Mortgage Servicers

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

May 22, 2015 - Inside Mortgage Trends

Banks Report Solid Increase in Mortgage Banking Income in First Quarter 2015

Commercial banks and thrifts earned $3.99 billion from their mortgage-banking operations during the first quarter of 2015, according to a new ranking and analysis by Inside Mortgage Trends. Mortgage-banking income was up 12.7 percent from the previous quarter and 19.0 percent ahead of the pace set in the first three months of 2014. Early 2015 was no record-setter, by any means, but profits were well below the levels reached in the middle of last year. The call-report data do not separate...[Includes one data table]

May 22, 2015 - IMFnews

What We’re Hearing: FHA Readies a Bromide? / Another FHA Lender May Sue HUD / Kudos for Quicken’s Bill Emerson / A Big M&A Deal Brewing? / At Least FBR’s Paul Miller is Optimistic

We understand that at least one other prominent FHA lender is contemplating filing a lawsuit against the government as well...

May 22, 2015 - Inside MBS & ABS

Changes to Servicing Among the Many Reforms Sought By Investors Before Returning to Non-Agency MBS

Industry participants, both on their own and with help from the Treasury Department, continue to work on reforms to attract investors to buy new non-agency MBS. Servicing standards will likely play a key role in the reforms, though progress has been slow. The Structured Finance Industry Group published its first RMBS 3.0 “green paper” in August 2014 with a follow-up in November. The Treasury Department has been working with industry participants toward the issuance of a benchmark non-agency MBS since at least September 2014. Analysts at Fitch Ratings stressed...

May 22, 2015 - Inside MBS & ABS

Banks Show Preference for Ginnie Securities As They Increase MBS Holdings in Early 2015

Commercial banks and thrifts reported robust growth in their MBS portfolios during early 2015, including a special appetite for Ginnie Mae MBS, according to a new Inside MBS & ABS analysis of call-report data. Commercial banks and thrifts held $1.579 trillion of residential MBS at the end of March, a 2.6 percent increase from the previous quarter. It was the industry’s biggest MBS portfolio since the third quarter of 2012, when banks and thrifts held a record $1.617 trillion of mortgage securities. The biggest gain was...[Includes two data tables]

May 22, 2015 - Inside MBS & ABS

MBS Market Faces Liquidity, Demand Issues When the Fed Finally Decides on Exit Strategy

The mortgage market faces a big challenge when the Federal Reserve figures out how to unload its massive $1.7 trillion portfolio of agency MBS, but anticipated widening of spreads could at least improve market liquidity. The fixed-income market has seen a sharp decline in trading volume resulting in part from regulatory issues, said Mike Fratantoni, chief economist at the Mortgage Bankers Association, during the group’s annual secondary market conference in New York this week. “Banks have been hoarding liquidity instead of providing it to the market,” he said. Average daily trading volume of MBS has dropped...

May 21, 2015 - Inside Mortgage Finance

Class Certification Denied in Bank’s Fair-Lending Suit; Groups Sue Fannie for Bad REO Practices

In a ruling that may impact future fair-lending class actions, a federal district court judge in Manhattan has denied class certification in a lawsuit brought by the American Civil Liberties Union and National Consumer Law Center against global investment bank Morgan Stanley. Filed in October 2012, the suit was brought on behalf of African American borrowers in Detroit who obtained subprime loans from New Century Mortgage, a now-defunct originator that sold the loans to secondary-market purchasers, including Morgan Stanley, which then securitized them. New Century originated...

May 21, 2015 - Inside Mortgage Finance

First-Time Homebuyer Share Up Sharply This Spring, Helped By Reduction in FHA Insurance Premiums

The first-time homebuyer share of home purchases in April hit its highest level in more than four years, according to the Campbell/Inside Mortgage Finance’s HousingPulse Tracking Survey. The purchases have been boosted by a reduction in the FHA’s mortgage insurance premiums and help rebut concerns about the demise of the first-time homebuyer. First-time homebuyers accounted for 37.6 percent of home purchases in April, up from a 34.3 percent share a year ago, based on three-month moving averages. The last time the first-time homebuyer share of home purchases was above 37.6 percent was in August 2010 at a 40.0 percent share. Tom Popik, research director of Campbell Surveys, said...

May 21, 2015 - Inside Mortgage Finance

Lenders Prevail in Novel Lawsuits Involving Loss Mitigation, Allegations of Predatory Lending

Separate lawsuits against major banks were dismissed last week, providing some insight on how lenders and servicers can defend against claims brought by consumer advocates under the False Claims Act and allegations of redlining and reverse redlining. In 2013, Advocates for Basic Legal Equality alleged that U.S. Bank’s servicing practices violated the FCA. U.S. District Court Judge Jack Zouhary dismissed the lawsuit, noting that the claims were barred by the “public disclosure doctrine.” Larry Platt, a partner at the law firm of K&L Gates, said...

May 21, 2015 - IMFnews

Short Takes: Finally, Lawsky Tells Us When He’s Leaving / Meet the New NYDFS Boss, Same as the Old Boss? / Erbey Still Loves Ocwen, At Least Its Stock / Shelby Bill Passes, but... / Impac’s Non-QM Volumes Meager But Growing

Who might replace Lawsky? How about: Rohit Chopra, assistant director and student loan ombudsman for another agency that’s highly popular with mortgage executives: the CFPB.

May 21, 2015 - IMFnews

Oh, and Nationstar’s EVP of Human Resources is Retiring Too

A company spokesman confirmed the departure to IMFnews, noting that O’Brien is leaving after a 40-plus career.

May 21, 2015 - IMFnews

Final FHFA Servicer-Eligibility Rules Will Impact Smaller Shops More

According to analyst Paul Miller of FBR Capital Markets, the standards are meant to “impact small, nonpublic, nondepository institutions that have operated on the periphery of the sector.”

May 21, 2015 - IMFnews

Analysts See Stronger Mortgage Market in 2015, but Not Much Expansion in the Credit Box

“U.S. Bank was asked why it wasn’t expanding in the mortgage business,” Gabriel said during a panel discussion. “Their answer was: ‘Did you see what happened to Bank of America?’”

May 20, 2015 - IMFnews

Short Takes: Final Capital Standards from the FHFA Arrive / Nationstar Not Worrying / Leveraging Employees (Overseas Too) / Loan Officer Demand Red Hot? / Branches Out

Among those nonbanks not losing too much sleep over the FHFA proposal is Nationstar Mortgage.

May 20, 2015 - IMFnews

FHFA IG Worries About Nonbank Risk (Again), Cyber Attacks, More

In response to its anxiety, the Inspector General plans a series of audits that will study the risks posed by an increasing volume of nonbank loan sales.

May 20, 2015 - IMFnews

Dave Hisey Out as EVP of Nationstar Mortgage

Investors have been unhappy with Nationstar’s stock performance the past year and want a clearer picture of where the firm is headed.

May 19, 2015 - IMFnews

Short Takes: Nationstar to Launch Xome / Fortress Controls 66 Percent of NSM / Hedge Funds Invest in Private Money Lenders / FGMC Posts Nice Origination Gain / Foreclosure Law Firm Goes Bust

First Guaranty Mortgage Corp., Frederick, MD, originated $940 million of home mortgages in the first quarter, a 48 percent jump from the same period a year earlier.

May 19, 2015 - IMFnews

Morgan Stanley Cuts Stake in Ocwen as Shorts Increase

According to the website, almost 30.2 million shares of Ocwen are presently being shorted by speculators or 46.48 percent of the float...

May 19, 2015 - IMFnews

MountainView, Phoenix Capital Out with $1B-Plus MSR Deals

The seller of the MSRs was identified as a “subsidiary of a publicly traded company established in 1995.”

May 19, 2015 - IMFnews

Wells, Ocwen, Others Agree to Register and Maintain Vacant Properties in New York

Under existing New York law, mortgage companies aren’t required to maintain vacant properties until they receive a judgment of foreclosure...

May 18, 2015 - Inside the CFPB

CFPB Sues Nationwide Biweekly, Alleging Promises of False Savings

The CFPB sued Ohio-based Nationwide Biweekly Administration, Loan Payment Administration, and their owner, Daniel Lipsky, in federal district court last week, accusing them of misrepresenting the interest savings consumers will achieve through a biweekly mortgage payment program called the “Interest Minimizer” and misleading consumers about the cost of the program. Under the program, consumers who enroll send Nationwide half their monthly mortgage payment every two weeks, effectively making one additional monthly payment per year. According to the bureau, Nationwide charges consumers a setup fee of up to $995 to enroll in the program and charges consumers between $84 and $101 in payment processing fees each year they remain enrolled. According to the bureau’s complaint, the defendants made misrepresentations about the ...

May 18, 2015 - IMFnews

Short Takes: How High Can Ellie Mae’s Stock Go? / And the Flipping Continues / Lending to Flippers, a Profitable Business / GOP Says No to HUD Again / A Virginia M&A Deal

Several hard money lenders are involved in financing flippers, charging interest rates that are several percentage points above the going Fannie Mae/Freddie Mac rate.

May 18, 2015 - IMFnews

As Rates Rise, Residential Servicing Rights Increase in Value

Upwards of $500 billion of mortgage servicing rights could change hands this year. But maybe that estimate is too low...

May 18, 2015 - IMFnews

Ocwen Works to Address Operational Uncertainty By Adjusting Financing Agreements

Among other actions, Ocwen entered into an agreement in April to receive up to $125.0 million of backup financing for new loan originations...

May 18, 2015 - IMFnews

SEC Opens Inquiry on Use of Collection Agents at Ocwen and Other Firms

Existence of the probe was mentioned in the same paragraph about the NY SEC investigating Ocwen’s business dealings with affiliate companies such as Altisource...

May 18, 2015 - IMFnews

Thanks to HLSS Deal, New Residential Controls 34 Percent of Non-Agency ‘Clean Up’ Calls

“This should be terrific for our company,” said Michael Nierenberg, New Residential’s president and CEO, during a recent conference call with investors. “We expect sustainable earnings as a result of our long-term deal pipeline.”

May 18, 2015 - IMFnews

Performance of a Shrinking Balance of Subprime Loans on the Rise. Yes, That’s Right

According to exclusive figures compiled by Inside Nonconforming Markets, roughly $320.0 billion in subprime mortgages were outstanding at March 31, 2015.

May 15, 2015 - Inside FHA/VA Lending

Borrowers Suffer in the Long Run as Servicers Try to Avoid FHA Penalties

Mortgage originators are foregoing lending to borrowers who are more likely to become delinquent to avoid strict and unrealistic FHA timelines and cost limits, according to an Urban Institute study. Results of the study, which was issued in December, were again highlighted during a recent Housing Finance Policy Center seminar on servicing at the Urban Institute in Washington, DC. Citing the study she wrote, Laurie Goodman, director of the HFPC, said regulatory uncertainty and a broken servicer-compensation model were partly responsible for tight credit. The high cost of servicing non-performing mortgages and regulatory uncertainty regarding the treatment of delinquent borrowers have made lenders apprehensive about making loans that have even a slight chance of defaulting, she said. Long foreclosure delays in judicial states, burdensome foreclosure guidelines and apparently ...

May 15, 2015 - Inside FHA/VA Lending

HUD System Failed to Identify Ineligible FHA-HAMP Partial Claims

An internal audit of the FHA/Home Affordable Modification Program’s partial-claim option uncovered flaws that cost taxpayers millions of dollars in ineligible claims. According to a recent report by the Department of Housing and Urban Development’s Office of the Inspector General, HUD’s claim-payment controls were inadequate. As a result, the agency paid more than $22 million in unsupported claims and $103,925 in ineligible claims, the report concluded. Auditors said HUD did not design and implement strong safeguards to detect and prevent improper claims. Because of the flaws, the system allowed payment of more than one claim with a modification or FHA-HAMP option in a 24-month period, the report said. In addition, auditors found duplicate claims, partial claims in excess of 30 percent of the unpaid principal balance at initial default, and non-HAMP partial claims after HUD ...

May 15, 2015 - Inside FHA/VA Lending

RHS Final Rule for Certified Loan Application Packagers, Brokers

The Department of Agriculture’s Rural Housing Service has issued a final rule creating a certified loan-application packaging process for the agency single-family loan guaranteed housing program. Published in the April 29 Federal Register, the rule also establishes standards for packagers of loan applications, who are independent from RHS but play a key role in providing Section 502 rural home loan programs to potential homeowners. The final rule will take effect on July 28, 2015. Specifically, the rule addresses the weaknesses in RHS’ loan-application process and integrates the lessons learned from a loan-packaging pilot launched in 2010. The packager gathers and submits the information needed for RHS to determine whether a loan applicant is eligible for ...

May 15, 2015 - Inside FHA/VA Lending

Mortgages Rank High Among Top Servicemember, Vet Complaints

Making mortgage payments is the most common type of mortgage complaint active servicemembers, veterans or their dependents report to the Consumer Financial Protection Bureau. A recent CFPB report on the top complaints received from military members and their families show that 24 percent were mortgage-related, second to debt collection, which accounted for the highest percentage of complaints received, 39 percent. An estimated 53 percent of servicemember complaints involved mortgage servicing related to loan modifications, collections and foreclosures. The report did not identify any specific loan, although it covered both conventional and government-backed mortgages. Complaints against servicers were mostly about failure to remove or amend derogatory credit reports accrued by servicemembers during the trial period, even though the servicemembers have successfully ...

May 15, 2015 - Inside FHA/VA Lending

FHA Delinquency Rate Drops in 1Q, VA Delinquencies, Foreclosures Up

The FHA overall delinquency rate for single-family mortgages fell by 63 basis points to 9.10 percent on a seasonally adjusted basis in the first quarter of 2015 from the previous quarter, while VA loans recorded the only increase across all loan types over the same period, according to the Mortgage Bankers Association. Overall, mortgage delinquencies and foreclosures continued to fall in the first quarter and are now at their lowest levels since 2007, according to the MBA’s quarterly delinquency-rate survey. On a seasonally adjusted basis, the overall delinquency rate fell 14 bps to 5.54 percent from the fourth quarter of 2014, and 57 bps from one year ago, the MBA said. The serious delinquency rate – the share of mortgages that are 90 days or more past due or in foreclosure – likewise fell 28 basis points to 4.24 percent from the previous quarter and down ...

May 15, 2015 - Inside FHA/VA Lending

Premium Reduction Helped Fuel 1Q Jump in FHA Loan Production

Price reduction and improving economic factors helped push FHA volume up in the first quarter of 2015, according to an Inside FHA/VA Lending analysis of agency data. Production of forward single-family mortgages insured by FHA increased by 12.3 percent in the first quarter to $39.5 billion from $35.2 billion in the prior quarter, powered by a sharp uptick in refinances. FHA’s total refi business jumped from $2.29 billion in endorsements in February, a month of record snowstorms in the Northeast, to $8.15 billion in March. Total FHA forward-mortgage business rose by 83.8 percent from February, data showed. FHA streamline refis rose a whopping 144.1 percent quarter-over-quarter while conventional-to-FHA refis jumped 29.2 percent over the same period. Falling purchase loan volume, which was the reason for the overall decline in FHA originations last year, spilled over into ... [2 charts]

May 15, 2015 - IMFnews

What We’re Hearing: What’s Next for Nationstar, Walter, Ocwen? / A Broken High-Touch Model? / Oh No: Ocwen Takes the Corporate Jet Away! / Texas Bank Warehouses Impac / FHFA Does Not Want the FHLBs to be an Issuer Through the CSP / More TRID Anxiety

More trouble for Ocwen: the corporate jet has been yanked!

May 15, 2015 - Inside Nonconforming Markets

No ‘Going Concern’ Qualification for Ocwen

Ocwen Financial filed its annual report for 2014 this week and noted that its auditors decided against requiring a “going concern” qualification for the nonbank. “We believe the filing of our annual report, without a qualification as to our ability to operate as a going concern, is additional evidence that our strategy to strengthen our compliance management system, strengthen the service we provide to our customers and improve our financial stability is working and that confidence ...

May 15, 2015 - Inside Nonconforming Markets

Subprime Performance Continues to Improve

Performance of subprime mortgages continues to improve as the volume of loans outstanding slowly declines. Some $320.0 billion in subprime mortgages were outstanding as of the end of the first quarter of 2015, according to estimates by Inside Nonconforming Markets. Volume was down 4.2 percent from the previous quarter and 16.0 percent from the first quarter of 2014. The total past-due rate for subprime mortgages fell to 17.60 percent ... [Includes one data chart]

May 15, 2015 - IMFnews

Nationstar President & COO Harold Lewis Departs Nonbank for Retirement; No Details Available

Jay Bray, Nationstar’s current CEO, will assume the role of president effective June 1.

May 15, 2015 - Inside MBS & ABS

CFPB, Citing Parallels with Mortgage Servicing, Begins Probe of Student Loan Servicing Practices

The CFPB this week launched a public inquiry into student loan servicing practices that create repayment challenges, hurdles for distressed borrowers and economic incentives that may affect the quality of service. “As a growing share of student loan borrowers reach out to their servicers for help, the problems they encounter bear an uncanny resemblance to the situation where struggling homeowners reached out to their mortgage servicers before, during and after the financial crisis,” CFPB Director Richard Cordray said during a field hearing in Milwaukee on Thursday. “Having seen the improper and unnecessary foreclosures experienced by many homeowners, the CFPB is concerned that inadequate servicing is also contributing to America’s growing student loan default problem.” Currently, about 8 million Americans are...

May 14, 2015 - IMFnews

FHFA Ticks Off Capitol Hill by Proposing Higher Pay for GSE Chiefs

Watt said GSE pay should be brought more in line with comparable private sector jobs, but no higher than what CEOs in the 25th percentile of the market make, which is roughly $7.26 million a year.

May 14, 2015 - IMFnews

Short Takes: President of Large Nonbank Out the Door? / Ocwen Selling Nonperforming MSRs / Clean is Good / More Ginnie Issuance by the FHLBs / A New Tool From Economists at the FHFA / WJB Hires New CIO

In a recent 10-K filing Ocwen disclosed that on April 30, 2015 it announced agreements with the GSEs to sell portfolios of non-performing loan servicing rights.

May 14, 2015 - Inside Mortgage Finance

Ocwen Making Headway on GSE Servicing Sales, But It’s Unclear Why the Firm Is Holding Onto its Ginnie Rights

Since late February, Ocwen Financial has struck four different deals to sell $89.4 billion in Fannie Mae/Freddie Mac servicing rights. Although buyer interest in the high-quality receivables was strong, getting those transactions past the Federal Housing Finance Agency has been a different matter. Industry advisors note that in general Fannie and Freddie promise their seller/servicers they will approve MSR transfers within 60 days unless there’s a problem. Last summer, the approval time was increased from 30 days, a change that did not receive much publicity. The FHFA, on the other hand, offers...

May 14, 2015 - Inside Mortgage Finance

CFPB May Review Lender-Paid MI as Pricing Gets More Competitive. But Who’s at Risk Here: MIs or Lenders?

It’s no secret that pricing on lender-paid mortgage insurance policies has come down over the past several months and now it appears the Consumer Financial Protection Bureau may take a look at what’s going on behind the curtain. According to industry officials who claim to have knowledge of the situation, the powerful consumer regulator may focus on whether there is some kind of quid pro quo going on between lenders and mortgage insurers. In particular, the agency may look...

May 14, 2015 - IMFnews

MBS Investors Working to Remove Ocwen as Servicer from More Non-Agency Deals

The three latest deals have a combined UPB of $820 million. Successful votes to terminate servicers of non-agency MBS are uncommon...

May 14, 2015 - IMFnews

JPM Makes it Official: Bank Will Buy $45 Billion in Fannie MSRs from Ocwen

Ocwen announced the sale of the $45 billion early this spring, but never identified the buyer.

May 13, 2015 - IMFnews

Preparedness is Crucial to Surviving a CFPB Audit

A CFPB lending exam can take up to six months to complete and can be quite expensive over time...

May 13, 2015 - IMFnews

Shelby's Bill Would Alter the Common Securitization Platform

To date, CSS has yet to perform a beta test and has a “black budget” whose details are only known to Fannie, Freddie and their regulator.

May 13, 2015 - IMFnews

A Frothy Mortgage Employment Market: Signing Bonuses for Underwriters and Processors?

Financial consultant Paul Hindman, however, is concerned about such bonuses...

May 12, 2015 - IMFnews

Short Takes: Former FHA Chief Stands With Quicken / No FCA for Stevens / Cherry Hill Posts Small Loss / Nomura Loses / Biweekly Provider in CFPB Crosshairs / Milestone for DocMagic

Stevens also said that while he was FHA commissioner he chose not to go after lenders for violating the False Claims Act because he said such actions would have opened a “Pandora’s Box.”

May 12, 2015 - IMFnews

IMA Selling $202 Million Fannie Mae MSR Portfolio

In late March, IMA noted that it was working on several deals totaling just over $20 billion, but all were being negotiated privately...

May 12, 2015 - IMFnews

Five Oaks Takes Loss in 1Q from Jumbo MBS Activities, Interest Rate Hedges

Five Oaks' management noted that the REIT has better control of its jumbo MBS exposure since the company issued its own security in April.

May 12, 2015 - IMFnews

Cut in FHA Premiums Causes Ocwen to Take a Ginnie Mae MSR Charge

Last fall, Ocwen tried to sell its Ginnie Mae servicing rights, but recently disclosed that it will keep the receivables instead...


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