Mortgage Servicers

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

July 23, 2014 - IMFnews

Short Takes: More Gripes About the FHFA IG Report on Nonbanks / Will the MI Biz Shift back to FHA? / GSE REO Contractor Accused of Discrimination / Ellie Mae Signs Fat Lease / A Rise in Mortgage Applications but Can it Last?

One critic of the report on nonbank risk had this to say: “It’s just ridiculous what they [the IG] get away with. There’s risk in every business. Don’t they get it?”


July 23, 2014 - IMFnews

CFPB Proposes Adding Unvetted Customer Narratives to Complaint Database

Mortgage industry representatives are quite leery about the CFPB proposal. The comment period ends August 22.


July 23, 2014 - IMFnews

60-Year Old ‘Northeast’ Mortgage Company Hits the Auction Block

“There’s lots of talk of companies being for sale right now,” said Paul Hindman, managing director of Management Advisors Executive Search, “but not too much talk of deals closing.”


July 22, 2014 - IMFnews

Short Takes: Will CIT be a Player in Mortgages? / Another New CEO for Union Mortgage / Credit Suisse Buying NPLs from Astoria / JPM Gets Some Credit / IMA in Market with $1B of MSRs

Union Mortgage has been losing some of its top executives over the past year. A few months back, its president and CEO Robert Eastep departed for Stonegate Mortgage…


July 22, 2014 - IMFnews

Prospect Mortgage Still Scouring for Lenders to Buy?

“Prospect has a target list and they have an audience,” said one advisor. “But so far, in the mortgage M&A market there has been a lot of talk – with not too many deals getting done.”


July 22, 2014 - IMFnews

Freedom Mortgage Posts Record Originations in June

By comparison, in the first quarter of 2014, Freedom averaged $1.28 billion of originations per month.


July 22, 2014 - IMFnews

Most Mortgage Complaints Filed with CFPB Decline – Except for Servicing

Criticisms about servicing seem to be stubbornly resistant to much improvement, however, hovering in the 3,000 to 4,000 range for the last six quarters.


July 21, 2014 - Inside the CFPB

Mortgage Complaints to CFPB Plunge Across the Board

A new analysis by Inside the CFPB found that consumer complaints to the bureau about their mortgages fell sharply in the second quarter, which likely reflects a continued stabilization in the housing and mortgage markets. In 15 out of 16 metrics tracked, customer gripes declined by double digits, with the remaining metric showing only a modest rise year-over-year. And in terms of the sole metric that showed a slight rise – a 3.6 percent increase in criticisms about mortgage servicing year over year – even there the data show a double-digit improvement (20.6 percent) from the first quarter of 2014 to the second. However, upon closer examination, the data also reveal that the double-digit rates of decline in consumer complaints slowed during ...


July 21, 2014 - Inside the CFPB

Bureau Files Lawsuit Against Debt-Collection Firm, Principals

The CFPB filed a lawsuit in a federal district court last week against Frederick J. Hanna & Associates, based in Marietta, GA, and its three principal partners – Frederick J. Hanna, Joseph Cooling, and Robert Winter – accusing them of operating a debt-collection lawsuit mill that used illegal tactics to intimidate consumers into paying debts they may not owe. “The CFPB alleges that the firm operates like a factory, producing hundreds of thousands of debt- collection lawsuits against consumers on behalf of its clients, which mainly include banks, debt buyers and major credit card issuers,” the bureau said. Between 2009 and 2013, the firm filed more than 350,000 debt-collection lawsuits in Georgia alone, according to the CFPB. The bureau further alleged the ...


July 18, 2014 - Inside FHA Lending

Ginnie Mae Servicing Remains Flat in 2Q14

Ginnie Mae servicing remained flat in the second quarter of 2014, continuing a trend that began in the third quarter of last year as FHA refinancing fell and purchase activity slowed, according to Inside FHA Lending’s analysis of Ginnie Mae data. Servicing volume rose by only 0.7 percent from the first quarter, slightly lower from the 0.9 percent increase reported by Ginnie Mae servicers for the first three months of 2014. On the other hand, volume was up modestly by 5.9 percent year-over-year, data showed. Ginnie Mae servicers ended the second quarter with a total of $1.46 trillion in unpaid principal balance, up from $1.45 trillion in the prior quarter. Four out of the top five Ginnie Mae servicers were banks. Wells Fargo closed out the second quarter with $425.9 billion in servicing volume, a 0.2 percent decrease from the previous quarter but up 2.1 percent from a year ago. Its 29.2 percent market share put it ... [1 chart]


July 18, 2014 - Inside FHA Lending

VA Clarifies Impact of Same-Sex Marriage Policy

Same-sex couples are entitled to veteran benefits, including home loan guaranty, if their marriage is recognized by the state where they live or where they lived when they filed a claim for benefits – and not where the marriage took place.The VA made the clarification in the wake of guidance the agency issued regarding the benefits and services same-sex married couples are entitled to under current laws and regulation. On June 26, 2013, the U.S. Supreme Court, in United States v. Windsor, struck down Section 3 of the Defense of Marriage Act (DOMA), which governs the definitions of “marriage” and “spouse” for all federal agencies, because it was unconstitutional. The court held that the provision deprives a person of the right to equal liberty, which is protected by the due process clause of the Fifth Amendment. Prior to the SCOTUS opinion, DOMA defined “marriage” as a ...


July 18, 2014 - Inside FHA Lending

Infractions that Could Trigger MRB Enforcement

One deficiency commonly noted in cases heard by the Department of Housing and Urban Development’s Mortgagee Review Board is failure by FHA lenders and servicers to implement and maintain a quality control (QC) plan. FHA’s focus on quality control has increased over the last couple of years as the agency strives to correct underwriting flaws that have contributed to the massive losses and severe depletion of the Mutual Mortgage Insurance Fund. After years of guiding and helping clients comply and cope with FHA regulations, requirements and enforcement actions, the Collingwood Group reports that a common QC-related mistake among FHA lenders is failure to document steps taken to correct deficiencies – or to take any corrective action at all. Tied to this issue is ...


July 18, 2014 - Inside FHA Lending

Borrower OK Required to Voluntarily End Federal MI

New FHA guidance regarding voluntary termination of FHA mortgage insurance does not affect separate guidance requiring borrowers to continue payment of their annual insurance premium regardless of the loan’s amortization terms. The FHA made the clarification in relation to Mortgagee Letter 2014-13, which requires written consents by the lender and the borrower in all voluntary terminations of FHA mortgage insurance. The requirement becomes effective on Oct. 1st this year. Specifically, the guidance requires FHA lenders to document that they have obtained the borrower’s informed consent to terminate FHA insurance on the mortgage. The change ensures that the lender would incur no liability and that the borrower understands the terms of the voluntary termination. Under current rules, the FHA may terminate mortgage insurance at the request of the borrower and the lender. The lender may cancel the insurance endorsement upon notification by the FHA commissioner that the insurance contract is terminated.


July 18, 2014 - Inside FHA Lending

FHA to Lenders: Try PFS First Before DIL Option

If an FHA borrower runs out of options for loss mitigation and home retention, a lender must first consider a pre-foreclosure or short sale, with deed-in-lieu (DIL) of foreclosure as a second option, according to new FHA guidance. Mortgagee Letter 2014-5 states that the lender must first determine whether the borrower facing default or at risk of default qualifies for a pre-foreclosure sale (PFS). The FHA allows pre-foreclosure sales to be processed as either a “standard PFS” or a “streamline PFS.” The former is available only to owner-occupants while the latter is for both owner- and non-owner-occupied single-family properties. In determining standard PFS eligibility, the lender must use a “deficit income test” to determine whether the borrower is experiencing hardship and is able to sustain his or her mortgage. A DIT resulting in a negative amount would likely qualify the borrower for a ...


July 18, 2014 - Inside FHA Lending

JPMorgan Chief Seeks FHA Safe Harbor for Bank

JPMorgan Chase chief executive Jaime Dimon this week warned that the investment bank may rethink its FHA business without some type of safe harbor to shield it from potential future liabilities arising from the Financial Institutions Reform, Recovery and Enforcement Act and the False Claims Act. In February this year, JPMorgan agreed to pay $614 million to the federal government to settle allegations that it falsely certified poorly underwritten loans for FHA endorsement, causing massive losses to taxpayers in paid claims. Dimon lashed out at the government during a telephone briefing on the company’s second-quarter 2014 earnings report. He said JPMorgan lost a tremendous amount of money over what the government claimed was fraud but was in fact a “commercial dispute” between FHA and the bank. “We collected $600 million in insurance, the [government] disputed $200 million [alleging] it was fraud ...


July 18, 2014 - Inside FHA Lending

Endorsements Up for 620-679 Credit Scores

Mortgages with 620-679 credit scores accounted for more than half of FHA’s mortgage insurance business in the first quarter of 2014, up from 42.0 percent a year ago, according to the Department of Housing and Urban Development’s latest quarterly report to Congress on the state of the FHA Mutual Mortgage Insurance Fund. Data showed FHA-insured mortgages in the 620-679 credit score range, a band typically identified with borrowers with slightly tainted credit, comprised 51.1 percent of new endorsements in the first quarter. This was up from 50.1 percent in the fourth quarter of 2013. FHA endorsements in the 620-plus category started trending upward in the first quarter of 2011, while endorsements in the 720-850 credit score range began a slow decline during the same period. The distribution of borrower credit scores continued the migration seen in previous quarters, though at a ...


July 18, 2014 - Inside Nonconforming Markets

Regulators Get Serious with HAMP Enforcement

SunTrust Banks settled criminal allegations this month relating to activity under the Home Affordable Modification Program. The $320 million settlement marked the first time a HAMP servicer paid a monetary penalty under the program. To this point, penalties for violations of HAMP guidelines have been relatively lenient, with the harshest maneuver being a temporary stop in incentive payments from the program. However, an investigation led by ...


July 18, 2014 - IMFnews

What We’re Hearing: Is the FHFA IG All Wet Regarding Nonbank Risk? / Hurting the GSEs’ Reputations? / Time to Probe GSE Specialty Servicers? / Prospect Mortgage Continues to Hunt for Acquisitions / Raj Date Doesn’t Recognize ‘His’ CFPB

Industry reaction to the FHFA IG report on nonbank and small lender risk was swift. Maybe Fannie Mae is better off having Countrywide as its biggest customer again?


July 18, 2014 - IMFnews

An Increase in Originations Could Mean More Mortgage Jobs

Lenders are being careful about costs, but rising loan volumes could force some firms to hire, at least a little bit.


July 18, 2014 - Inside MBS & ABS

Single, Numerical Scale Suggested as the Fix For Structured Finance Transaction Ratings

As the Securities and Exchange Commission continues to consider how to reform the rating process for structured finance transactions, including non-agency MBS, industry analysts affiliated with the Brookings Institution suggested that the fix doesn’t require altering the issuer-pay model that has been in place for more than 40 years. Instead, the SEC should help establish transparent, numerical benchmarks, according to two industry participants, shifting away from the current system of letter-based ratings that are also used for corporate debt and sovereign debt. Ann Rutledge, a founding principal at R&R Consulting, a credit rating service, and Robert Litan, a nonresident senior fellow at The Brookings Institution, detailed their proposal in an economic study recently published by Brookings. “Securities that are rated only in an ordinal fashion – in order of likelihood of default – can be...


July 18, 2014 - IMFnews

Put Ginnie Mae in Charge of All Government MBS?

Over five years, Fannie and Freddie would be wound down, but would be allowed to be sold and recapitalized as private entities with different business plans.


July 18, 2014 - IMFnews

‘Flow’ Servicing Deals Rule the Roost, for Now

Did to raise cash in a tough origination market? Sell your MSRs.


July 17, 2014 - IMFnews

Short Takes: USB Grows Production by 27 Percent / New Applications Not So Hot / More Big MSR Deals on the Way? / Housing Starts Disappoint / Foreclosures Continue to Improve

Luckily, JPM’s Jamie Dimon doesn’t care about such silly thing as mortgage rankings. (And he's not a big fan of FHA either.)


July 17, 2014 - Inside Mortgage Finance

Miami Loses Discrimination Fight with Banks, But Some States Find Ways to Force Banks to Pay Foreclosure Costs

While legal attempts by city governments to force large banks to pay for the high cost of foreclosure have failed, efforts to resolve the problem in state legislatures appear to be making headway. The City of Miami suffered consecutive defeats in three of the four lawsuits it filed against major banks after a federal district court judge dismissed all three because of the city’s lack of standing to bring suit under the federal Fair Housing Act. U.S. District Court Judge William Dimitrouleas dismissed...


July 17, 2014 - Inside Mortgage Finance

Most of the Megabanks Saw Mortgage Profits Increase Firmly in 2Q; A Barometer for the Rest of the Industry?

The nation’s megabanks reported fairly strong mortgage earnings during the second quarter thanks to a jump in new originations, robust servicing revenue and expense cuts. If the results reported by Wells Fargo, JPMorgan Chase, Bank of America and Citigroup are any indication, the industry may be rebounding from a rough stretch in late 2013 and early 2014. But the first quarter of this year was so bad – and originations so weak – that lenders had no place to go but up. Larry Charbonneau, a warehouse lending analyst, said...


July 16, 2014 - IMFnews

Short Takes: Strong Earnings for MGIC, But a Warning Too / Non-QM to the Rescue? / Ocwen in Stock Deal with Ross / Stonegate Mortgage Gets a ‘Neutral’ Rating / Canada in for a Big Housing Correction?

MGIC is operating with each GSE as an eligible insurer under a remediation plan. In trading Wednesday, its share price was down 9 percent…


July 16, 2014 - IMFnews

Wells Fargo Securities Downgrades Nationstar, Walter; Says Stocks May Plunge

Analysts at Wells Fargo Securities believe there could be a huge downside to owning shares of Nationstar and Walter Investment.


July 16, 2014 - IMFnews

Federal Reserve Plan Means More Due Diligence on Third-Party Servicers

Morgan Stanley’s regulatory action plan supplements the firm’s global risk-management program for third-party servicers, which is currently in place.


July 16, 2014 - IMFnews

Ocwen Partners with Consumer Advocates to Track Issues Borrowers are Having with the Servicer

Ocwen's consumer council will consider issues such as principal reduction loan modifications, reducing urban blight, helping minorities and improving language access to borrowers with limited English proficiency.


July 15, 2014 - IMFnews

Orange Capital Slashes Stake in PHH

The holding company for the nation’s sixth largest lender recently sold its fleet division, and is in the throes of restructuring its mortgage unit, which is now its main line of business.


July 14, 2014 - IMFnews

Another Megabank (Citigroup) Reports Much Stronger 2Q Originations

Citigroup also marked down the asset value of its residential mortgage servicing portfolio to $2.282 billion, a 12 percent decline on a sequential basis.


July 11, 2014 - Inside Mortgage Trends

Walter Moves Toward ‘Capital-Light’ Model

Walter Investment Management took steps last week to transition to a business model that requires less capital by funding Walter Capital Opportunity and completing an excess servicing spread sale with WCO. WCO is a real estate investment trust that Walter formed in November to hold mortgage servicing rights. Last week, WCO acquired 70 percent of the excess servicing spread from a pool of loans serviced by Green Tree Servicing ...


July 11, 2014 - Inside Mortgage Trends

FHFA Weighs Capital for Nonbank Servicers

By now, the word is out: the Federal Housing Finance Agency is exploring codifying capital minimums for nonbank servicers as a way to help Fannie Mae and Freddie Mac better manage counterparty risk. Industry officials tracking the topic told Inside Mortgage Trends they don’t believe the FHFA is necessarily worried about the capital positions of the big three nonbanks: Nationstar Mortgage, Ocwen Financial, and Walter Investment Management ...


July 11, 2014 - Inside The GSEs

FHFA-OIG Raises Red Flags About GSE Nonbank Servicers

A new audit issued last week by the Federal Housing Finance Agency’s official watchdog revealed that an unnamed nonbank special servicer raised red flags for Fannie Mae, Freddie Mac and their regulator. The report by the FHFA’s Office of Inspector General prompted the FHFA to issue guidance on the counterparty risk posed by nonbank servicers by year’s end. The OIG audit said the Finance Agency and the two GSEs “have responded well to specific problems at nonbank special servicers.”


July 11, 2014 - IMFnews

What We’re Hearing: Is Our Mortgage Origination Estimate Crazy? / Good News from At Least One Warehouse Lender / Bullish on Non-QM Lending? / The FHFA MI Proposal is Out and the World Hasn’t Ended, Yet / As for Radian… / Frank Raines’ New Job

So, you doubt our 2Q origination estimate? Here’s what an executive from a top-five warehouse bank told us: “We’re experiencing a significant pick up in outstandings."


July 11, 2014 - Inside MBS & ABS

Fed Issues Action Plans for Goldman Sachs, Morgan Stanley to Improve Oversight of Third-Party Servicers

The Federal Reserve has released action plans for Goldman Sachs and Morgan Stanley to correct deficiencies in the firms’ risk management procedures for third-party mortgage servicers. The plans were a requirement under enforcement actions issued by the Fed and the Office of the Comptroller of the Currency between April 2011 and April 2012 against 16 mortgage servicers, including Goldman Sachs and Morgan Stanley. The servicers came under scrutiny for deficient servicing practices and foreclosure procedures, and later settled with the government. Morgan Stanley’s regulatory action plan supplements...


July 11, 2014 - IMFnews

Residential Originations Spike 31 Percent at Wells Fargo, but Bank Marks down MSRs

However, compared to the same quarter a year ago, loan production at Wells took it on the chin, falling a bloodcurdling 59 percent.


July 10, 2014 - IMFnews

Short Takes: More Room to Run for Mortgage Insurance Stocks? / Nationstar Cuts New Employment Deal with Its President / Is the Single-Family Investment Market Overheating? / FHFA Hoping on HARP

We know of some veteran mortgage bankers who believe the “fix and flip” housing market is getting overheated. One lender told us he fears a severe correction could hit California…


July 10, 2014 - Inside Mortgage Finance

Mismatched Default/Claims Data in CAIVRS, FHA System Result in Ineligible Borrowers Obtaining New FHA Loans

The Inspector General of the Department of Housing and Urban Development called on the FHA to clean up and update its shared database of federal debtors in default, including FHA borrowers, to ensure the information it holds matches data in the FHA’s default and claims systems. An audit by HUD’s IG found that the Credit Alert Verification Reporting System (CAIVRS), which lenders use to screen delinquent federal debtors from obtaining any more government-backed loans, did not contain default, foreclosure and claims information for more than 260,000 borrowers. As a result, ineligible borrowers were able to obtain new federal loans and loan guarantees. The IG estimates...


July 10, 2014 - Inside Mortgage Finance

Although the MSR Market for ‘Legacy’ Product Remains Weak, ‘Flow’ Deals Rule the Roost

Thanks to lousy origination profits posted over the past six months, mortgage bankers increasingly are boosting earnings through servicing-released arrangements, causing a mini-boom in flow transactions. “You might say we’re back to a normal operating environment where originations are cash-flow negative,” which is forcing lenders to book profits through MSR sales, said Jeff Levine, managing director of Houlihan Lokey, an investment banking firm. But Levine is...


July 10, 2014 - IMFnews

House Democrats File ‘Middle Ground’ GSE Reform Legislation

The Democratic proposal calls for private mortgage capital to backstop the first 5 percent of conventional-mortgage securitizations with the remaining 95 percent of risk shared “on a pari passu basis.”


July 9, 2014 - IMFnews

Mortgage Banker with a ‘Substantial’ MSR Portfolio Unloading Some of its Holdings

Over the past six months, many nonbanks have moved to sell MSRs as a way to remain cash flow positive in a tough origination market.


July 8, 2014 - IMFnews

Short Takes: What it Takes to Survive the Mortgage Downturn: Scale / Whole Loan Sales or MBS, That is the Question / HomeStreet Dominates Redwood Deal / Ellie Mae Will Need a New General Counsel / Here Comes the Earnings Flood

Will loan production in the second half surprise the naysayers? Will non-QM lending take off? Stay tuned...


July 8, 2014 - IMFnews

Mortgage Brokers Add Jobs While Lender/Servicers Cut

With just $1 trillion in originations expected this year, lenders and servicers are trimming their payrolls accordingly.


July 8, 2014 - IMFnews

Fed: Homeowners Have Received $3.1 Billion So Far as Part of National Foreclosure Settlement

The payment amounts to the borrowers range from several hundred dollars to $125,000, according to the Independent Foreclosure Review audit.


July 8, 2014 - IMFnews

PHH Will Invest $350 Million in Mortgage Unit, but Outsourcing and Layoffs Ahead

Will PHH sell its mortgage division this year? Don't bet on it. But it will spend millions on a company restructuring.


July 8, 2014 - IMFnews

Mortgage Complaints Filed with the CFPB Fell by Almost 19 Percent in 2Q

Bank of America is the mortgage complaint king with 38,098 official gripes filed with the Consumer Financial Protection Bureau.


July 7, 2014 - Inside the CFPB

Credit Unions Support Broader Exemptions from CFPB Rules

Credit union industry representatives want the CFPB to expand some exemptions in some of its recent rulemakings so their CU members could reach larger portions of their targeted markets. One of the recent amendments the bureau proposed to its mortgage rules issued in 2013 would provide an alternative definition of “small provider” applicable to Internal Revenue Code Section 501(c)(3) nonprofit entities that service loans for a fee and on behalf of other nonprofit entities within the same overall organization. This is the so-called “small servicer exemption.” Also for 501(c)(3) nonprofit entities, the proposed rule would exempt certain interest-free, contingent subordinate liens from the credit extension limit under the ability-to-repay rule. This is what’s known as the “small creditor exemption.” As ...


July 7, 2014 - IMFnews

Short Takes: Delinquencies Creep Into Shellpoint Deal / Freddie’s Latest Risk-Share Deal / Consumers Gaining Confidence on Housing but Fears Persist / GSE Group Up to 700 Members / Another Mortgage M&A Deal

As of May, only three of the loans were 30-days delinquent, with the other once-delinquent mortgages having returned to current status or paid off.


July 7, 2014 - IMFnews

Walter Sells Excess Servicing Strip for $75 Million

York Capital is backing Walter Capital Opportunity Corp., the buyer of the excess MSRs.


Poll

Home-equity lending is beginning to show new life. My company (pick one):

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Is already making home equity loans and hopes to increase the offerings.
Is in the market but don’t expect much growth.
Is not making second liens and has no plans to do so.

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