Mortgage Servicers

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

September 23, 2016 - Inside FHA/VA Lending

VA Issues Clarifying Guidance for Manufactured, Mobile Properties

VA Home Loan Guaranty has issued clarification regarding title requirements for manufactured or mobile homes conveyed to the Department of Veterans Affairs. Effective immediately, VA is requiring proof of noteholders’ compliance with the agency’s requirements for guaranteed mobile-home financing. Foreclosure title packages that do not include the required documents will be rejected, the agency warned. Under federal law, a manufactured home must be permanently affixed and classified as real property in the state where it is located. VA will not guarantee financing if the property does not meet the criteria. To ensure that a guaranty claim is fully payable and that the holder has the option to convey the manufactured home to VA, servicers must ensure that home loans with a VA guarantee meet federal requirements. Under the clarified VA guidelines, servicers may submit the ...

September 23, 2016 - Inside FHA/VA Lending

HUD Poised to Collect Huge FCA Settlement Funds from Lenders

The Department of Housing and Urban Development is set to receive more than $140 million in settlements with three individual lenders in connection with defective loans they originated with FHA insurance. Freedom Mortgage Corp., M&T Bank, and Land Home Financial Services all reached separate agreements this year with the Department of Justice on behalf of the HUD Inspector General to resolve the allegations. On April 15, Freedom agreed to pay $113 million, in response to charges that “it engaged in certain conduct in connection with its origination, underwriting, property appraisal and quality of certain single-family mortgages insured by FHA.” The disputed forward loans were insured by FHA between Jan. 1, 2006, and Dec. 31, 2011, which resulted in claims submitted to HUD on or before June 15, 2015. HUD incurred substantial losses when it paid claims on the ...

September 23, 2016 - Inside FHA/VA Lending

Liquidity, Net Worth Issues Persist But Nothing Ginnie Can’t Manage

Ginnie Mae continues to wrestle with issuers lacking liquidity and net worth although the number of such cases has gone down significantly, thanks to tight oversight, according to the agency’s top counterparty risk officer. Briefing participants at this year’s Ginnie Mae summit in Washington, DC, Zack Skochko, director of counterparty risk, reported that some issuers are still struggling to comply with Ginnie Mae’s liquidity and net worth requirements.A number of small issuers failed their liquidity and net worth audits this year by not maintaining the minimum $1 million cash or 10 basis points of outstanding Ginnie securities required to participate in the agency’s mortgage-backed securities program. Ginnie Mae also requires issuers to meet a minimum net worth of $2.5 million plus 35 bps of the issuer’s total effective single-family obligations The requirements were designed to ensure that the ...

September 23, 2016 - Inside FHA/VA Lending

Streamline Refi Segment Causing Problems for VA, Ginnie Investors

The Department of Veterans Affairs is working on a change to its existing streamline refinancing policy to address a problem that is giving VA and Ginnie Mae the fits. Under the VA’s qualified-mortgage rule, a VA borrower must wait six months and show six months’ worth of mortgage payments before they can refinance into an IRRRL (Interest Rate Reduction Refinance Loan) and take advantage of the lower rate. However, it seems not all VA lenders are adhering to the rule and that a good number are refinancing veterans into IRRRLs even before the mandatory seasoning period ends for fear interest rates might rise and the borrower might not benefit from the lower rate. “I’ve redone the numbers in 20 different directions on how much a borrower would save if they had to wait two more months and the rate went up a quarter of a point because they lost those two months ...

September 23, 2016 - Inside Nonconforming Markets

Ocwen Dominates Initial Streamline HAMP Mods

Ocwen Financial accounted for slightly more than half of the modifications completed under the new Streamline Home Affordable Modification Program offering, according to the company. Streamline HAMP mods are only available for non-agency mortgages. The program is aimed at borrowers who meet general HAMP eligibility criteria but haven’t completed a loan mod application by the time their loan is 90 days delinquent. It’s streamlined in that no income documentation is ...

September 23, 2016 - Inside MBS & ABS

Trade Groups Representing Small/Mid-Sized GSE Seller-Servicers Circle the Wagons Around the CSP

Some small and medium-sized lenders continue to fear that their access to the secondary mortgage market could be hampered if the fledgling common securitization platform of Fannie Mae and Freddie Mac is turned over to the private sector. At this point, the CSP is a joint venture owned by the two government-sponsored enterprises with a long-term future as uncertain as that of the GSEs themselves. But there are rumors that Congress may transfer the CSP to private owners sooner than expected. The vehicle for such a transfer would not be...

September 22, 2016 - Inside Mortgage Finance

Some RMBS Originators are Replacing QC Reviews With Feedback from Whole Loan Investors: Moody’s

Some residential mortgage-backed securities loan originators are moving away from performing internal post-acquisition quality control loan reviews in lieu of obtaining feedback from their whole loan investors, according to a new report from Moody’s Investors Service. “Some aggregators are relying more on their investors for quality control feedback,” said Moody’s. The ratings service identified in particular Redwood Residential Acquisition Corp. and JPMorgan Mortgage Acquisition Corp., which it said “are relying more on feedback from whole loan investors to monitor the quality of due diligence firm loan reviews, as opposed to conducting their own internal reviews, since a large portion of their acquisitions are sold in whole-loan trades.” Moody’s noted...

September 22, 2016 - Inside Mortgage Finance

Impac Sells Additional Shares to the Public, a Good Sign for The Market. Unfortunately, Investors Reacted Negatively

Impac Mortgage Holdings late last week came to market with a “follow-on” offering of 3 million shares of common stock, the first public equity sale by a pure-play mortgage company in almost three years. Unfortunately, investors were not happy. When the shares hit the New York Stock Exchange last Friday, not only did Impac’s stock price tumble almost 9.0 percent, but it has continued to drift downward, resting at just over $13.00 a share as Inside Mortgage Finance went to press this week. The share price of the nation’s 28th largest originator hit...

September 22, 2016 - IMFnews

Short Takes: Don v. Hillary. Bring the Popcorn / The Future of Fannie and Freddie? / How to Promote Homeownership / JPM Finishes the Mortgage Test Early

Meanwhile, if you want to know where Clinton and Trump stand on the issue of homeownership in America, you can review their respective party platforms...

September 22, 2016 - Inside Mortgage Finance

Liquidity, Credit Access, Regulation Remain As Chief Concerns As Ginnie Mae Stakeholders Meet to Discuss Market’s Future

With liquidity and an uncertain regulatory environment dominating this year’s Ginnie Mae summit in Washington, DC, top agency officials called on stakeholders and other market participants to stand up to the challenges posed by a rapidly evolving Ginnie marketplace. Chief among those challenges is the growing domination of the Ginnie market by independent mortgage bankers, who now account for 80 percent of the agency’s monthly issuance volume. Ginnie President Ted Tozer reiterated his concerns raised last year about the increasing number of nonbanks in the agency mortgage-backed securities market with very little experience and liquidity. In his opening remarks, Tozer acknowledged...

September 22, 2016 - Inside Mortgage Finance

Servicing Business Continued Shifting Toward Nonbanks In 2Q16, and It’s Becoming Somewhat Less Top-Heavy

Nonbank loan administrators expanded their share of the mortgage servicing market during the second quarter, mostly capturing agency business abandoned by large banks, according to a new ranking and analysis by Inside Mortgage Finance. Commercial banks, savings institutions and credit unions reported a combined single-family servicing portfolio of $6.930 trillion as of the end of June, according to call reports. That was down 0.5 percent from the previous quarter despite the fact that the total depository portfolio holdings of unsecuritized mortgages increased 1.7 percent during that period. But bank, thrift and credit union loan servicing for others – typically loans held in mortgage-backed securities trusts – fell...[Includes two data tables]

September 22, 2016 - IMFnews

SEC Charges Against Hedge Fund Chief Include Allegations Tied to Altisource Investment

Altisource’s stock price declined by 6.4 percent to $30.77 per share shortly after the charges were announced, but the stock has rebounded somewhat…

September 22, 2016 - IMFnews

The Final Tally: Production Profits Rose in 2Q16, but Servicing Results Hammered

A group of 13 publicly traded lenders reported a combined $1.72 billion in production and secondary marketing income for the second quarter.

September 22, 2016 - IMFnews

And the Beat Goes On: Banks Continue to Cede MSR Business to Nondepositories

Meanwhile, bank whole loan portfolios have been increasing – largely because of the resurgence of jumbo mortgage originations, along with the recovery in home-equity lending.

September 21, 2016 - IMFnews

Judge Orders Govt. to Produce More GSE-Related Docs, Shows Signs of Frustration

Margaret Sweeny, the judge presiding over the case, is growing increasingly frustrated with the government’s attempt to keep documents out of the public domain

September 21, 2016 - IMFnews

Former Clayton Chief Joe D’Urso Lands at Pretium Partners

Founded by former Goldman Sachs executive Donald Mullen, Pretium Partners bills itself as a specialized investment management firm with roughly $6.5 billion of assets under management.

September 20, 2016 - IMFnews

Short Takes: The Wells Fargo Senate Barbeque / The Scandal’s Effect on Wells’ Mortgage Business? / Hats Off to the Los Angeles Times / Sen. Warren Slams Stumpf / Jumbo Update

Will a potential residential mortgage customer bolt Wells Fargo because they can’t trust the bank’s employees, including its retail loan officers?

September 20, 2016 - IMFnews

MountainView, Prestwick Roll Out New MSR Auctions

As rates increase, more deals are hitting the market...

September 19, 2016 - Inside the CFPB

CFPB Provides Guidance to CSBS on its Mortgage Rules

The CFPB recently provided some written guidance on its mortgage rules to the Conference of State Bank Supervisors. The guidance, in the form of a letter, highlights some of the important changes to the mortgage rules that likely apply to many of the small lenders that CSBS members supervise. The letter, a copy of which was obtained by Inside the CFPB, came in response to a meeting this spring between Texas Department of Banking Commissioner and CSBS Chairman Charles Cooper, members of the ...

September 19, 2016 - Inside the CFPB

Hensarling Bill Also Would Make Revisions to CFPB Mortgage Rules

H.R. 5983, the Financial CHOICE (Creating Hope and Opportunity for Investors, Consumers and Entrepreneurs) Act by Rep. Jeb Hensarling, R-TX, chairman of the House Financial Services Committee, has incorporated the provisions of a number of bills that have either already passed the committee or the full House of Representatives and that would affect ...

September 19, 2016 - IMFnews

Short Takes: Ocwen Executive Bolts for Flagstar / Number Seven with Hopes to Go Higher / RPM Mortgage Launches Second Lien Product / Will More Nonbanks Offer Seconds? / Time for a Background Check on Your Branch Manager?

We know of at least one nonprime lender offering seconds and we expect that in time others may follow…

September 19, 2016 - IMFnews

Phoenix Flow Deal Could Yield $3 Billion in Product

The identity of the seller was not revealed in the offering circular except to say the company is “well capitalized.”

September 19, 2016 - IMFnews

Credit Unions Voice Concerns over GSE CSP Project. A Level Playing Field?

NAFCU wants the FHFA to preserve existing Fannie and Freddie securities so they don’t become unmarketable after the launch…

September 19, 2016 - IMFnews

Ginnie Chief Tozer Lays it on the Line About MSR Values, Liquidity

Senior Vice President of Issuer and Portfolio Management Michael Drayne said recently the revised acknowledgement agreement could be ready by the end of September.

September 16, 2016 - IMFnews

What We’re Hearing: How Much Will the Brits Wind Up Paying the FHFA? / Maybe Elton and McCartney Can Help / Remember Lehman Brothers? / What Will Donald Trump do with Fannie Mae and Freddie Mac? / JPM Promotes Three

And since RBS is essentially owned by the British government, any settlement money will indirectly come from U.K. taxpayers. Who knows, maybe Adele, Paul McCartney and Elton John can chip in…

September 16, 2016 - Inside MBS & ABS

BNY Mellon Expands Servicing Oversight Business by Handling Reporting to GSEs for Many Smaller Servicers

Bank of New York Mellon has expanded its servicing oversight business by looking beyond the shrinking non-agency MBS market. The company recently started handling reporting duties for many small servicers on mortgages serviced for the government-sponsored enterprises. For 25 years, BNY Mellon has been a master servicer on non-agency MBS. The role involves oversight of primary servicers. BNY Mellon’s master servicing portfolio for non-agency MBS has declined along with the total amount of non-agency MBS outstanding. The firm handled...

September 15, 2016 - Inside Mortgage Finance

Home-Equity Lending Up Sharply in 2Q16 to Post-Crisis Record, But Portfolios Still Shrinking

Mortgage originators reported a sharp increase in home-equity lending during the second quarter of 2016, although it wasn’t as robust a gain as the 34.2 percent surge in first-lien originations. Lenders generated an estimated $53.5 billion in home-equity business during the second quarter, an increase of 18.9 percent from the first three months of the year. It was the strongest quarterly production number for the HEL market since the financial crisis. Halfway through 2016, home-equity lending was up 15.9 percent from last year and tracking toward $200 billion in annual production. Although home-equity lending has strengthened over the past few years as house prices have recovered to pre-crisis levels, the outstanding supply of home-equity debt continues...[Includes three data tables]

September 15, 2016 - IMFnews

Fourth Quarter Could be a Barn-Burner for MSR Sales

Potential MSR sellers abound, but what price will they accept?

September 14, 2016 - IMFnews

Short Takes: The CFPB Ready to Slam a Mortgage Lender? / Are Many MSA Agreements Left? / Ocwen a ‘Buy’? Is That Possible? / FHFA Readies Consumer Survey / Pickel Starts a New Job

Ocwen gets an upgrade, but there are doubters...

September 14, 2016 - IMFnews

Committee Passes Dodd-Frank Alternative; Promotes Portfolio Lending; Democrats Invoke ‘Wells Fargo’

The CHOICE Act also would make changes to the structure of the Consumer Financial Protection Bureau, including replacing the single directorship with a five-member board or commission.

September 13, 2016 - IMFnews

Short Takes: Does Anyone Recall What Happened on Sept. 6, 2008? / The Second Coming of the GSEs / Well, At Least Bernie is Happy / Former GSE Exec Maloni Puts it in Perspective / Is $5,000 a Fair Price for Foreclosure Legal Work?

The GSE conundrum in perspective: "The mortgage finance system is working so consumers are somnambulant; media occasionally write about it, but don’t get fired up; courts don’t seem to be upset over unprecedented Treasury bullying and revenue abuse..."

September 13, 2016 - IMFnews

Wells Fargo to Eliminate Sales Goals for Retail Bankers. Mortgages Not Affected

It’s not clear how many of the consumers with unauthorized accounts had mortgages with Wells, though the megabank and its peers have put an emphasis on cross-selling financial products to jumbo customers.

September 13, 2016 - IMFnews

Prestwick Flow Deal Could Yield $480 Million in Servicing Rights

“Are there bargain hunters out there?” asked one servicing executive. “To some extent, yes.”

September 12, 2016 - IMFnews

Short Takes: GSE Plaintiff Perry Capital Does Some Serious Shrinking / Tony Renzi’s First Day at Ditech / Hacking Might be an Issue / A New Hire For

It's hard out there for a hedge fund (suing the government regarding the GSEs)...

September 12, 2016 - IMFnews

RHS Ready to Cut Upfront Funding and Servicing Fees

Another reason for the cut in fees: rural housing delinquencies and foreclosures are at record lows.

September 12, 2016 - IMFnews

Garrett, McAuley Advised on Three Recent M&A Deals. As for the Names…

Meanwhile, many mortgage companies that specialize in production are posting strong profits…

September 9, 2016 - Inside FHA/VA Lending

Around the Industry

Tennessee Lender Agrees to $70 million Settlement to Resolve Alleged FHA Violations. Franklin American Mortgage of Franklin, TN, has agreed to pay the federal government $70 million to resolve allegations of failing to comply with FHA requirements. Specifically, the direct endorsement lender allegedly engaged in improper underwriting of FHA loans between Jan. 1, 2006, and Dec. 31, 2012, which later resulted in submission of claims and substantial losses to the FHA insurance fund. Franklin entered into a settlement agreement with the Department of Justice and the Department of Housing and Urban Development’s Inspector General. As part of the settlement, Franklin acknowledged “it engaged in certain conduct in connection with its origination, underwriting, and quality control of certain single-family residential mortgage loans insured by FHA.” The settlement was neither an admission of ...

September 9, 2016 - Inside FHA/VA Lending

CA Lender Exposed MMIF to Higher Risk, Ordered to Indemnify HUD

A California FHA lender could face monetary penalties totaling $242,828 for deficient mortgage underwriting and exposing the FHA insurance fund to increased risk of loss and fraud. A Department of Housing and Urban Development inspector general’s audit of Sun West Mortgage Co. of Cerritos, CA, also alleged unauthorized use of foreign staff in another country to “pre-underwrite” FHA loans. The audit was triggered by a complaint the IG Office received in November last year alleging that Sun West, an approved FHA lender since 1980, was not underwriting FHA loans properly. In addition, the complaint alleged that Sun West was having the loans pre-underwritten by a company in another country, in violation of HUD rules. Neither the company nor the country was identified in the audit report. The complaint further alleged that employees at Sun West shared user identification numbers for ...

September 9, 2016 - Inside FHA/VA Lending

VA Note Rate Lower than FHA, Private MIs; VA Refis Dominate

VA refinance mortgages accounted for the biggest share of total insured refis during the first six months of 2016, according to an Inside FHA/VA Lending analysis of agency refi data. On a monthly basis, VA refi totals exceeded refis with FHA and private mortgage insurance, peaking at $9.3 billion (58.1 percent of total VA originations) in April. Over the six-month period, the refi share of VA loans securitized by Ginnie Mae averaged 52.3 percent, compared to 29.6 percent for FHA and 21.0 percent for private MI loans securitized by Fannie Mae and Freddie Mac. In terms of total volume, however, FHA held a commanding lead, $123.0 billion, over private MIs ($102.7 billion) and VA ($84.8 billion). Interestingly, the average interest rate on VA refi loans, 3.6 percent, over the six-month period was lower than FHA’s and private MIs’ note rates of 3.9 percent and 4.0 percent, respectively. There is no clear ... [1 chart]

September 9, 2016 - Inside Nonconforming Markets

Ocwen Fails More Metrics Under Settlement

Ocwen Financial failed two metrics under the national mortgage settlement involving force-placed insurance, according to a report this week by the settlement’s monitor. The failures related to activity in the fourth quarter of 2015. The servicer had a 24.2 percent error rate on the timeliness of force-placed insurance notices, well above the 5.0 percent error rate allowed under the settlement. Ocwen said most of the errors were attributable to the implementation of a new ...

September 9, 2016 - Inside MBS & ABS

First Post-Crisis NPL MBS to Receive a Rating Pays Off, Investors in Senior Tranche Protected from Losses

The first rated post-crisis non-agency MBS backed by a significant share of nonperforming mortgages paid off recently, offering insights into how the deal performed and how investors fared. The $372.80 million Mortgage Fund IVc Trust 2015-RN1 was issued by Bayview Asset Management in October 2015. It received “A” ratings from Fitch Ratings and Morningstar. Fitch said it capped its rating “due to the idiosyncratic and adverse-selection risks associated with NPL collateral.” At issuance, 34.9 percent of the loans were nonperforming and 78.0 percent had been modified. The rating services said...

September 9, 2016 - Inside MBS & ABS

A Key Issue as Ginnie Nears Its Fourth Annual Summit: Liquidity, Liquidity and Liquidity

With Ginnie Mae MBS issuance at record levels these days, agency officials continue to worry about the growing proliferation of nonbanks in the sector and the fact that they control so much of the business now. But don’t get Ginnie Mae wrong. The government-backed MBS guarantor likes nonbanks – it just wishes they had more capital and liquidity. At least that’s the view of agency Senior Vice President of Issuer and Portfolio Management Michael Drayne. “We’re...

September 8, 2016 - Inside Mortgage Finance

Fair Housing Groups Accuse BofA of Continuing to Neglect Foreclosed Properties in Certain Communities

Fair housing groups continue to press allegations that Bank of America has neglected foreclosed homes and created eyesores in African-American and Latino communities in more than 200 cities. The National Fair Housing Alliance, along with nine local fair housing organizations, filed an amended federal complaint against BofA last week. In the complaint they added a number of neighborhoods in six additional cities where investigations revealed foreclosed homes that have not been properly maintained. This brings...

September 8, 2016 - IMFnews

Short Takes: Time to Bottom Fish in MSRs? / PennyMac and BofA Increase Deal Ceiling / Trade Groups Complain to the CFPB / More Ocwen Legal Headaches

More legal headaches for Ocwen? Looks that way...

September 8, 2016 - Inside Mortgage Finance

Lenders Urged to Loosen Underwriting as Performance Of Post-Crisis Originations Remains Exceptional

The near-zero default rate seen on mortgages originated in recent years combined with lenders’ extensive underwriting processes provide “clear evidence” that lenders should loosen underwriting standards, according to Laurie Goodman, director of the Urban Institute’s Housing Finance Policy Center. Wells Fargo originated more than 2.10 million conventional conforming mortgages between 2011 and the end of the first quarter of 2016. Only 4,082 of them became 60+ days past due in the first 24 months after origination, according to Moody’s Investors Service. Goodman said...

September 8, 2016 - Inside Mortgage Finance

Mortgage Servicing Sales Begin to Accelerate but a Tough Year Overall. Still, 4Q16 Could Mark a Turnaround

After a difficult year so far, sales of mortgage servicing rights are beginning to pick up a head of steam this fall with the hope that the fourth quarter could turn out be a barn-burner. According to interviews conducted by Inside Mortgage Finance this week, servicing advisors for the most part are feeling mildly optimistic about the final three months of the year, although they all admit the obvious: an unexpected drop in rates could spoil the party. But that may not...

September 8, 2016 - IMFnews

IMA Offers GSE Bulk Portfolio and MSR Flow Component

The largest chunk of collateral is located in Florida at 29.6 percent. Maryland is a distant second at 15.3 percent.

September 8, 2016 - IMFnews

Ocwen Faulted for Noncompliant Processes Involving Force-Placed Insurance; Hold on Foreclosures Removed

Ocwen had a 24.2 percent error rate on a metric involving the timeliness of force-placed insurance notices, well above the 5.0 percent error rate allowed under the settlement…

September 8, 2016 - IMFnews

UI: It’s Time for Lenders to Loosen Underwriting. (Delinquencies Over the Past Five Years are Just too Good.)

UI’s Laurie Goodman said borrowers who took out mortgages in the past five years are better at paying their mortgages than any other group of mortgage borrowers in history.

September 7, 2016 - IMFnews

Short Takes: A New Production Milestone for Citadel / Other Nonprime Funders / FBR Feels Quite Bullish About 2016 / A Focus on Mortgage-Centric Depositories / And the NPL Winners Are…

FBR & Co. raised its estimate on residential loan production for 2016: $1.90 trillion for 2016...


After the November elections, how long will it take for a new Congress and White House to pass GSE reform legislation?

I’m confident a bill will be passed the first year.
2 to 3 years. GSE reform is complicated.
Sadly it won’t happen in a Clinton or Trump first term.
Not in my lifetime.

vote to see results
Housing Pulse