Mortgage Servicers

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

September 23, 2014 - IMFnews

Ginnie Mae Promises Net Worth Rules for All by MBA Annual

Soon it will be easier to use Ginnie Mae mortgage servicing rights as collateral, or so the agency hopes.

September 22, 2014 - IMFnews

Short Takes: Ginnie Mae MSR Transfers Plunge / And the Authors Are… / Time to Short Altisource? / Rep. Maloney Goes to Bat for GSE Multifamily / New Chairman for FHLB’s Office of Finance

Why short Altisource? This source reasons that as real estate values continue to improve and foreclosures slow, Altisource will have less to do going forward...

September 22, 2014 - IMFnews

New Ginnie White Paper: Banks Good for Risk, Nonbanks Not So Good

Tozer believes that with depositories in control of the Ginnie market, the regulation of lender/servicers has essentially been outsourced to banking regulators who have “vast experience” in safety and soundness.

September 22, 2014 - IMFnews

Mortgage Stocks Continue to Feel the Heat

In short, investors – if they bought mortgage stocks at their peaks – are looking at substantial losses...

September 22, 2014 - IMFnews

Center-Right Groups Want Transparency From Treasury on GSE Profit Sweep

In the last quarter, for instance, Fannie and Freddie posted combined net earnings of $5.1 billion – most of which was swept into a Treasury account.

September 19, 2014 - Inside Mortgage Trends

Housing Counseling Helped Reduce Losses

A housing counseling program funded with federal appropriations has helped reduce losses for servicers and helped borrowers, according to the Urban Institute. NeighborWorks America administers the National Foreclosure Mitigation Counseling program, which was launched in 2008. The Urban Institute tracked outcomes related to $172.56 million in funding for the NFMC program and determined that borrowers receiving counseling from the program realized $518 million in annual savings ...

September 19, 2014 - IMFnews

What We're Hearing: Do Banks Really Hate Mortgages? / Stearns Hires Former BofA Retail Honcho / Do the GSEs Really Need Capital? / A Bad NPL Experience?

Commercial banks hate mortgages. No, they don't. Yes, they do. No they don't. Yes, they do...

September 19, 2014 - IMFnews

West Coast-based RPM Finally Inks Deal to Buy NH Lender; More Purchases in the Works?

Founded in 1996, Regency is owned and operated by its founders Quentin Keefe and Maureen Lemay. Both will continue in their present positions.

September 19, 2014 - Inside MBS & ABS

Fitch’s Change to Home Price Modeling Could Reduce Credit Enhancement Requirements on Non-Agency MBS

Fitch Ratings this week proposed changes in how it models home prices for loans to be included in new non-agency MBS. The change means more regions being classified as having sustainable home prices, which could lead to lower credit enhancement requirements on new securities. “The updated Sustainable Home Price model shows a stronger relationship to historical home prices and effectively distinguishes between periods of sustainable and unsustainable home prices,” the rating service said. “Under the new methodology, Fitch’s estimation of overvaluation is typically lower than in the previous model build.” Fitch has incorporated...

September 19, 2014 - Inside MBS & ABS

Market for Securitization of Mortgage Servicing Rights Yet to Get Off the Ground. Here’s Why

Although investors continue to pay premium – or close to it – prices for newly originated mortgage servicing rights, very few residential lenders have tried to securitize the underlying cash flows, leaving some market observers scratching their heads. “There are very few deals out there that I’m aware of,” said one servicing advisor, requesting his name not be used. “If a company needs cash, it’s a good option, but there’s just not much going on.” So far this year, just a handful of MSR-backed bonds have come...

September 19, 2014 - IMFnews

Flow and Bulk MSR Deals Continue to Hit the Market

Although "legacy" MSR sales are in the tank, newer servicing rights continue to hit the market.

September 18, 2014 - IMFnews

Short Takes: Did EverBank’s Default Sale Backfire? / Can the Non-QM Market Save the Industry? / Which Mortgage Companies Will Be Forgotten? / A Layoff for a REIT / Stonegate Hires New Executive

Some mortgage executives told us privately that residential originations could fall by 20 percent year.

September 18, 2014 - Inside Mortgage Finance

The Mortgage M&A Train Finally Arrives; Stearns Lending Weighs Its Options…

Over the past few weeks, a handful of mortgage firms have announced acquisitions of smaller shops with an eye toward expanding their origination footprints or servicing portfolios. And investment banking advisors told Inside Mortgage Finance that between now and yearend, the mergers and acquisitions market should be brisk as owners of privately held companies finally head for the exits, realizing that when it comes to originations, 2015 likely won’t be much better than the current year. The largest nonbank to test the M&A market this year is...

September 18, 2014 - IMFnews

Non-Agency Lender Citadel Hopes to Hire At Least 100 New Staffers

Roughly 40 to 50 percent of Citadel's production goes on its balance sheet.

September 18, 2014 - IMFnews

Caliber Home Loans Inks Deal to Buy $4 Billion Originator

As part of the transaction, Cobalt co-founders Keith Tibbles and Ernie Gehre will stay with the company, which will become a division of Caliber.

September 17, 2014 - IMFnews

Short Takes: New Hampshire Nonbank About to be Sold / PE Firms Like Hard Money, Crowdfunding, P2P / Are Commercial Banks Toast? / Virginia Sues Wall Street Over PLS / Great Scot! Who Gets the RBS Liability?

Although there appears to be strong interest these days in mortgage banking firms, the outlook isn’t particularly bright for commercial banks.

September 17, 2014 - IMFnews

Offering ‘Book’ Circulating on Nation’s 16th Largest Originator: Stearns

Company CEO Brian Hale downplayed the news of an offering book, noting that it hired an investment banker because over the past 12 months Stearns has been approached by “a number of interested investors.”

September 16, 2014 - IMFnews

Short Takes: What’s MERS Worth? / Fannie, Freddie and MBA Could Use the Money / MBA Tells FHFA to go Easy on Buybacks / A Drop in FHA FICOs / Clayton’s New Hire

The Mortgage Bankers Association wants the FHFA to push Fannie and Freddie to go easy on mortgage buybacks.

September 16, 2014 - IMFnews

Subservicing Growth Ebbs, but Prospects Still Look Bright

Dovenmuehle and Cenlar have long dominated the sector, but a growing number of small and midsized players have made inroads in recent years.

September 16, 2014 - IMFnews

Ex-FHFA Chief DeMarco Warns that Private Capital May Lose Interest in Mortgages

“The conservatorships are a huge barrier to entry for private capital,” said former FHFA Acting Director Edward DeMarco.

September 15, 2014 - IMFnews

Short Takes: New Jumbo Deal from Two Harbors / Investors Dumping Fannie and Freddie Stock? / GSE Plaintiff Hires Former Fannie CFO Howard / M&A for NYCB? / Want a Loan? Don’t Get Pregnant / Norcom Opens Another Branch in Connecticut

Is it time to sell shares in Fannie Mae and Freddie Mac?

September 15, 2014 - IMFnews

Bank First-Lien Portfolios Continue to Grow, Including Agency Loans

Among the four largest holders of first liens, only Bank of America decreased its portfolio in the second quarter.

September 12, 2014 - Inside FHA Lending

Around the Industry

$835 Million Ginnie Mae Servicing Portfolio Hits Market. Mountain Servicing Group (MSG), a residential mortgage servicing rights transaction and valuation advisor, has announced an $835 million Ginnie Mae bulk-servicing offering. The company is the exclusive advisor to the seller, described only as “one of the premier mortgage bankers in the country.” The portfolio includes 99.7 percent fixed-rate and 100 percent first-lien, government-backed loans, with a weighted average original FICO of 691. Its weighted origination loan-to-value ratio is 94 percent, and its weighted average interest rate is 4.0 percent. The average loan size is $205,309. Top states for the portfolio are California (23.9 percent), New York (9.6 percent), Florida (4.7 percent), and Pennsylvania (4.5 percent). “It’s an exceptionally clean GNMA portfolio, with very low coupon and low delinquencies,” said Robert Wellerstein, managing director at MSG. “We expect this package to ...

September 12, 2014 - Inside FHA Lending

Investors Lining Up for Sixth Distressed Note Sale

The Department of Housing and Urban Development is now qualifying investors for its sixth auction of non-performing loans (NPLs) amid nationwide protests calling for reform of HUD’s distressed note sale program. Single-Family Loan Sale SFLS 2014-2 includes 15,232 single-family, non-performing mortgages with a total unpaid principal of $2.3 billion. The sale consists of 10 loan pools ranging from $97 million to $825 million with collateral dispersed across the country, according to loan sale advisor DebtX. It is scheduled to bid on Sept. 30. On June 11, HUD sold a $4.8 billion portfolio of NPLs, the first of a two-part sale. The national offering consisted of approximately 23,200 loans divided into 16 pools ranging from $93 million to $1 billion. The loans are backed by properties across the ...

September 12, 2014 - Inside FHA Lending

FHA Lending Back on Track with <680 Score

The average FHA credit score in the second quarter of 2014 continued to decline from the record highs of 2011, but remains well above the levels preceding the mortgage and credit crisis, according to FHA’s latest report to Congress on the state of the agency’s Mutual Mortgage Insurance Fund. The FHA’s second-quarter average credit score of 680 was 3 points below the previous quarter’s score and 13 points below the score during the same period last year. The report’s data suggest that FHA has accomplished its goal of shifting its market share to the 620-679 credit score bucket consistent with its target market while ceding its share of loans with scores exceeding 720 to the private MI sector. The last time borrowers’ average credit score hit 680 was in the second quarter of 2009. FHA officials said they are working to have 75 percent of the FHA lending in the ...

September 12, 2014 - Inside FHA Lending

MMIF in Negative Cash Flow in 2Q14, Says Report

The FHA Mutual Mortgage Insurance Fund account balances fell by $0.5 billion during the second quarter of 2014 to $45.3 billion due to higher claim payments and property expenses. Observers, nonetheless, remain optimistic the fund will return to full stability in 2015 with no further change in the mortgage insurance premium charged to borrowers. The MMIF’s total balances peaked at $48.4 billion in the third quarter of 2013 and then slipped gradually over the last three quarters, according to data in the FHA’s latest report to Congress regarding the financial health of the Mutual Mortgage Insurance Fund. Total revenues from premium collections, property sale, and note sale proceeds were $4.3 billion, while $5.1 billion was paid to cover claims and property expenses in the second quarter. This resulted in a negative$821 million cash flow in the quarter, the smallest outflow since ...

September 12, 2014 - Inside Nonconforming Markets

Servicers’ HAMP Performance Slipping

Servicer performance in the Home Affordable Modification Program is at one of the lowest levels in the five-year history of the loss mitigation program, according to the Treasury Department and the Special Inspector General for the Troubled Asset Relief Program. Last week, the Treasury revealed that four of the seven largest servicers participating in the non-agency portion of HAMP need at least moderate improvement. CitiMortgage was ranked the lowest among the large servicers and will have its HAMP incentive payments withheld by the Treasury until the servicer’s performance improves.

September 12, 2014 - IMFnews

What We're Hearing: A Mortgage M&A (Mini) Tidal Wave? / A Vendor Shakeup as Well? / 34 LOS Vendors? / It’s Hard Breaking Into Subservicing / Walter, the Best of the Three / The CFPB Wasn’t Even There!

The days of the megabanks – Wells Fargo, JPMorgan Chase and Bank of America – buying mortgage companies (of any size) are over. Never again. Right?...

September 12, 2014 - Inside MBS & ABS

Post-Crash High in Prices Paid for Distressed Mortgages May Lead to More Securitizations

Investors are paying up for distressed mortgages these days, fueling talk that the market might see more in the way of securitizations. “Buyers of non-performing loans want to securitize,” said Brian Dunn, senior vice president of MountainView Capital Group. “They like the [real estate mortgage investment conduit] structure.” According to Dunn, the securitization of nonperforming mortgages “has taken off...

September 12, 2014 - Inside MBS & ABS

Reg AB II Likely Brings Benefits, Higher Costs for Market Participants in Auto Loan/Lease ABS Sector

The recent adoption by the Securities and Exchange Commission of its Regulation AB II disclosure rule is expected to be a “credit positive” for the auto loan and lease ABS sector, but it probably will also raise costs for market participants and, ultimately, consumers, according to an industry consensus of the new rule. The new regulatory regime mandates standardized loan-level disclosures for ABS backed by auto loans and leases, as well as other classes, as reported previously. The loan-level data have to be provided on the SEC’s free online database known as the EDGAR system. Although specific data requirements vary by asset class, the new asset-level disclosures generally will include...

September 11, 2014 - IMFnews

How Much Capital is Enough for a Nonbank?

Capital standards for nonbank mortgage firms is inevitable. But what should the requirement be?

September 11, 2014 - Inside Mortgage Finance

Growth in Subservicing Activity Begins to Ebb; Dovenmuehle and Cenlar Continue to Dominate

The volume of mortgages subserviced for others declined slightly in the second quarter, but still face bright prospects as many firms contemplate outsourcing the processing chore to specialists that can effectively handle an increasing array of compliance regulations. The nation’s three largest subservicers – Dovenmuehle, Cenlar and PHH Mortgage – had a combined subservicing market share of 55.8 percent at June 30, dominating the sector, according to exclusive survey figures compiled by Inside Mortgage Finance. On a sequential basis, Dovenmuehle grew...[Includes one data chart]

September 11, 2014 - IMFnews

Ocwen Tells Analysts that MSR Transfers Will Be Much Lower

it appears the halcyon days of legacy MSR sales are over. Or so Ocwen is telling Wall Street.

September 11, 2014 - IMFnews

Industry Vet Willie Newman Establishes New Platform, Agrees to Buy $1 Billion-Plus Lender

“Our intention is to be a top tier lender,” said Newman.

September 10, 2014 - IMFnews

Short Takes: Nonbanks Rule in the Capital Category? / Don’t Even Ask About the Wells-Ocwen MSR Deal / Mortgage Applications Tank / Fannie and Freddie Beat the Tax Man / Cordray on HMDA

We understand that when stock analysts meet with Ocwen management, executives at the nonbank usually tell them to not even ask about the deal.

September 10, 2014 - IMFnews

Wellington Management Dumps Most of its Stake in Ocwen

"Wellington's going to do what Wellington's going to do," said one observer of the stock sale.

September 9, 2014 - IMFnews

Short Takes: GSE Reform is Dead, Right? / Sen. Warren Wants Wall Street Scalps / If There’s Hope, It Lies With HELOCs / Mortgage Master Continues to Recruit LOs

Roughly 25 percent of lenders said they hope to enter the home equity lending market over the next 12 months.

September 9, 2014 - IMFnews

Stonegate Mortgage Likely to Securitize Residential Servicing Rights

Since the housing bust, very few mortgage firms have securitized MSRs, though they have used securitization vehicles for advances.

September 8, 2014 - IMFnews

Short Takes: CBO Calls ‘Johnson-Crapo’ a Financial Winner / Can the GOP Ram Thru a GSE Bill Next Year? / Radian Reports Strong MI Volume / Ellington Prices Shares / MBA Announces Realignment

One question we occasionally hear is this one: If the GOP this fall gains control of the Senate can’t they just push through a GSE reform bill and hope to override a presidential veto, if there is one?

September 8, 2014 - IMFnews

MBA Weighs in on FHFA Audit of TBW’s Failure, Doesn’t Like IG’s Recommendation

MBA's Gross noted that the cost of changing external auditors is “significant,” both for large and small seller/servicers, whether they are public or not.

September 8, 2014 - IMFnews

Treasury Withholds HAMP Payments to Citi, Other Servicers Threatened

CitiMortgage performed the worst on the assessment of non-agency HAMP activity for the second quarter of 2014, with the Treasury claiming that the servicer needs to make substantial improvements.

September 8, 2014 - IMFnews

‘Loans Serviced for Others’ Continue to Fall at Depositories

A number of banks have been motivated to reduce their MSR holdings because of concentration limits imposed by the emerging Basel risk capital rules.

September 5, 2014 - Inside Mortgage Trends

Nonperforming Loan Prices at Post-Crash Highs

Prices paid for nonperforming residential loans have continued to rise this year, which is great news for sellers of distressed product, but not so good for buyers. In fact, there are signs that certain buyers are dropping out of the market because returns are getting too low for their tastes. One Midwest-based buyer of NPLs told Inside Mortgage Trends that he recently closed a fund that was banking his acquisitions because investment returns are now in the 9 percent range ...

September 5, 2014 - Inside Mortgage Trends

Banks Continued Shedding MSRs In 2Q14; Valuations Drift Lower

Commercial banks and thrifts continued to reduce the amount of mortgage servicing they do on behalf of other investors during the second quarter of 2014, according to a new Inside Mortgage Trends analysis of bank call-report data. With declining interest rates during the period and the prospect of faster prepayments, most banks also wrote down the fair market value they placed on their mortgage servicing rights, the data show. Banks and thrifts serviced a total of ... [Includes one data chart]

September 5, 2014 - Inside The GSEs

Freddie Should Expand Reviews of Servicer Reimbursements, Says IG

Although Freddie Mac’s official watchdog found the GSE’s review process of servicer reimbursement claims to be “generally effective,” some tens of millions of dollars could be saved by scrutinizing servicer payments for costs incurred on loan defaults. According to an audit issued last week by the Federal Housing Finance Agency’s Inspector General, Freddie reimbursed 460 of its servicers $1.4 billion in 2013 but identified and denied $126 million in what the IG calls “erroneous” claims. The IG noted that Freddie’s top 10 servicers, relative to total reimbursements, accounted for 87 percent of all reimbursements made by Freddie in 2013.

September 5, 2014 - IMFnews

What We’re Hearing: Good, Let the Banks Get Out of Mortgages / Quicken Loans Comes on Strong / Can JPM Even Compete with Quicken? / Who Might Buy Ocwen, Nationstar? Anyone? / Carrington Expands in the Midwest / Dovenmuehle Who?

Does JPM's Jamie Dimon really care about the mortgage business? Or is he in it for the CRA credits?

September 5, 2014 - Inside MBS & ABS

S&P Considers New Rating Criteria for Servicer- Advance MBS to Spur Activity in the Sector

Standard & Poor’s is evaluating comments on a proposal to incorporate new criteria for rating residential MBS backed by mortgage servicer-advance receivables. Issuance of servicer-advance MBS has been scarce in 2014 due to the heightened regulatory scrutiny on nonbank servicers and potential ratings volatility, leading to fewer purchases of mortgage servicing rights. So far, only one deal – a $400 million unrated servicer-advance securitization in early April – has been seen this year. But with additional clarity being provided in S&P’s proposed ratings criteria and the revised methodology getting finalized over the near term, “issuers may start feeling...

September 5, 2014 - Inside MBS & ABS

Ginnie ‘Eagle’ Was Once a Red Hot Item for Lenders, but New Issuer Applications are Slowing

Ever since the housing bust, mortgage bankers have coveted the Ginnie Mae “eagle,” which allows them to issue and service the agency’s MBS, but the pipeline of new applications is slowing. According to figures provided to Inside MBS & ABS, the agency had received 78 new applications through the end of July compared to 89 in fiscal 2013 and 99 the prior year. In an interview with this newsletter, Ginnie President Ted Tozer acknowledged the decline in applications, but didn’t seem all that concerned, adding: “I think we received a bunch recently.” In other words, applications could wind up...

September 5, 2014 - IMFnews

Industry Continues to Battle the CFPB Over Unchecked Complaint Narratives

“The CFPB’s plan will feature only one side of the story, and such one-sided accounts will not advance the CFPB’s mission of better informing and helping consumers,” said FSR chief Tim Pawlenty.

September 5, 2014 - IMFnews

Mortgage Banking Employment Increased in July, but Brokers Cut Jobs

There are signs of life in mortgage hiring, depending on the job description. Firms looking to increase staff levels include the lending arm of Bayview Asset Management, Citadel Loan Servicing and Carrington Mortgage Services.


Over the next six months we plan to hire this many more additional loan officers:

1 to 10 (We're being careful.)
11 to 30 (We're optimistic.)
More than 30 (We're in a growth mode as the banks get out.)
We're cutting back. (Are you nuts? It's ugly out there.)

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