Freddie Default and Work Reporting Changes. Freddie Mac announced last week that servicers are not able to directly change the reporting of a third-party sale to an REO status without submitting a rollback request. Freddie said it also updated its foreclosure sale reporting error codes to more accurately reflect today’s housing market and align it with servicer’s needs. Fannie Ends 2015 with $42.3B in Multifamily Loans. Fannie Mae said that it provided $42.3 billion in financing to the multifamily market in 2015 to support 569,000 units of multifamily housing, of which more than 90 percent of the units financed support affordable or workforce housing. Approximately 99 percent of the multifamily loans Fannie financed last year were securitized...
Fannie Mae and Freddie Mac this week announced the final piece of a multiyear process to relieve seller anxiety about potential buybacks, an independent dispute-resolution process for the most difficult to resolve repurchase demands. As a last resort, the new IDR process may not see that much activity, especially since seller repurchases of government-sponsored enterprise mortgages have been declining sharply. For a buyback dispute to get to a final determination by a third-party arbitrator, it will have to go through three normal steps in the buyback process. The IDR process began...[Includes one data table]
But there is this caveat: the steady growth of the top 50 servicers is in bold contrast to the industry’s top tier. Wells Fargo, Chase and Bank of America all reported shrinkage in their servicing businesses in 2015.
“When is enough, enough? Paying for past sins, sometimes before they were sins. I’m not speaking specifically about Wells Fargo, but in general.” – Marc Savitt, NAIHP president.
The ongoing decline in interest rates is wreaking havoc on the sale of “bulk” mortgage servicing portfolios, causing investors to pull back on pricing, and sending some bidders to the exits, at least for a little while. Servicing advisors who play in the space confirmed to Inside Mortgage Finance that pricing isn’t what it used to be, and is off peaks seen a year ago when bids – in retrospect – were too aggressive and later resulted in write-downs. Mark Garland, president of MountainView Servicing Group, Denver, admitted...
Steady growth over the course of 2015 may have taken the long-suffering mortgage servicing market close to the $10 trillion mark at the end of the year, according to a new analysis and ranking by Inside Mortgage Finance. The top 50 companies at 2015 serviced a combined $7.326 trillion in home mortgages, a slight 0.3 percent increase from the end of the third quarter. If the rest of the industry followed their lead, the supply of servicing outstanding rose to $9.982 trillion by the end of December. Based on trends during the first nine months of 2015, as reported by the Federal Reserve, the supply of home loan debt outstanding may have trickled...[Includes one data table]
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