Mortgage Servicers

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

February 17, 2017 - IMFnews

What We’re Hearing: Huge GSE Profits, Don’t Get Used to It / The Perfect (Earnings) Storm / A Ginnie Solution for the GSEs? / PHH’s New Strategy / Aide to HUD Nominee Ben Carson Fired for Writings Critical of Trump

One former Fannie Mae official told us that stellar profits posted by the two are “just about done.”

February 17, 2017 - IMFnews

Fannie Mae Has a Blowout 4Q16: Net Profit Hits $5 Billion; A Perfectly Good Storm?

Fannie Mae CEO Timothy Mayopoulos is setting the table for challenging times ahead, issuing caution about the GSE’s dwindling capital position…

February 17, 2017 - IMFnews

CFPB Weighing Enforcement Action Against Altisource Over Services Provided to Ocwen

Late last decade Altisource was spun-off from Ocwen, a once large servicer that in years past had been sanctioned by regulators for some of its servicing practices.

February 16, 2017 - IMFnews

A Blowout 4Q16 Profit for Fannie Mae: $5 Billion; $3.9 Billion in Gains from Derivatives

In a conference call with reporters Friday morning, Fannie CEO Tim Mayopoulos noted: “While we expect to remain profitable on an annual basis for the foreseeable future, due to our declining and limited capital reserves and the potential for significant volatility in our financial results, we could experience a net worth deficit in a future quarter.”

February 16, 2017 - Inside Mortgage Finance

Delinquencies Increase on a Quarterly Basis At the End of 2016, Foreclosures Decline

Mortgage delinquencies in the fourth quarter of 2016 hit their highest level of the year, erasing declines from the previous quarter, according to the Inside Mortgage Finance Large Servicer Delinquency Index. The foreclosure rate continued to decline, hitting levels last seen in 2007. Among the servicers tracked by the index, the total mortgage delinquency rate was 5.05 percent as of the end of the fourth quarter. The rate was at 5.54 percent at the end of 2015 and declined each quarter until the most recent period. Each delinquency bucket increased...[Includes one data table]

February 16, 2017 - Inside Mortgage Finance

The Time is Right for a Boom in Servicing Sales. Another Month or Two of Slow Prepayments Could Spur Market

The secondary market for bulk agency mortgage servicing rights is beginning to pick up a decent head of steam, but one factor is holding it back from a full-throttle: worries about prepayment speeds. “We’ve had one month of low prepayment numbers,” said Mark Garland, president of MountainView Servicing Group, Denver. “A couple of more months would be better.” According to investment bankers who work the market, although rates have been on a steady climb since the November election – the yield on the benchmark 10-year Treasury is...

February 16, 2017 - IMFnews

Short Takes: What Does Bruce Berkowitz Think? / Freddie Exploring SFR Market / BB&T Building New Servicing Center / CoreLogic CEO on Medical Leave / loanDepot Executive Jumps Ship for Wisconsin Lender

While most banks are running away from the business of servicing home mortgages, BB&T appears to like the space...

February 16, 2017 - IMFnews

More Red Ink for PHH in 4Q16; Nonbank Continues to Sell Assets; CEO Messina Sees Future as a ‘Capital Light’ Business

Over the past two years, PHH has lost $347 million, much of it caused by a private-label origination model that has fallen on hard times and rapidly declining interest rates…

February 15, 2017 - IMFnews

Freddie Mac Hits an Earnings Grand Slam in 4Q16: $4.8 Billion in Net Income; Gains from Derivatives Top $6.3 Billion

When Freddie makes that next “dividend” payment, its “account surplus” with Treasury will total $34.6 billion: federal assistance of $71.3 billion since September 2008 versus dividend payments of $105.9 billion.

February 15, 2017 - IMFnews

A Large 4Q16 Loss for PHH; More Asset Sales...

Among the key announcements: the company is selling its PHH Home Loans joint venture to Guaranteed Rate; unloading its private label operations to LenderLive Network, and monetizing “certain” servicing assets.

February 15, 2017 - IMFnews

Short Takes: Branch Manager Departures at loanDepot / Nationstar a Candidate for PHH MSRs? / Delinquencies Spike in Some Categories / Still in Love with Ocwen: Bill Erbey / Coming Soon: Warehouse Ranking

Bill Erbey, who was forced out by financial regulators two-plus years ago, controls 16.8 percent of Ocwen Financial...

February 15, 2017 - IMFnews

SoftBank of Japan Agrees to Buy Fortress, Largest Investor in Nationstar Mortgage

It’s unclear at this point what the takeover might mean, if anything, for Nationstar, whose own share price has rallied the past few months.

February 15, 2017 - IMFnews

Tennessee Investor Pares Holdings in Walter Investment Management

Walter Investment/Ditech has yet to establish a date for the release of its fourth quarter results…

February 15, 2017 - IMFnews

The Mortgage M&A Game is On! In the Hunt: Blackstone, Flagstar and Others

“Anytime you have rates run up by 50 basis points, it usually takes about 90 days before a washout begins,” said one mortgage advisor.

February 15, 2017 - IMFnews

Sen. Crapo, Fed Chair Yellen Agree Housing Finance Reform is Urgent

Fed Chairman Janet Yellen on the future of Fannie and Freddie: “…I would hope that Congress would decide explicitly on what the government’s role is and if there are guarantees, that they would be recognized and priced appropriately.”

February 14, 2017 - IMFnews

Blackstone Invests in B2R Finance, Then Buys Fix & Flip Lender Jordan Finance

Mark Filler, who founded Jordan and served as its CEO, was named president of Finance of America Commercial.

February 13, 2017 - Inside the CFPB

Consumers Still Complaining About Mortgage Servicing Practices

Mortgage borrowers still have plenty to complain to the CFPB about, especially on the mortgage servicing front, the latest monthly consumer complaint report from the bureau suggests. “The most common issues identified by consumers are problems when they are unable to pay (loan modification, collection, foreclosure),” which were cited by 49 percent, according to the CFPB, followed by issues making payments (loan servicing, payments, escrow accounts), identified by 33 percent. Other homeowners brought up problems having to do with applying for a loan (application, originator, mortgage broker), which was noted by 9 percent, followed by signing the agreement (settlement process and costs), which was highlighted by 5 percent, and receiving a credit offer (credit decision, underwriting [With Two Data Charts]....

February 13, 2017 - Inside the CFPB

Trump Goes After Dodd-Frank Regulations, CFPB Impact Unclear

President Donald Trump has put the Dodd-Frank Act in his crosshairs, issuing an executive order earlier this month that directs the Treasury secretary to work with the members of the Financial Stability Oversight Council to review the current regulatory regime and evaluate it according to a handful of “core principles” Trump believes should shape the regulation of the U.S. financial system. The principles include fostering informed consumer choices, preventing bailouts, promoting economic growth, tailoring regulations and ensuring regulatory accountability. Industry observers and Republicans and Democrats alike on Capitol Hill saw the order as the beginning of an attack on Dodd-Frank and perhaps even a shot across the bow of the CFPB, with negative implications for the agency’s mortgage lending and ...

February 13, 2017 - IMFnews

IMA and Phoenix Capital Hit Market with New MSR Deals

Phoenix Capital is offering a private jumbo MSR portfolio sized at $216 million…

February 13, 2017 - IMFnews

Can Walter/Ditech Find a Path Forward?

Institutional investors tend to avoid any stocks that are priced below $5 a share. At press time, Walter’s stock was trading at $3.40.

February 10, 2017 - IMFnews

Thanks to Booming Online Retail Sales, Certain Malls With Departing ‘Anchor Tenants’ Are Suffering

How bad is it? Since 2010, liquidations amounting to $3.89 billion led to $2.88 billion in CMBS losses, a 74.0 percent loss severity.

February 10, 2017 - IMFnews

The Benefits of Owning Fannie/Freddie Preferred Stock Over Common

The two GSEs were placed in conservatorship in September 2008 by Treasury and the Federal Housing Finance Agency. At the time, their common and junior preferred shares were considered worthless.

February 9, 2017 - Inside Mortgage Finance

Many Metro Markets Witnessed Record Home Price Highs in 2016, Distressed Sales Down

Home prices in 2016 soared as a number of metropolitan areas reached record new home price highs, according to ATTOM Data Solutions’ yearend report on home sales. Among 201 metropolitan statistical areas with populations of at least 200,000, 44 percent hit new all-time home price peaks last year. Those areas include Dallas-Fort Worth ($230,571), Houston ($214,795), Atlanta ($181,000), Boston ($390,000) and San Francisco ($720,000). Three Ohio markets, Cincinnati, Columbus and Dayton, also reached...

February 9, 2017 - IMFnews

Short Takes: Time to Sell GSE ‘Juniors’? / Bruce Berkowitz, True Believer / What Fannie, Freddie and Sears Have in Common / Whatever Happened to Sears Mortgage? / Texas Capital Accumulating MSR Assets / First Franklin Settles FHA Charges

Besides the GSEs, one Fairholme’s most speculative investments is Sears Holdings Corp., the struggling retailer…

February 9, 2017 - IMFnews

BlackRock Executive Craig Phillips Could Play a Role in GSE Reform

Phillips, managing director of financial markets/client solutions at BlackRock, is well known in MBS circles for his early days at First Boston…

February 9, 2017 - IMFnews

Consumers Still Complaining About Mortgage Servicing Practices to the CFPB

Complications tied to making payments (loan servicing, payments, escrow accounts), were identified by 33 percent of consumers filing a complaint.

February 8, 2017 - IMFnews

Short Takes: Fix & Flip Lender Targets Multifamily Sector / Branching Out Into Florida / No Word on Carson and His Deputy / New Rez Tests ABS Market / Fed General Counsel Alvarez Announces Retirement

The full Senate could vote on the Ben Carson nomination next week...

February 8, 2017 - IMFnews

Mortgage Hiring Increased in December, but Several Lenders are Taking a ‘Wait and See’ Approach

CMG Mortgage founder and CEO Chris George said that when it comes to hiring he's mostly in a "holding pattern" right now, with exceptions...

February 8, 2017 - IMFnews

The CFPB Focuses on a Traditional Interpretation of RESPA Violations

The CFPB said Prospect Mortgage entered into agreements to buy leads from more than 200 different counterparties, most of which were real estate brokers.

February 7, 2017 - IMFnews

Short Takes: Blackstone’s Tentacles / MBA Sides with PHH in CFPB Case / Banks Might Ease GSE Standards / The ‘Silver Bullet’ to Replace LOs with Machines / Stonegate Hires SunTrust Executive

Correspondent lending accounts for 21.4 percent of Stearns’ total origination volume, based on fourth quarter figures from Inside Mortgage Finance…

February 7, 2017 - IMFnews

Fitch Gives ‘Average’ Ratings to Nonprime Lenders Angel Oak, Citadel and Deephaven

The assessment matches the rating service’s “grade” on Caliber Home Loans, which issued the first AAA-rated nonprime MBS backed by new originations.

February 7, 2017 - IMFnews

Blackstone in Takeover Talks with ‘Fix & Flip’ Lender Jordan Capital

Over the past two years, the Wall Street giant has purchased a handful of nonbank lenders, including Gateway Funding...

February 6, 2017 - IMFnews

PHH Promises More Disclosures on its Future When it Releases 4Q16 Results

PHH Corp., for years, has been trying to unload its entire mortgage franchise, a process complicated by both regulatory sanctions and large accounting losses tied to declining interest rates.

February 6, 2017 - IMFnews

Citigroup’s Exit from Servicing, the First Step in a Total Withdrawal from Mortgages?

Dave Akre, who runs Whole Loan Capital, noted, “How can they stay in the mortgage origination business when servicing is a huge part of the borrower experience?”

February 3, 2017 - Inside FHA/VA Lending

Around the Industry

Final Civil Action: Primary Residential Mortgage. The Department of Housing and Urban Development’s Office of the Inspector General has recommended that the department’s Office of Legal Counsel acknowledged $3.13 million of a $5 million settlement agreed to by Primary Residential Mortgage is due HUD. Primary agreed last September to a $5 million settlement with the Department of Justice to resolve allegations of failing to comply with FHA requirements in connection with its origination, underwriting and endorsement of 100 FHA-insured loans. Primary’s settlement is neither an admission of guilt nor assumption of any liability that may arise from the flawed transactions, the IG said. As of Oct. 4, 2016, the settlement amount due HUD had been paid in full. Moody’s Downgrades $243 Million of FHA/VA Residential MBS. Moody’s Investors Service has downgraded the ...

February 3, 2017 - Inside FHA/VA Lending

HUD Issues Guidance on Servicing Loans on Homes with PACE Liens

The Department of Housing and Urban Development has issued guidance for servicing FHA-insured mortgages on properties encumbered with a Property Assessed Clean Energy (PACE) obligation. The PACE guidance establishes servicing policies and procedures that went into effect on Jan. 19, 2017. It applies to all FHA Title II forward mortgages. A PACE loan is a way to finance clean-energy improvements in residential and commercial properties to reduce energy bills and facilitate water and energy conservation. The terms and conditions of a PACE loan may vary among state, local government and programs. Generally, a PACE loan is secured and collected in the same manner as a special tax assessment on the owner’s property. Payments are not made directly to the ...

February 3, 2017 - Inside FHA/VA Lending

MBA Concerned About Lack of Consumer Protections in PACE

The Mortgage Bankers Association has asked the Trump administration to help close a loophole in the Property Assessed Clean Energy (PACE) program that could put consumers at risk. In a recent public service video, Pete Mills, MBA senior vice president for residential policy and member engagement, said the MBA has been in contact with the president’s transition team to see if there is a way to incorporate consumer protections into the program. Mills noted a “significant void in consumer protection” due to the structure of PACE programs. The PACE program allows local or state governments, when authorized by state law, to finance the upfront cost of energy upgrades on commercial, residential or industrial properties. A PACE loan is repaid over a set period – typically 10 to 20 years – through a special assessment on the property on top of the owner’s annual property tax bills. It has seniority over all ...

February 3, 2017 - Inside Nonconforming Markets

News Briefs

PennyMac Financial Services has significantly curtailed its originations of jumbo mortgages in recent years, and ended 2016 nearly out of the sector all together. PennyMac didn’t have any jumbo originations in the fourth quarter and as of the end of 2016, the nonbank only had $1.0 million in locked jumbos in its pipeline. Citigroup has entered into a subservicing agreement with Cenlar for the bank’s non-agency mortgages. Servicing is expected to be transferred ... [Includes four briefs]

February 3, 2017 - IMFnews

What We’re Hearing: Mnuchin Has Been Concentrating on the GSE Issue / More Banks Expected to Outsource Servicing / Showing the Love for Servicing / And You Can Have Your Stock Back Too / The Cordray Check: Still in Town, Still Running the CFPB

When commercial banks run screaming from a business, it usually opens up a huge opportunity for nonbanks…

February 3, 2017 - Inside MBS & ABS

New Residential to Issue $400 Million ABS Backed by Servicer-Advances on Loans Serviced by Ocwen

An affiliate of New Residential Investment is preparing to issue a $400.0 million ABS backed by servicer-advance receivables, according to S&P Global Ratings. The ABS relates to mortgages serviced by Ocwen Financial. NRZ Advance Receivables Trust 2015-ON1 Series 2017-T1 received preliminary AAA ratings from S&P. In addition to citing strengths in the structure of the ABS to support a AAA rating, S&P noted that it upgraded its servicer ratings for Ocwen from “below average” to “average” in September. Series 2017-T1 is...

February 3, 2017 - IMFnews

PennyMac Financial’s 4Q16 Results: Originations Rise but Earnings Decline; MF Rollout in the Works

PFSI is forecasting that by the second half of 2017 it will be originating $40 million to $60 million per quarter in multifamily loans.

February 2, 2017 - Inside Mortgage Finance

New Residential Bulks Up on MSR Assets. Regulatory Scrutiny Not Far Behind? Behind the Scenes: Fortress

Real estate investment trust New Residential Investment Corp. has been quietly trolling for mortgage servicing assets the past year and snagged a big one this week when it agreed to buy $97 billion in agency rights from Citigroup. Now comes the hard part: incorporating the receivables into an already fast-growing portfolio and convincing regulators at the Federal Housing Finance Agency and Ginnie Mae officials that it has both the management structure and the financial wherewithal to handle so much product. According to a tally from Inside Mortgage Finance, since early December New Residential has acquired...

February 2, 2017 - Inside Mortgage Finance

Citigroup May Have Company as it Exits the MSR Arena; The First Step in an Eventual Withdrawal from Lending?

Not only did Citigroup shock the market this week with its decision to exit residential servicing operations, but the move could be the start of an eventual withdrawal from all mortgage banking. For now, the nation’s sixth-largest servicer – and 13th-largest originator – is strongly refuting such talk, but that isn’t stopping the industry from speculating on the megabank’s next move. “If they firmly believe they can’t make money in servicing and cross-selling, then this is...

February 2, 2017 - Inside Mortgage Finance

Nonbank Share of Top 50 Mortgage Servicers Up Sharply in 4Q16, Plenty of Upheaval Ahead

Nonbanks continued to grab a larger share of the mortgage servicing business during the fourth quarter of 2016, and the rapid emergence of investor servicers – firms that buy mortgage-servicing rights while tapping other firms to actually administer the pools – promises to bring more change. A new Inside Mortgage Finance ranking and analysis shows that nonbanks that ranked among the top 50 servicers increased their holdings by 6.9 percent during the fourth quarter. Depository institutions among the top 50 servicers reduced their holdings by 1.2 percent during the same period. With Citi, the sixth-largest servicer at the end of 2016, now in the process of selling a large chunk of its MSR assets – in some cases to investors that will use subservicers – the demographics of the industry will change...[Includes two data tables]

February 2, 2017 - IMFnews

Short Takes: A Bank in the Hunt for Mortgage M&A / PRMI Has Record Year / Citadel Passes the $1 Billion Mark / SFIG Starts ‘Grassroots’ Effort / SoFi Buys Zenbanx / Why Didn’t You Go With Me? Was it Something We Did?

The "Lost Sales Analysis" product – licensed from its developer, Equifax – helps originators determine if applicants closed a mortgage with a competitor.

February 2, 2017 - IMFnews

MountainView, Phoenix Capital Out with New MSR Deals

With interest rates staying steady the past few weeks, more bulk MSR deals are hitting the market.

February 2, 2017 - IMFnews

Flagstar’s President of Mortgage Banking Len Israel Departs

During his career, Israel has worked for IndyMac Bank and other shops.

February 2, 2017 - IMFnews

No Sign of Slowing Down: Nonbank Share of Top 50 Servicers Keeps Growing

A fun fact for nonbanks: Depository institutions among the top 50 servicers reduced their holdings by 1.2 percent during the same period.

February 1, 2017 - IMFnews

Short Takes: FGMC Hires Former Ocwen Official to Run Wholesale / A Bullish Sign for Ocwen? / Top 10 Dreams / Housing is a (Single) Girl’s Best Friend? / Mnuchin Nomination Moves Forward

The nomination of investment banker Steven Mnuchin to head the Treasury Department moved forward Wednesday...

February 1, 2017 - IMFnews

CFPB Slams Nonbank Prospect for Violating RESPA

The CFPB also took action against two realty firms: ReMax Gold Coast and Keller Williams Mid-Willamette...


With rates higher this year, there has been talk of lenders liberalizing their underwriting standards in an effort to increase volume and make up for lower refis.

Do you think your shop will loosen standards over the coming three months?

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Yes and, heck, we may even do non-QM lending.
No, not at all.
No and we may even tighten credit.

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