In general, it hasn’t been a pretty picture this year when it comes to the sale of “bulk” mortgage servicing rights, especially Ginnie Mae receivables. According to figures compiled by affiliate publication Inside Mortgage Trends, bulk MSR transfers (one barometer of sales) increased 20.6 percent in the second quarter compared to the first with roughly $42.9 billion of Fannie Mae, Freddie Mac and Ginnie product changing hands. The third quarter is expected...

Freddie Mac’s newly launched front-end credit-risk transfer pilot doesn’t appear to be the expansion of credit-risk transfers that mortgage bankers have been clamoring for. For starters, the deep MI pilot won’t result in lower guarantee fees, which is what the Mortgage Bankers Association has been seeking. And it’s not the deep-cover primary insurance that private MIs would like to write. Under the Freddie Mac Deep MI pilot, the government-sponsored enterprise is purchasing...

The FHA has issued long-anticipated rules for approving condominium developments, including the reinstatement of spot approvals and mandatory recertification of condo approvals every three years rather than the current two-year requirement. The rules are designed to make it easier for condo projects to qualify for FHA financing and for borrowers to purchase affordable single-family units with a low 3.5 percent downpayment. The comment period ends on Nov. 28, 2016. The Department of Housing and Urban Development eliminated...

Mortgage lenders would be able to extend more credit to traditionally underserved borrowers with greater confidence and sell those loans to Fannie Mae and Freddie Mac, according to proponents of legislation pending on Capitol Hill. H.R. 4211, the “Credit Score Competition Act of 2015,” introduced by Rep. Ed Royce, R-CA, would allow Fannie and Freddie to consider alternative scoring models when determining whether to purchase a residential mortgage. Further, the Federal Housing Finance Agency would be given...

Maybe calling a delinquent borrower 12 times a day is too much...

A task force convened by the Mortgage Bankers Association proposed universal principles for loan modification programs across government guarantors, the government-sponsored enterprises and perhaps non-agency mortgages. The “One Modification” standards published late last week aim to provide servicers with a “cohesive framework” to complete loan mods when the Home Affordable Modification Program largely ends after this year. “MBA’s task force recognizes...

Atlantic Bay Mortgage Group recently started offering its loan originators a unique option in terms of compensation: a share of the servicing fee. More than 90 percent of loan originator compensation plans are based on an LO’s volume, according to surveys conducted by Stratmor Group. Atlantic Bay’s Progressive Earnings Plan allows LOs to earn an annuity stream of income from mortgages when the lender retains the servicing. Rebecca Chaney, a senior executive vice president of legal affairs at Atlantic Bay, likened...

The motivations of buyers and sellers in the mortgage servicing market appear to be at odds, and sellers are hoping for some sort of buyer conversion to light up the market and get more deals. At the Ginnie Mae Summit last week, panelist Michael Ehrlich, senior mortgage specialist at Thomson Reuters, indicated that sellers are itching to see more mortgage servicing rights deals but there are not too many buyers lining up. “The demand from sellers to sell is...

Meanwhile, other lenders said they are hearing reports of correspondent originators slowing down the sale of closed loans to Wells.

However, Georgetown University professor Adam Levitin is challenging the findings of his DC-area colleagues.