortgage Finance

Court Rules Against Lender in MI Cancellation Dispute, Says Federal Law Overrides GSE Servicing Guidelines

A borrower seeking cancellation of private mortgage insurance prevailed last week in a lawsuit against JPMorgan Chase. The appeals court noted that federal law regarding standards for MI cancellation overrides Fannie Mae’s servicing guidelines. The case of Ginnine Fried v. JPMorgan Chase centers on how to calculate a borrower’s loan-to-value ratio when allowing for MI cancellation after the LTV ratio falls below 80.0 percent. The borrower filed...

March 16, 2017 - Inside Mortgage Finance

Commercial Banks Continue Servicing Pullback, Thrifts and Credit Unions Pick Up Some Slack

The volume of home mortgages outstanding continued to grow during the final three months of 2016, no thanks to the commercial banking industry. Recently released data from the Federal Reserve show $10.266 trillion of mortgage debt outstanding at the end of last year. That was up 0.7 percent for the quarter and reflected a 2.3 percent gain for the full year. The market still has a long way to go to catch up to the $11.240 trillion of mortgage debt outstanding at the end of 2007, but growth has been steady since bottoming out in mid-2014. The agency market continued...[Includes two data tables]

March 16, 2017 - IMFnews

Agency Servicing Growing, Commercial Banks Continue Pullback

The volume of home mortgages outstanding continued to grow during the final three months of 2016, no thanks to the commercial banking industry.

March 15, 2017 - IMFnews

Nationstar in the CFPB’s Crosshairs Over HMDA Reporting

Nationstar, the residential mortgage servicer, revealed recently it is being investigated by the CFPB over issues related to complying with the Home Mortgage Disclosure Act....

March 13, 2017 - Inside the CFPB

CFPB Rules Have Hindered, May Yet Help, Adoption of E-Mortgages

Mortgage lenders’ efforts at compliance with post-financial crisis regulation, largely from the CFPB, shifted their focus from fully implementing e-mortgage processes but also helped them develop the necessary technology to move forward with them in the future, according to a new report from analysts at Moody’s Investors Service. “Following the crisis, lenders focused on adapting technology to implement regulations such as the ability-to-repay [qualified mortgage] rule and the TILA-RESPA Integrated Disclosure rule rather than on e-mortgages,” the analysts said. “The implementation of those regulations has, however, led to advancements in the technology needed to originate e-mortgages by providing, for example, a seamless data feed between the mortgage loan application and the disclosure documents.” Further, “Some lenders and servicers have also ...

March 13, 2017 - IMFnews

Request from Consumers for Changes to Phone-Contact Standards Would Interfere with Mortgage Business, CMC Warns

Anne Canfield cautioned that if the FCC adopts the changes requested in the petition, lenders would largely be prohibited from calling distressed borrowers.

March 13, 2017 - IMFnews

Volume of Mortgages Serviced by Banks for Others Declines in 2016, Driven by Big Banks

Virtually all the shrinkage in 2016 took place among the four megabanks with over $1 trillion in assets: Wells Fargo, JPMorgan Chase, Bank of America and Citibank.

March 10, 2017 - Inside Mortgage Trends

Firm Targets Borrowers Who Need Cash-Out Refis

A data management and analytics firm is offering a service that can identify a lender’s existing borrowers who “need” an offer for a cash-out refinance. Altair Customer Intelligence said it offers lenders a number of ways to retain existing borrowers. While cash-out refinance activity is well below the levels seen before the financial crisis, many borrowers have built up equity in their homes in recent years, making cash-outs an option. Steve Ferrell, ?inbound marketing manager at Altair, said...

March 10, 2017 - Inside Mortgage Trends

Drought of Mortgage IPOs Continues

It’s been roughly 42 months since the last nonbank mortgage lender went public. And it could be another 42 months before the next one comes along the way things stand today, which is kind of odd given that the industry is coming off its second-best production year of the decade. But most publicly traded nonbanks, with a few exceptions, haven’t exactly lit the world on fire the past two years. Two of the nation’s largest nonbank servicers – Walter/Ditech and Ocwen Financial – continue to trade near their 52-week lows and at a steep discount to their all-time highs. In the case of Ocwen, the fall has been...

March 10, 2017 - Inside Mortgage Trends

Despite Hefty Markup in MSR Values, Banks Continue to Dump Servicing

The banking industry continued to backpedal away from the business of servicing home mortgages for other investors during 2016, according to an exclusive new Inside Mortgage Trends analysis of call-report data. Commercial banks and savings institutions serviced $3.808 trillion of home mortgages for other investors at the end of 2016, most of which are connected to loans in mortgage-backed securities trusts. That was down $71.6 billion from the end of the third quarter, or 1.8 percent. Over the past two years, banks reduced...[Includes one data table]

March 10, 2017 - IMFnews

Non-Agency MBS Participants See a Deal Agent as Adding a ‘Brain’ to Transactions

Clayton Holdings was the first firm to receive an assessment from rating services as a deal agent…

March 9, 2017 - Inside Mortgage Finance

Servicers Strongly Oppose Proposed Regulations In Maryland Regarding Servicing Transfers

A proposal by the Maryland Commissioner of Financial Regulation regarding servicing transfers prompted strong opposition from servicers, who cautioned that it would disrupt mortgage markets. In January, the Maryland CFR proposed a number of amendments to its mortgage regulations. The proposal revised an initial plan from the state regulator back in January 2015. The new proposal included...

March 9, 2017 - Inside Mortgage Finance

HFSC’s Budget Views Lay Groundwork for Carson’s HUD Agenda as Secretary Prepares for ‘Listening’ Tour

Secretary Ben Carson may not yet have a clear agenda and a set of priorities for the Department of Housing and Urban Development over the next four years, but the House Financial Services Committee appears to have identified changes that Republican lawmakers want to see at the agency. A HUD spokesman said Carson will embark next week on a nationwide “listening” tour of certain communities and HUD field offices to learn more about the agency he leads, FHA programs and the mortgage insurance fund he oversees. On March 2, Vice President Mike Pence swore...

March 9, 2017 - Inside Mortgage Finance

MBA and ABA Suggest Guidance for IRS on Reporting Interest for Mortgages that Received Modifications

After years of confusion among servicers and borrowers, the Internal Revenue Service is getting closer to issuing guidance about how servicers should report interest to the IRS on mortgages that receive significant loan modifications. The Mortgage Bankers Association and the American Bankers Association recently submitted a joint comment letter to the agency, which announced plans to issue guidance on the matter back in December 2015. The trade groups said...

March 9, 2017 - Inside Mortgage Finance

Subservicing Sector Starting to Look Crowded As More Firms Choose ‘Capital Light’ Strategy

The nation’s residential subservicing specialists increased their contract base to $1.93 trillion at the end of 2016, a 2.7 percent sequential gain and an impressive 22.9 percent improvement over yearend 2015, according to survey figures compiled by Inside Mortgage Finance. It’s a sign that this segment of the industry is beginning to look a bit crowded, which means profit margins could come under pressure. Over the past year, several fairly large players in the market – Flagstar, Nationstar Mortgage, Walter/Ditech and PHH Mortgage – have sold...[Includes one data table]

March 9, 2017 - IMFnews

Short Takes: Practice Random Acts of Kindness at HUD and Cut the Budget / Moneymakers: FHA and Ginnie / IG Questions HUD Oversight of DPA / Stonegate Reports Profit, Books MSR Gains / Silver Hill Tweaks Loan Terms

Will HUD cut money from the FHA and Ginnie Mae programs?

March 9, 2017 - IMFnews

Servicers Strongly Oppose Maryland’s Attempt to Block Mortgage Servicing Transfers

The Consumer Mortgage Coalition believes the proposal effectively prohibits servicing transfers in many cases…

March 8, 2017 - IMFnews

Short Takes: What Higher Rates Might Mean / And the Refi King of Mortgage Banking is… / There’s Still a Disturbance in the (Mortgage) Force, Only Less So / Vertical Looking to Buy / Better Mortgage’s First Year

Fannie and Freddie are still worth less than social media darling Snap, but the gap is narrowing...

March 8, 2017 - IMFnews

Still Anemic: Investor Interest in Ginnie Mae Servicing Rights (Flow Deals)

According to one advisor: “I do think a thaw is on, but if you threw it on the grill, it would still be pretty tough because it’s not fully defrosted.”

March 8, 2017 - IMFnews

Fairholme Case Update: Judge Orders Government to Review and Hand Over Non-Privileged Documents

Since Fairholme filed its “takings” case the government, Uncle Sam has turned over 48,000 documents totaling more than 500,000 pages.

March 7, 2017 - IMFnews

Short Takes: It Appears Carson Likes the MI Industry / New HUD Chief Carson Asks Employees to Take ‘The Niceness’ Pledge / You Can’t Overload the Human Brain? / Prestwick Selling GSE Servicing Rights / Freddie’s New Whole Loan Deal

"You can't overload the human brain," said newly minted HUD secretary Ben Carson. And there was more...

March 7, 2017 - IMFnews

Will Treasury Take a Look at Mortgage Servicing Compensation?

Perhaps, residential servicers should receive 33 basis points for servicing Fannie/Freddie loans, not 25 bps...

March 7, 2017 - IMFnews

How Much Longer Can Hedge Funds Hold on to their GSE Stock Wagers?

Fairholme extolled the GSE’s massive fourth quarter profits of almost $10 billion, and called them “indispensable” to the mortgage insurance industry…

March 7, 2017 - IMFnews

Jumbo Servicers Post Modest Gains in 2016

Among the top 30, LoanCare had the largest increase to its jumbo servicing portfolio…

March 6, 2017 - IMFnews

Short Takes: Banc of California’s Mortgage Chief Receives Kudos / Money that will have to be Replaced / Security National the Latest to Settle with HUD / CoreLogic Notes the Passing of its CEO / A New Hire for Inland Home

Banc of California’s mortgage division generated $150 million a year in revenue…

March 6, 2017 - IMFnews

Freedom May be a Buyer of Mortgage Servicing Rights

Although Freedom is private, a few years back it launched a publicly traded REIT called Cherry Hill Mortgage Investment, which lately has been trading near its 52-week high.

March 6, 2017 - IMFnews

The Trump ‘Wire Tap’ Accusation and What it Means for the GSEs

Cowen notes: “…this latest flare up reinforces our view that Treasury is unlikely in 2017 to unilaterally change the profit sweep at Fannie and Freddie…”

March 3, 2017 - Inside FHA/VA Lending

Public Disclosure of Misconduct May Bar Specific Claims of Fraud

Relators in a False Claims Act lawsuit must allege misconduct that has not already been publicly disclosed or risk dismissal of their qui tam claims, according to the U.S. Appeals Court for the Sixth Circuit. In U.S. ex rel. Advocates for Basic Legal Equality, Inc. v. U.S. Bank, the court ruled that whistleblowers cannot raise “substantially the same allegations or transactions” that have been previously alleged in an action or claim and publicly disclosed. The qui tam plaintiff must be the original source of the allegations, the court said. Only certain disclosures trigger the prohibition, the court noted. They include disclosures “in a federal criminal, civil or administrative hearing in which the government or its agent is a party,” or in a Government Accountability Office or other federal report, hearing, audit or investigation, or from the news media. n this case, the relator/plaintiff alleged that U.S. Bank initiated foreclosure proceedings ...


With the spring homebuying season in full swing, what percentage of your March 2017 application volume has been for “purchase” loans?

75% or higher
50% to 74%
30% to 49%
Under 30%

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