Mortgage Servicers

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

November 25, 2015 - Inside FHA/VA Lending

VA Issues Servicing Guidance for Conveying Property in Florida

The Department of Veterans Affairs has issued new guidance for submitting title documents to the VA when conveying a property in Florida. The servicing guidance addresses potential lien problems in relation to past due and unpaid homeowners association obligations. As part of conveying a property in the Sunshine State, documentation must be complete and in order so that VA can validate a clean title that will be acceptable to lenders, buyers, title companies and attorneys in the community where the property is located. Thus, property conveyance usually involves providing an owner’s title-insurance policy with no exclusions, other than for taxes that have not yet been billed but may be accrued against the property. Under Florida law, if an HOA is properly named in the foreclosure, a borrower or its assignees or successor-in-interest is only required to pay the lesser of either the ...

November 25, 2015 - Inside FHA/VA Lending

Actuarial Report Positive on MMIF; Pricing Adjustment More Likely?

Despite FHA’s denial of further mortgage insurance premium reductions any time soon, stakeholders are holding out hope for another cut in the near future. Those supporting the idea of another pricing adjustment say it could open the door wider for more borrowers to use the FHA single-family program and generate the volume needed to offset any potential revenue loss that may result from the reduction. But Housing and Urban Development Secretary Julian Castro and his top officials have denied any plans of reducing MIPs. Castro has called such talk “premature,” despite a positive FY 2015 actuarial evaluation of the FHA’s Mutual Mortgage Insurance Fund, which some claim could be used to justify another premium reduction. Principal Deputy Assistant Secretary for Housing and Interim FHA Chief Ed Golding, in a press briefing, said the focus is elsewhere and not on ...

November 25, 2015 - Inside Nonconforming Markets

Subprime Delinquencies Decline; Long Foreclosures

Delinquencies on subprime mortgages continued to decline in the third quarter of 2015, according to the Mortgage Bankers Association. The trade group said the non-seasonally adjusted serious delinquent rate for subprime mortgages hit 12.66 percent at the end of September, the ninth consecutive quarterly decline. The subprime serious delinquent rate was down from 13.40 percent in the second quarter of 2015, 15.52 percent in the third quarter of 2014 and 21.25 percent in ...

November 25, 2015 - Inside Mortgage Finance

Mortgage Delinquencies Drop Across the Board to Lowest Levels in Years, Latest Industry Data Show

Delinquency rates for residential mortgages fell during the third quarter of the year across all product types and improved at the 30-day, 60-day and 90-day past-due markers, according to the Mortgage Bankers Association’s latest national delinquency survey. The delinquency rate for residential mortgages dropped to a seasonally adjusted rate of 4.99 percent of all loans outstanding at the end of the third quarter of 2015 – the lowest level since the first quarter of 2007, said the MBA ...

November 27, 2015 - Inside MBS & ABS

Fannie Mae Reveals Winning Competitive NPL Bids, Freddie Mac Opens Bidding for Its Eighth NPL Sale

Fannie Mae has announced the winning bids for its third nonperforming loan sale while Freddie Mac has begun accepting bids for its eighth NPL transaction for 2015. Up for sale in the Fannie Mae deal were approximately 7,000 NPLs totaling $1.24 billion in unpaid principal balance, divided among three pools. The winning bidders in the transaction are Fortress, through its New Residential Investment Corp., for the first and third pools and Goldman Sachs for the second pool. The government-sponsored enterprise announced the sale in October to lighten its inventory of NPLs and manage credit losses on its delinquent loan portfolio. The GSE gave up on the severely delinquent loans after attempts to cure them through loss mitigation failed. Investors and ...

November 27, 2015 - Inside MBS & ABS

Borrowers Behaving Badly? Fitch Says More CMBS Loan Profiles Are Changing Post-Closing

Borrowers are increasingly changing the terms for loans backing recently issued commercial MBS shortly after the deal closes, said Fitch Ratings. The rating service said it has received about 15 requests this year for rating confirmations pertaining to loans from 2014 or 2015 vintage deals. While the majority of requests have been loan assumptions by new borrowing entities or ownership structures, a handful have contemplated more fundamental changes to other loan terms. But Fitch said the problem arises when some of the proposed changes would have required that the loan be modeled differently or more conservatively, had it known about the changes prior to issuance. The rating agency is especially concerned about borrowers trying to add more debt. “Additional debt, ...

November 27, 2015 - Inside MBS & ABS

Bank-Serviced Mortgages See Higher Loss Severities Than Those Serviced by Nonbanks, Moody’s Finds

Residential mortgages serviced by banks in top foreclosure states are getting hit with higher loss severities than those serviced by nonbanks, largely because banks have so far dealt with more repercussions from regulatory settlements, according to Moody’s Investors Services. Moody’s compared major servicers’ subprime loss severities for loans in the top three foreclo-sure states of Florida, New York and New Jersey, which collectively make up about 42 percent of all subprime mortgages in foreclosure in non-agency RMBS. The rating service found that loss severities on bank-serviced mortgages in Florida averaged 95 percent, versus 81 percent for nonbank-serviced mortgages. Drilling down in the data a bit to review the extremes, on one end of the continuum for banks was CitiMortgage, which ...

November 25, 2015 - IMFnews

It’s Thanksgiving Week but the MSR Auctions Keep Coming

The average loan size is $15.36 million, the average interest rate 3.60 percent.

November 25, 2015 - IMFnews

CFPB Inspector General Has Five Agency Assignments Slated for 1Q16

First on the IG's "to-do" list is an audit of the CFPB’s space-planning activities, largely in response to the bureau’s renovation of its headquarters building.

November 25, 2015 - IMFnews

Servicing ‘Marks’ Ugly in 3Q, but It’s All in the Rearview Mirror, Right?

All of the red ink spilled on MSR marks in the third quarter will be reversed and turned into gains when servicers report their results early next year? “Generally, that’s correct,” said one mortgage CEO.

November 24, 2015 - IMFnews

IMA Working on MSR Deals that Could Net Almost $3B of Flow and Bulk

It may be holiday week, but Interactive Mortgage Advisors is out with a handful of new MSR offerings...

November 24, 2015 - IMFnews

Freddie Mac: Regulation Could Re-Ignite Consolidation of the Servicing Market

"Many servicing functions resemble the assembly line processes used in auto manufacturing," said a new report from Freddie Mac.

November 24, 2015 - IMFnews

Mortgage Profits at Banks Take a Turn for the Worse in 3Q15

Unless mortgage-banking income takes another steep downturn in the fourth quarter, 2015 will likely prove more profitable than 2014 by a slim margin.

November 23, 2015 - IMFnews

Ocwen Restarts Stalled Share Buyback Program, but Offers No Assurances

California had threatened to pull the company’s license over document requests that Ocwen was ignoring at the time. Eventually, the two parties came to terms.

November 23, 2015 - IMFnews

Eventually, loanDepot Will Go Public; As for the CFO Resignation…

One investment banker familiar with the firm said, “a CFO disruption so close to the IPO just doesn’t look good.”

November 20, 2015 - Inside Mortgage Trends

Courts Split on Liability for Servicing Contractors

Servicers’ use of property-management contractors has helped save costs and increase efficiencies but also opened servicers to liability, according to an analysis of litigation involving contractors. Christopher Odinet, an assistant professor of law at the Southern University Law Center, noted that servicers’ reliance on property-management firms increased in recent years due to long timelines for delinquencies and foreclosures. Servicers hire the firms to inspect ...

November 20, 2015 - Inside Mortgage Trends

Altisource Asset Management Stock Still Falling

When you hold an earnings call and not one analyst shows up to ask a question, one of two things is going on: business is so good that no one needs to ask, or research firms have dropped your stock. The latter appears to be the case with Altisource Asset Management Corp., one of three publicly-traded companies that can trace its lineage to Ocwen Financial Corp., a once top-five ranked servicer that’s in the process of shrinking, deleveraging its balance sheet and trying to figure out ...

November 20, 2015 - IMFnews

What We’re Hearing: FHA Premium Cut Coming…Eventually / A 4 Percent Capital Minimum for the FHA MMIF?/ Good, Let the Banks Leave / Tony Hsieh Addresses Scuttled IPO / Can loanDepot’s LOs Surf? / New Day Fined by the NYDFS

In the same blog post, Hsieh – who did not talk to the press about the scuttled IPO – described loanDepot as a “unicorn startup,” calling it “one of the very few success stories not from Silicon Valley.

November 19, 2015 - Inside Mortgage Finance

Sales of Bulk Servicing Packages Slow of Late, But Rising Rates Should Change That; A New Sale Advisor Emerges

Selling mortgage servicing rights into a declining interest rate environment can be tough sledding, but now that rates have headed north again, advisors that play in the space are anticipating strong sales through the fourth quarter and into the early months of 2016. “In the third quarter, we saw a number of large deals and even a handful of $500 million deals that just didn’t get done,” said Stephen Harris, managing director of MIAC Capital Markets. Harris also pointed out a ...

November 19, 2015 - IMFnews

Moody’s Assigns Provisional Ratings to Nationstar Nonperforming HECM MBS

The HECMs backing the bond are either in default, due and payable, in foreclosure or REO...

November 19, 2015 - IMFnews

Short Takes: Industry to Fed: Raise Rates Already / Want to Increase Housing Affordability? Convince Sellers to Cut Their Asking Prices / UG Rolls Out Expanded Guidelines for Doctors and Lawyers / CHMI Closes on MSR Purchase / Landes to Head Sales at Stonegate

Quite a few executives believe the central bank should move forward with a “one and done” strategy and be done with it...

November 19, 2015 - IMFnews

New Bulk MSR Offerings from MIAC and Phoenix Capital

Interest rates are rising and that means more MSR packages are likely to hit the market.

November 18, 2015 - IMFnews

Fitch Downgrades Residential Credit Solutions’ Servicer Ratings, Citing Regulatory Issues

A few months back, rumors began circulating that ACMI was contemplating taking bids on its servicing business.

November 18, 2015 - IMFnews

Ocwen Looks Beyond Acquisitions of MSR Assets

In order to grow its servicing portfolio through acquisitions, Ocwen has to satisfy conditions set in detailed consent orders...

November 18, 2015 - IMFnews

Selene Finance Hires Clayton Executive Tom Donatacci

Donatacci helped steer Clayton from survival mode during the financial crisis to solid profitability before the due diligence vendor was sold to Radian Group for $305 million in 2014.

November 17, 2015 - IMFnews

Hedge Fund Gets Right to Own 25 Percent of Walter/Ditech

In January, Birch Run reported a 17.8 percent ownership stake in Walter, but has since increased it to 19.8 percent.

November 16, 2015 - Inside the CFPB

Consumer Complaints About Debt Collection Fall in 3Q15

Consumer complaints about debt collectors appear to be improving somewhat, according to the latest analysis by Inside the CFPB of data submitted to the bureau. Gripes were down 9.4 percent during the third quarter, but off a barely perceptible 0.3 percent at the nine-month mark versus a year ago. Many of the top 50 companies ranked by number of complaints saw drops of double digits during the period ending Sept. 30, 2015, whereas a handful of companies saw consumer grumbling rise by triple digits year over year. In some instances, however, both dynamics occurred at the same company, the data show. Complaints about collection attempts were the leading consumer criticism, followed by disclosure verification and communication tactics. Supervisory Illustrations On...

November 16, 2015 - Inside the CFPB

CFPB Sees More Problems With Originations, Servicing Improves

The CFPB continues to see a host of noncompliance issues with mortgage lenders – but some notable improvement on the servicing side of the industry too. According to the CFPB’s latest supervisory highlights report, the bureau cited a range of problems lenders are having originating mortgages. For instance, regulators saw evidence of failing to fully comply with the requirement that charges at settlement not exceed amounts on the good faith estimate by more than specified tolerances. Some lenders also are failing to fully comply with requirements for completion of HUD-1 settlement statements, to provide homeownership counseling disclosures, or to provide accurate loan servicing disclosure statements. Other lenders are not complying with consumer financial information privacy requirements, the report indicated. In other ...

November 16, 2015 - IMFnews

Short Takes: Private MIs Want Higher FHA Capital Standards / Ocwen Sells Short-Term Paper / CoreLogic Updates Risk Model on Jumbos / Due Diligence Providers Added / Correction

Some believe the FHA MMIF minimum capital standard should be 4.5 percent, not 2.0 percent.

November 16, 2015 - IMFnews

Okay, So the MMIF is North of 2 Percent, but Don’t Expect a Premium Cut

So, will the FHA cut the MIP? Absolutely not, at least not at this time.

November 16, 2015 - IMFnews

Silver Hill Now Taking Applications on SBC Loans, Including Multifamily

A nationwide roll out of the small-balance product starts next year.

November 13, 2015 - Inside FHA/VA Lending

Around the Industry

FHA to Unveil FY 2015 MMIF Audit Results. On Nov. 16, the FHA will release its 2015 annual report to Congress, a document that historically has included the results of the annual actuarial audit of the Mutual Mortgage Insurance Fund, or MMIF. Early in the day, Ed Golding, principal deputy assistant secretary for the Department of Housing and Urban Development’s Office of Housing, is scheduled to brief reporters on the report and take questions. As reported by Inside FHA/VA Lending, the reduction in the annual mortgage insurance premium earlier this year has put the MMIF on an accelerated path to recovery. But whether the ensuing increase in FHA production – which translates into additional premiums – will be enough to get the fund back to its statutory 2 percent capital reserve ratio remains ...

November 13, 2015 - Inside FHA/VA Lending

RHS Proposes to Require Servicers To Order Liquidation Appraisal

The U.S. Department of Agriculture Rural Housing Service is seeking comment on a proposed rule that would require servicers to order a “liquidation value” appraisal when estimating a loss claim against the USDA Section 502 Single-Family Housing Guaranteed Loan Program. The purpose of the revised proposed rule is to help reduce processing time, reduce cost and expedite claim submission. Currently, if a real estate-owned property remains unsold at the end of the prescribed marketing period, the RHS will order a liquidation-value appraisal to estimate the cost of holding and disposing of the property. The costs associated with obtaining the liquidation-value appraisal can then be included in the liquidation costs paid under the guarantee. Liquidation costs include attorney fees, liquidation-value appraisal and foreclosure costs. Annual fees advanced by the lender to the RHS are ...

November 13, 2015 - Inside FHA/VA Lending

VA Sets Policy for Determining Marital Status in Loan Applications

The Department of Veterans Affairs has issued a policy clarifying how VA lenders should process and underwrite mortgage loan applications when borrowers assert they are married. The policy, which took effect immediately, requires lenders to accept a veteran’s assertion of spousal status when he or she is applying for VA home loan benefits. The policy came a few months after the U.S. Supreme Court held, in Obergefell v. Hodges, that the Fourteenth Amendment of the U.S. Constitution requires a state to issue a license for same-sex marriages and to recognize as valid and legal such marriages performed out of state. The SCOTUS decision opened the door for VA to recognize all same-sex marriages regardless of a veteran’s state of residence. The policy also directs VA personnel to apply the same level of scrutiny to all veteran marriages, regardless of whether they are ...

November 13, 2015 - Inside FHA/VA Lending

MPF Program, Ginnie Mae Unveil Broader Government MBS Product

The Federal Home Loan Bank System is seeking to boost its share of government-backed lending and the Ginnie Mae market with a new servicing-release option for FHA, VA and rural housing mortgages that are sold into the Mortgage Partnership Finance program. The new feature adds to an existing servicing-retained execution in the MPF Government Mortgage-Backed Securities program. The current servicing-retained component requires participating lenders to service loans they originate and sell into the MPF conduit. The servicing-release option from Nationstar Mortgage, a top-10 mortgage servicer based in Dallas, will provide lenders with greater pricing flexibility so they can become more competitive in the communities they serve, said Matt Feldman, president of the Chicago FHLB. Only FHLBank members that are participants in MPF can use the government MBS program. In order to ...

November 13, 2015 - Inside FHA/VA Lending

PHH Mulls Continued Participation In FHA, Will Proceed Cautiously

Facing the possibility of a potential False Claims Act lawsuit, PHH Corp. is reconsidering its participation in the FHA mortgage insurance program. Though PHH’s FHA segment represents only 3 percent of its mortgage volume over the past 12 months, the company will proceed cautiously as it evaluates the risk-adjusted return of FHA products and programs, said Glenn Messina, PHH president and chief executive.Ranked 50th among FHA lenders as of June 30, 2015, PHH expects more regulatory challenges in 2016 as well as rising compliance costs, said Messina during a third-quarter earnings call. In its latest quarterly filing, PHH disclosed receiving a subpoena from the inspector general of the Department of Housing and Urban Development for documents related to, among other things, FHA loan origination and underwriting practices. Like several other FHA lenders, PHH is ...

November 13, 2015 - Inside FHA/VA Lending

GNMA Issuers Reach Deep for FHA Loans, Get More Cautious

Mortgage lenders are more willing to expand the credit box for FHA borrowers, but they appear to be getting more cautious about FHA lending, according to a new Inside FHA/VA Lending analysis of Ginnie Mae mortgage-backed securities data. Over two thirds of FHA loans securitized in the first nine months of 2015 had credit scores below 700, and 6.2 percent of them had scores of 620 or lower. By comparison, 47.0 percent of VA loans were below 700 and just 4.4 percent were in the lowest category. But FHA lenders became more cautious as the year wore on. In the first quarter, 6.8 percent of FHA loans had scores of 620 or lower. That fell to just 6.0 percent in the third quarter. The FHA purchase-mortgage sector skews even further away from the riskiest borrowers and toward safer ground. The share of FHA purchase loans with scores of 620 or lower fell from 5.8 percent in the first ... [ 2 charts ]

November 13, 2015 - Inside Nonconforming Markets

Ocwen Looks Beyond Acquisitions of MSRs

Ocwen Financial continues to work toward satisfying regulatory requirements that would allow the nonbank to resume acquisitions of mortgage servicing rights. However, officials stress that MSR acquisitions aren’t the main focus for the company. “Right now, I don’t see in the marketplace a lot of opportunities for the kind of servicing transfers that would interest Ocwen and that’s why we’re focusing more of our efforts on generating new assets ... [Includes one data chart]

November 13, 2015 - IMFnews

What We’re Hearing: loanDepot, What the Heck Happened? / Marketing Itself as Technology and Consumer Finance Firm / Eventually, the IPO Will Happen / Salivating Short Sellers? / Waiting on the FHA MMIF Audit

A handful of hedge funds were salivating at the prospect of shorting loanDepot's stock...

November 13, 2015 - IMFnews

Recapping the GSEs While Promoting Affordable Housing – Can Such a Concept Fly?

The authors want the Treasury Department to end the quarterly profit sweep and allow Fannie and Freddie to raise about $100 billion in additional capital through several rounds of new common stock sales...

November 13, 2015 - Inside MBS & ABS

SFIG Issues Dozens of Model Reps and Warrants To Help Reinvigorate Non-Agency MBS Market

The Structured Finance Industry Group put out the third edition of its RMBS 3.0 “Green Papers” initiative early this week, featuring dozens of model representations and warranties for new non-agency residential MBS, including a range of proposed standardized constructs. “This release substantially builds upon our growing series of Green Papers, which are aimed at restoring confidence to the ‘private label’ RMBS market,” the trade group said. The first and second editions were released in 2014. The 39 model reps and warrants included in the third edition complete...

November 13, 2015 - Inside MBS & ABS

MBS-Investing REITs Continue to Shy Away From Mortgage Securities. Is the MBS ‘Trade’ Dead?

Publicly traded real estate investment trusts that buy MBS continued to whittle down their positions in government and agency product during the third quarter, a trend that some fear may have no bottom. Market leader Annaly Capital Management trimmed its MBS holdings to $66.3 billion during the period, a 1.9 percent sequential decline, but an ugly 18.6 percent drop compared to the third quarter of last year. It is investing more of its cash in commercial product. Number two ranked American Capital Agency Corp. was...[Includes one data table]

November 13, 2015 - IMFnews

Jumbo MBS on the Mend? Three Recent Deals Spark (Muted) Optimism

Industry analysts suggest that while liquidity for new jumbo MBS remains limited, the securities can be a good investment.

November 12, 2015 - IMFnews

loanDepot Delays IPO, Citing Market Conditions; Sources Question Valuation

On Thursday, Inside Mortgage Finance quoted one source as saying loanDepot’s valuation is “a bit aggressive.”

November 12, 2015 - Inside Mortgage Finance

Wells Settles with DOJ for $81.6 Million on Treatment of Borrowers in Bankruptcy

Seemingly small differences in monthly mortgage payments for borrowers in bankruptcy helped prompt an $81.6 million settlement between Wells Fargo and the Department of Justice late last week. The DOJ’s U.S. Trustee Program said Wells repeatedly violated federal bankruptcy rules that took effect in December 2011 and imposed more detailed disclosure requirements to ensure proper accounting of fees and charges for borrowers in bankruptcy. The main instance cited in the settlement agreement was...

November 12, 2015 - Inside Mortgage Finance

Is a Five-Year Old Nonbank That Services Just $21 Billion in Loans Worth Upwards of $621 Million?

loanDepot Inc. this week priced its much anticipated initial public offering, valuing its soon-to-be-listed shares – 34.5 million units in total – at $18 each or roughly $621 million, a lofty valuation for a company that owns just over $20.9 billion in mortgage servicing rights. Few in the industry are questioning loanDepot’s explosive growth since its inception five years ago, but eyebrows have been raised about the anticipated size of the deal. “It’s...

November 12, 2015 - Inside Mortgage Finance

MSR Marks Caused Plenty of Red Ink in 3Q15, But a Recovery is at Hand – And Then Some

Thanks to declining interest rates and higher prepayment speeds in the third quarter – especially on Ginnie Mae receivables – several publicly traded nonbanks were forced to write down the asset value of their mortgage servicing rights, causing millions of dollars in red ink. According to a review by Inside Mortgage Finance of the earnings statements of six nonbanks, the combined servicing markdown was an ugly $448 million. The group includes Nationstar Mortgage, Ocwen Financial, PennyMac Financial Services, PHH Corp., Stonegate Mortgage and Walter Investment Management Corp., the parent of Ditech Financial. Walter took...

November 12, 2015 - IMFnews

Short Takes: And the Lenders One President Is… / Mortgage Ads on the Front Page of The Washington Post / Atlantic City’s Foreclosure Crisis / First American Reports Order Increase / CoreLogic Expands Multifamily Effort

Although the home foreclosure inventory is falling compared to a year ago, some metropolitan areas are seeing an increase in new filings, including Atlantic City.

November 12, 2015 - IMFnews

In IPO Documents, Nation’s No. 11 Ranked Lender loanDepot Values Itself at $621 Million

The last nonbank mortgage lender to go public was Stonegate Mortgage, which brought its IPO to market two years ago.

November 12, 2015 - IMFnews

CoreLogic: Foreclosure Inventory Down to 470,000 Homes and Sinking Fast

Over the past 12 months, Florida had the highest number of completed foreclosures at 91,000.


Should the FHA cut premiums?

Yes, the MMIF has surpassed the 2 percent minimum. It’s time to help first-time home buyers.
Yes, but not until mid-2016 at least, when we see how the fund is doing.
No. The MMIF needs to rebuild and prepare for another potential downturn – just in case.
No. We believe the minimum ratio should actually be raised to 4 percent or higher.
I am undecided.

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