Mortgage Servicers

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

December 19, 2014 - Inside FHA Lending

Around the Industry

Proposed Data Collection for Evaluating Impact of Pre-Purchase Homeownership Counseling. The Department of Housing and Urban Development has asked the Office of Management and Budget to clear a proposal to collect information for a national study that would gauge the effectiveness of pre-purchase homeownership counseling. Rather than individual telephone interviews, the study plans to conduct focus groups and to collect data regarding the characteristics and performance of participants’ mortgage loans, even after the end of the study. The information collection will involve an estimated 6,000 borrower-participants, 1,800 co-borrowers, 64 counseling organizations and three FHA lenders. The study will be conducted in three cities at a cost of approximately $521,830. The proposal will be published in the ...

December 19, 2014 - Inside FHA Lending

MBA Boycotts FHA Panel Talk for Being too Biased

The Mortgage Bankers Association this week declined to participate in a panel discussion on FHA hosted by the American Enterprise Institute because the trade group did not believe the discussion would be balanced and though it would favor only a certain point of view. The topic was “FHA from 1934 to 1938: Lessons for Wealth Building,” with Ed Pinto, a resident fellow at AEI, and Dave Stevens, MBA president, as presenters. Stevens, however, decided to pull out of the event when he saw the format. In a letter to the AEI organizers, Stevens said he agreed to be a presenter thinking the debate “would be a balanced approach.” “When I first agreed to do this, I did not expect that the format would be 45 minutes of [Ed Pinto] and then no more than 12 minutes for me to respond,” he wrote. “That’s an extremely lopsided approach that did not appear to be ...

December 19, 2014 - Inside FHA Lending

USDA Implements New Definition of ‘Rural’ Area

The Department of Agriculture’s Rural Housing Service (RHS) has issued a final rule implementing a new statutory definition of “rural” or “rural area” that could mean increased origination of rural home loans with a USDA guarantee. The Agricultural Act of 2014, also known as the 2014 Farm Bill, mandated the change. Being a statutory requirement, no public comment was sought for the final rule. According to the statute, an area that has a population of more than 10,000 but not exceeding 35,000, and is rural in character and seriously lacks mortgage credit is a “rural area.” The new definition applies to areas deemed rural before Oct. 1, 1990, and later determined not to be rural after the 1990, 2000 or 2010 census and any area deemed rural anytime between Jan. 1, 2000, and Dec. 31, 2010. They will retain eligibility until the receipt of the ...

December 19, 2014 - Inside FHA Lending

OIG Recovers $300M from SunTrust Settlement

The Inspector General of the Department of Housing and Urban Development has announced a $300 million recovery from an earlier settlement between SunTrust Mortgage and the Department of Justice, Consumer Financial Protection Bureau, the HUD Office of the Inspector General, and 50 state attorneys general. The settlement resolved allegations of violations of FHA requirements in a joint complaint filed on June 14, 2014, by federal and state enforcement agencies. The suit against SunTrust alleged misconduct related to the origination and servicing of single-family residential mortgages. The problem loans were uncovered during a routine OIG review of targeted FHA-insured loans. According to the suit, as an FHA direct endorsement lender, SunTrust certified poorly underwritten loans for FHA insurance from January 2006 through March 2012, despite its knowledge of ...

December 19, 2014 - Inside FHA Lending

Congress Shoots Down HAWK, Rejects FHA Fee

Congress denied funding for an enhanced FHA housing counseling initiative for first-time homebuyers and rejected a request for authority to collect a new FHA fee to enhance quality-assurance reviews. President Obama this week signed the FY 2015 Consolidated and Further Continuing Appropriations Act, a comprehensive package of 11 funding bills for federal agencies. The bill does not include the provisions the FHA had sought to toughen enforcement and help lower costs for first-home purchases. The House passed the $1.1 trillion omnibus spending bill, H.R. 83, by a vote of 219-to-206 on Dec. 11, narrowly avoiding a government shutdown. The Senate approved the bill on Dec. 13. The bill allocates $47 million to the Department of Housing and Urban Development’s housing counseling program and $50 million for foreclosure mitigation counseling. It also provides $400 billion in ...

December 19, 2014 - Inside Nonconforming Markets

Major Servicers Improving, Save for Ocwen

Most major servicers participating in the Home Affordable Modification Program and subject to national mortgage servicing settlements are generally improving their performance, according to officials overseeing the programs. CitiMortgage will receive incentive payments from HAMP that were being withheld due to poor performance, the Treasury Department noted in a report released last week. Citi went from needing “substantial” improvement in HAMP ...

December 19, 2014 - Inside Nonconforming Markets

Cenlar Seen as a Strong Servicer of Jumbo MBS

A savings bank that focuses on subservicing has been the most active servicer of loans in jumbo mortgage-backed securities since 2013, according to Fitch Ratings. A number of rating services view the firm, Cenlar, as a strong servicer with good prospects for continued growth. Last week Fitch affirmed its RPS2 rating for Cenlar as a servicer of prime mortgages that demonstrates “high performance in overall servicing ability.” Fitch said that since 2013, Cenlar has added ...

December 19, 2014 - Inside Nonconforming Markets

Banks Increase Holdings of First Liens

Bank and thrift holdings of first-lien mortgages increased in the third quarter of 2014 compared with the third quarter of 2013, according to a new ranking and analysis by Inside Nonconforming Markets. Banks and thrifts held $1.76 trillion in first liens as of the end of the third quarter of 2014, up 0.4 percent compared with the same period last year. The growth was driven by jumbo mortgages. On a quarterly basis, portfolio runoff and loan sales slightly outpaced ... [Includes one data chart]

December 19, 2014 - Inside MBS & ABS

Most Consumer ABS Asset Classes to Hold Up Well In 2015, With Subprime Auto a Question Mark

Wall Street analysts are generally projecting a year of stability for most asset classes in the consumer ABS space for 2015, despite a few more losses and an anticipated increase in interest rates. The one exception might be subprime auto. Analysts at Standard & Poor’s Ratings Services cited a favorable overall environment characterized by a strengthening economy, healthy consumer credit fundamentals, and robust structural protections in ABS transactions. “We expect...

December 19, 2014 - Inside MBS & ABS

MBS Prices Hit Highs for the Year as Gas Plummets; Time to Get Out of the Market?

Defying the expectations of most industry analysts, investors have bid up the price of agency MBS over the past two weeks, pushing values into nosebleed territory. According to figures compiled by MBS Quoteline, the price of the Fannie Mae 3.50 percent bond recently reached 104.4. “This week and last week we saw new highs,” said Joe Farr, director of sales and marketing for the company. And that has made...

December 19, 2014 - IMFnews

Short Takes: Boom in MLO Licenses / FHA Delays Detailing Review Findings / Redwood and the GSEs / Positive Outlook for SLS

The increase in the number of mortgage loan originators with state licenses was attributed to increased access to warehouse credit and less exposure to regulation than big banks.

December 19, 2014 - IMFnews

Lawsky Faults Nonbank Servicer for Relying on Technology, Falling Behind Performance of Peers

Lawsky didn't name names, but the servicer he singled-out shares a number of characteristics with Ocwen Financial.

December 18, 2014 - Inside Mortgage Finance

Transfers of Ginnie Mae Servicing Rights Fell Sharply in FY 2014; A Lack of Mega Deals?

Ginnie Mae approved the transfer of $66.06 billion in mortgage servicing rights during fiscal year 2014, a 56.5 percent tumble from the prior year as “mega” MSR transactions hit the skids. In fiscal 2012, just $25.39 billion in Ginnie product changed hands, but the market heated up significantly with $152.22 billion transferred in 2013. As always, transfers can be...[Includes one data chart]

December 18, 2014 - Inside Mortgage Finance

Subservicing Volumes Stay Relatively Flat, But Big Drops for BofA, Nationstar, Ocwen

The nation’s subservicers, as a whole, reported a modest decline in their business volume during the third quarter, though some firms experienced large declines compared to a year ago, according to exclusive survey figures from Inside Mortgage Finance. The biggest year-over-year decline came at Bank of America, which had just $5 billion in subservicing contracts at Sept. 30, a 78.3 percent drop compared to the same period last year. BofA’s decline in the subservicing sector is...[Includes one data chart]

December 18, 2014 - IMFnews

Short Takes: Thanks to Ackman, a Santa Claus Rally in GSE Stocks / New Jumbo MBS from CS / Home Flippers Stop Flipping? / Opus Active / A Departure at Altisource

A year ago, in SEC filings, Pershing Square disclosed that it owned just under 10 percent of Fannie and Freddie common.

December 18, 2014 - IMFnews

More Turmoil at Specialty Servicer Wingspan? COO Scavone Departs

Scavone was hired by the company in January of 2014.

December 18, 2014 - IMFnews

JPM to Bundle Low-Doc IOs Originated by Merrill Lynch 8 Years Ago

The Merrill borrowers tend to have strong equity positions: the original average combined LTV on the collateral is 54.9 percent.

December 18, 2014 - IMFnews

Subservicing Volumes Stay Flat But Loan Care Shines

Loan Care Servicing, an affiliate of Black Knight Financial, subserviced $110.0 billion at Sept. 30, up 47.4 percent from a year ago.

December 17, 2014 - IMFnews

Short Takes: Okay, Is Mortgage Credit Tighter or Looser? / A Management Shakeup at a Texas Lender / Quick, Rehire All the People You Fired / Tax Extender Bill Passed / Ex-CFC LO Headed to ‘The Big House’

A mid-sized nonbank based in Texas saw two of its top officers resign last week, industry sources confirmed to IMFnews.

December 17, 2014 - IMFnews

Plunging Oil Could Fuel a Mortgage Hiring Boom for Refis, But…

Plunging oil prices have led to a sell-off in stocks and a flight to quality, namely U.S. Treasuries and agency-backed MBS.

December 17, 2014 - IMFnews

FHA MMIF Will Get $300MM From SunTrust Settlement

When settlements are first reported rarely does the money change hands right away.

December 17, 2014 - IMFnews

CBO: Private Capital Can Replace the GSEs but Not Much Savings for Uncle Sam

Advocates for GSE reform looking for savings in the federal budget will be disappointed...

December 16, 2014 - IMFnews

Short Takes: Can it Get Any Worse for Ocwen? / JPM Makes Progress on Loan Mods / Skyline Will Double its Capital Base / No Love for Russia / #1 in St. Louis?

The subordinated debt deal will double the capital base of Skyline Lending.

December 16, 2014 - IMFnews

More Regulatory Woes for Ocwen – This Time From the National Servicing Monitor; Stock Hit

The servicing monitor then hired an independent accounting firm, McGladrey, to retest Ocwen’s performance on a number of metrics tied to the national servicing settlement.

December 16, 2014 - IMFnews

Ellington Financial Invests in Skyline; Lender May Double Production

Skyline CEO Bill Dallas predicted that the nonbank funder could originate almost $4 billion next year, almost double what it produced this year.

December 16, 2014 - IMFnews

Servicing Settlement Monitor Sees Improvement at Everyone but Ocwen

The monitor said Green Tree is working toward addressing issues that caused the servicer to fail eight metrics that were tested in the fourth quarter of 2013.

December 15, 2014 - IMFnews

Short Takes: CMLA Wants GSEs to Retain Net Earnings / Cantor Expands Whole Loan Trading Desk / Carrington Hires Orman / Some Nice Words for Ocwen / FCI Shows Strong Growth

Moreover, CMLA wants lower guaranty fees for seller/servicers...

December 15, 2014 - IMFnews

Public Company Selling $800 Million of Fannie/Freddie MSRs

Roughly 86 percent of the mortgages were correspondent originations.

December 15, 2014 - IMFnews

Depositories Increased MSR Values in 3Q but Also Shed Product

Bank and thrift MSR holdings peaked at $5.977 trillion back at the end of 2009.

December 15, 2014 - IMFnews

It’s Official: LenderLive Will Sell Control of Company to Private Equity Firm

Aquiline is headed by Jeffrey Wayne Greenberg, son of former AIG chairman Maurice “Hank” Greenberg.

December 15, 2014 - IMFnews

Ocwen Resumes Ginnie Buyouts But at a Much Lower Level

Ocwen also did not disclose what it paid to acquire the nonperforming loans or who the buyer was.

December 15, 2014 - IMFnews

GSE Seller/Servicer Buybacks Hit Post-Crash Low; Banks Over-Reserving?

As of September 30, banks and thrifts held $15.50 billion in repurchase reserves, most of it tied to Fannie/Freddie loans.

December 12, 2014 - Inside Mortgage Trends

MSR Values Edge Higher in 3Q14

Commercial banks and thrifts reported slightly higher valuations on their mortgage servicing rights during the third quarter of 2014, but they continued to shed MSR, according to a new Inside Mortgage Trends analysis of call-report data. Banks serviced a total of $4.412 trillion of home mortgages for other investors, typically loans that have been pooled in mortgage-backed securities. That was down 1.0 percent from the second quarter and off 7.5 percent from the third quarter of 2013 ...

December 12, 2014 - Inside The GSEs

GSEs Won’t Say How Much Servicing Is Being Transferred

Transfer of mortgage servicing rights, especially from banks to nonbanks, has been widely discussed over the past few years, but Fannie Mae and Freddie Mac aren’t saying how much is changing hands. One investment banking official who sells MSR for a living said he believes that through the first nine months of 2014, about $350 billion in agency receivables changed hands, but has no solid evidence to back it up. In fact, several servicing advisors contacted by Inside The GSEs declined to take a stab at making an estimate. According to Inside Mortgage Trends, an affiliated newsletter, commercial banks and thrifts have reduced the unpaid principal balance of home loans they service for other investors by $357.6 billion in the ...

December 12, 2014 - IMFnews

What We’re Hearing: Does Impac Have Money for a Big M&A Deal? / Ocwen Catches the Eye of Treasury / A 480 FICO Score Lender? / How Fannie and Freddie Really Feel About Nonbanks

What do Fannie and Freddie really think of nonbanks? Read their SEC filings.

December 12, 2014 - Inside MBS & ABS

San Francisco Puts Eminent-Domain Talks on Hold Pending Results of a Study of ‘Joint Powers Authority’

The City of San Francisco has delayed a proposed partnership with Richmond, CA, to use eminent-domain authority to forcibly acquire distressed mortgages out of non-agency securitization trusts, opting instead to study the impact of such an agreement as well as other alternatives to assist underwater homeowners. Opposition by the San Francisco City Controller and the mortgage banking industry has forced John Avalos, a member of the city’s Board of Supervisors, to scale back his partnership proposal. Avalos laid out...

December 12, 2014 - IMFnews

CitiMortgage Gets Its HAMP Payments, Treasury Looking Into Ocwen’s Misdated Letters

Nationstar, Ocwen, Select Portfolio Servicing and Wells Fargo all need moderate improvement in their HAMP performance.

December 11, 2014 - IMFnews

Impac in Talks to Buy ‘Leading’ Mortgage Originator, Eye on ‘Alt’ Expansion

But who is the mystery lender that Impac is talking to?

December 12, 2014 - IMFnews

Treasury Joins the Chorus of Government Institutions Fretting About Nonbank Servicers

The Conference of State Bank Supervisors is working on capital requirements for nonbank servicers, a story first reported by Inside Mortgage Finance last month.

December 11, 2014 - Inside Mortgage Finance

Treasury Calls for Servicing Reforms Beyond Capital Requirements, Including Changes to Compensation

The migration of mortgage servicing rights from “more tightly to less tightly regulated parts of the financial system” should be addressed by regulators, according to the Treasury Department’s Office of Financial Research. The OFR, which was created by the Dodd-Frank Act to serve the Financial Stability Oversight Council, said Basel capital requirements have created incentives for banks to sell MSRs to nonbanks. In its annual report, the OFR cautioned that nonbanks aren’t as well regulated as banks. “Mortgage servicing activity and the accompanying risks appear...

December 11, 2014 - IMFnews

Short Takes: Mortgage M&A Trend Hits Utah / GSEs Can’t Pass On the Cost to Lenders / No More Flips With FHA Loans / A Nice Dividend From PennyMac / A Coming Refi Boom? Yes or No?

But there's one little wrinkle: the GSEs cannot pass the cost of funding the HTF onto lenders…

December 10, 2014 - IMFnews

Short Takes: Are Investors Done Selling Ocwen’s Stock? / Who Might DocMagic Buy Next? / How is CitiMortgage Like Ocwen? / CFPB Budget Rises / Fannie Mum on Reinsurance Partners

But is DocMagic president and CEO Dominic Iannitti done buying? Stay tuned…

December 10, 2014 - IMFnews

Ocwen’s Ginnie Mae Buyouts Fell to Zero in Third Quarter

A spokesman for Ocwen – which is also the nation’s eighth largest Ginnie Mae servicer – declined to comment on anything having to do with buyouts.

December 10, 2014 - IMFnews

In 2015, Half of All CFPB Staffers Will be in Supervision, Enforcement or Fair Lending

Compared to two years ago, staffing levels at the CFPB have increased a whopping 55 percent. Of course, Congress has no say over the agency’s budget.

December 9, 2014 - IMFnews

Short Takes: A Bond Backed by 10-Year-Old Alt A Loans / CalCap Expands into Arizona / Ocwen Gives a Nice Raise to CFO / A No PMI Loan From Stonegate / Sherwood Gets Prez Job at NMI

Ocwen Financial, whose stock has been clobbered this year, recently increased the base salary of its chief financial by $50,000...

December 9, 2014 - IMFnews

MountainView Floats Two New Ginnie Mae MSR Portfolios

The $227 million portfolio is top heavy with California product which accounts for roughly 62 percent of the receivables.

December 9, 2014 - IMFnews

‘Fix and Flip’ Lender CalCap: 11% Loans are Not For Us Anymore

CalCap is about to enter the Phoenix market and is considering other western states as well.

December 9, 2014 - IMFnews

Nonprofits Complain About Losing GSE, FHA NPL Auctions to Hedge Funds

Many of those winning bidders are hedge funds with Wall Street backing, including Lone Star Funds and Bayview Asset Management.

December 9, 2014 - IMFnews

FHFA Still Working on Capital, Liquidity Standards for Nonbanks

One source told IMF that in some instances, certain nonbanks have been asked by the agencies to hold “more capital” in reserve accounts than other seller/servicers.

December 8, 2014 - Inside the CFPB

Special Servicers Beat Banks on Handling Distressed Mortgages

Special servicers continue to outperform the big banks when it comes to dealing with distressed mortgages, and that bodes well for the future of transferring distressed servicing rights, according to a new report by analysts at Compass Point Research & Trading. “Servicers have been under a ton of scrutiny in the past several quarters due to their servicing practices,” the analysts said, based on their review of homeowner complaints to the CFPB. “However, as the complaint data show, the special servicers screen as being significantly better at servicing distressed mortgages compared to the big banks.” According to their analysis, US Bank (18.2 percent), PNC Financial (14.8 percent) and SunTrust (11.3 percent) have had the highest level of complaints per delinquent ...


What will Fannie Mae’s and Freddie Mac’s new 97 LTV programs mean for your business?

It will give our business a big boost as there is a lot of pent up demand for the product.
It will have only a minor impact on our overall business as we already are doing high LTV business through FHA and some of our high LTV FHA business is likely to shift to Fannie and Freddie.
It won’t have any impact on our business as we plan to steer clear of all high LTV business – particularly in the GSE market.

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