Although most of the mortgage-servicing sales in recent months have been flow transactions of new production, more banks – especially mid-tier institutions – are expected to unload servicing in response to regulatory constraints, according to experts at last week’s Mortgage Bankers Association annual convention in Las Vegas. Many banks continue to focus on capital risk management and serving their core customers, said David Hisey, executive vice president of Nationstar Mortgage, during a panel session on servicing. Many servicing transfers are driven by a desire to deal with one or both of those issues, he added. Most mortgage servicing rights transfers now are...
Late this week, Ocwen Financial Corp. announced that it has set aside $100 million for a possible regulatory settlement with the New York Department of Financial Services, a move that couldn’t come too soon for the troubled “high-touch” servicer. But the company also cautioned that a settlement with the NYDFS is hardly a sure thing. More-over, some Ocwen watchers believe a deal with New York could spur other state regulators to take action against the company. One consultant who has done work for Ocwen told...
The Federal Housing Finance Agency and the Obama administration could secure their legacies during the next two years by releasing Fannie Mae and Freddie Mac from conservatorship as two stable and smaller government-sponsored enterprises, say some experts. Speaking during a conference call sponsored by GSE shareholder rights group Investors Unite, Clifford Rossi – founder and principal at Chesapeake Risk Advisors – reiterated his call for an administrative solution that would recapitalize the GSEs and bring them out of conservatorship under strict conditions. “Knowing that it’s going to be an uphill battle to get any sort of resolution from Congress, it could be...
Production of rural housing loans with a Department of Agriculture guaranty is expected to end 2014 far below the record volume originated last year, according to agency estimates. USDA Section 502 guaranteed homeownership obligations in fiscal 2014 totaled $19.1 billion, down from last year’s $22.4 billion, according to data recently disclosed by the agency. Texas led...[Includes one data chart]
Ocwen Financial has a huge mismatch between the size of its $400 billion servicing portfolio and its new originations. Then again, its MSRs are running off...
Former FHFA Acting Director Edward DeMarco wanted to shrink the multifamily programs of Fannie and Freddie, but that initiative has been placed on the back burner.
The SIGTARP said that since the beginning of 2013 it has received complaints from “nearly 100” borrowers regarding issues with servicing transfers, and that 84 of the calls came in 2014.
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