Purchasers of distressed mortgages or residuals seeking to service their own portfolio but not wanting to build or buy a servicing platform may take advantage of Ocwen Financial’s new product, PlatformPlus. PlatformPlus is a turnkey servicing operation specially designed for investors in nonperforming mortgages or residuals of non-agency securities that want to get more value from their loans. In discussions with hedge funds and other investors in distressed assets, Ocwen Financial found a desire among these entities for special servicing technology and expertise without having to ...

GMAC Mortgage is making “solid progress” in responding to strategic opportunities and expanding its outreach to borrowers – and real estate agents – via the virtual sales network it launched in the spring of 2010. However, it’s only half way toward meeting its year-end 2010 goal of bolstering its sales team to 200 associates. “We’ve made solid progress in this,” said Jim Olecki, spokesman for Ally Financial, the parent company. “It’s doing what we wanted it to do, which is serving the Realtor community and attracting new home buyers to ...

Non-agency mortgage-backed securities continue to affect the financial performance of several Federal Home Loan Banks, according to the Federal Housing Finance Agency’s annual report to Congress.In aggregate, the FHLBanks hold 1,622 non-agency MBS with a par value of $46.9 billion. Although all of the non-agency MBS had triple-A ratings when purchased, the portfolios are generally of poor quality credit, said the FHFA.

Mortgage banking income was hit hard by rising expenses and declining production during the first quarter of this year, with more companies failing to generate a net profit from their business, according the Mortgage Bankers Association’s most recent performance report. The average firm participating in the MBA survey reported $617,000 in pretax income during the first quarter, down 60 percent from the fourth quarter’s average $1.56 million. Only 63 percent of lenders reported a net profit for the first quarter, down from 84 percent in the final three months of 2010. Mortgage bankers reported ...

Earnings reports from nine mortgage banking operations suggest that servicing operations played a major part in the industry’s sharp downturn in profitability during the first quarter. But a new Inside Mortgage Trends analysis also identifies weakness in loan production operations and declining origination volume as key factors. The nine lenders, including the three largest firms and seven of the top 10 originators, posted a combined $1.726 billion in net servicing income during the first quarter of this year. That was down ... [includes one data chart]

While overall governance of the 12 Federal Home Loan Banks passed muster in 2010, the Federal Housing Finance Agency’s annual examination identified a number of “shortcomings” that should be addressed during the coming year.“In 2010, FHFA has a concern about the level of experience and expertise of certain executives and executive turnover at some FHLBanks,” said the FHFA’s annual report to Congress. “While board and management oversight generally improved during 2010 at most FHLBanks, there remains room for improvement at some FHLBanks.”

The Federal Housing Finance Agency is working on the double to come up with written policies and procedures for its consumer complaints process, as well as a thorough assessment of the staff and resources needed to implement the new functions by the end of the year following a very public rebuke by the Finance Agency’s watchdog.In a report released this week, the Office of the Inspector General of the FHFA said its audit of Freddie Mac and Fannie Mae’s regulator found the Finance Agency’s oversight of the receipt, processing and disposition of consumer complaints to be a “significant deficiency” in its internal controls.

Mortgage servicers are being squeezed by inadequate compensation, intense scrutiny and a surge of new regulation, but Fannie Mae and the Treasury Department say they are trying to even the score. Servicers no longer see their job as financially rewarding and have been leaving their positions accordingly, claimed Diane Pendley, managing director of Fitch Ratings, during a panel session at this week’s annual meeting of the American Securitization Forum. “We’re seeing them fighting – they’re coming out swinging, just really to get some balance,” echoed Gwen Muse-Evans, vice president and chief risk officer at Fannie Mae. “There’s definitely a perception that...

It was a bad litigation week for MBS issuers after a federal regulator and a federal judge filed lawsuits and certified a class action, respectively, on behalf of institutional investors that lost billions of dollars when the collateral underlying the securities dropped in value. On June 20, the National Credit Union Administration, acting as liquidating agent for five failed credit unions, filed lawsuits against JPMorgan Securities and RBS Securities for allegedly misrepresenting the risks of MBS investments and systematically disregarding underwriting guidelines. The NCUA is seeking to recover more than $800 billion in MBS losses that led to...

Although the dollar volume of MBS and ABS deals rated by Standard & Poor’s in the first quarter was down from the same period in 2010, the company ranked as the top rating service in both markets, according to a new analysis by Inside MBS & ABS. S&P rated $5.80 billion of non-agency MBS during the first quarter, down 61 percent from its volume in early 2010. But that amounted to 66 percent of total issuance in the market – more than any of its competitors. Overall non-agency MBS issuance was down 50 percent from year-ago levels. Moody’s Investor Services ranked second with $4.5 billion in rated MBS, just over half of the market in... [Includes one data chart]