Servicing employment has been under pressure the past few years as loan processors such as Ocwen Financial, Nationstar Mortgage and others move to offshore as many back office workers as possible.
Originations of jumbo mortgages continued to increase in the second quarter of 2015 and lenders are chasing volume by lowering interest rates and loosening underwriting standards. Some $93.0 billion in jumbos were originated in the second quarter, according to estimates by Inside Nonconforming Markets. Halfway through 2015, originations totaled an estimated $163.0 billion, up 58.3 percent compared with the mid-point of 2014. Banks continue to ... [Includes one data chart]
Ocwen Financial looks to be close to completing its downsizing through servicing sales that will leave its non-agency mortgage portfolio mostly intact. The nonbank is also working toward being able to acquire servicing again and has plans to boost originations. Ocwen handled servicing on $154.79 billion in non-agency mortgages as of the end of the second quarter of 2015, including subservicing. The unpaid principal balance of non-agency mortgages ...
The largest servicers participating in the non-agency portion of the Home Affordable Modification Program will be required to offer streamlined HAMP mods beginning in 2016, according to a directive from the Treasury Department. The Streamline HAMP offering will allow borrowers to qualify for mods without full completion of a HAMP application, without income verification and without the front-end debt-to-income ratio limit of 31 percent for typical HAMP mods ...
Flagstar Bancorp held a portfolio of $1.56 billion in interest-only mortgages at the end of 2011, with payments for many of the borrowers set to double in the coming years. A year ago, officials at the bank were touting its efforts to work with borrowers to limit the payment shock that kicks in when IOs reset and they have to start repaying principal. While those efforts continue, Flagstar has also sold more than half of its IO holdings, seeing strong demand from ...
Fitch Ratings updated its criteria for estimating losses on mortgages in non-agency mortgage-backed securities this week. The main change for jumbo MBS involves the treatment of retail originations by lenders that have not been reviewed by Fitch. Previously, retail originations from such lenders would not receive positive consideration in the calculation for the probability of default. The rating service will now apply the retail benefit to ... [Includes three briefs]
Sellers saw a modest increase in VA loans delivered to Ginnie Mae in the second quarter of 2015, most of which were streamline refinance loans, but FHA definitely took the cake, according to an Inside FHA/VA Lending analysis of agency data. Approximately $39.1 billion in VA purchase and refi loans were placed in Ginnie Mae pools in the second quarter, up 11.8 percent from the prior quarter. Of that amount, $20.9 billion were VA refinances, up 2.1 percent from the first quarter. Some 52 percent of the VA refis were originated in-house while correspondents accounted for 30.7 percent. Brokers brought in 17.3 percent of the securitized VA refi loans. VA purchase loans underlie an estimated $18.2 billion in Ginnie mortgage-backed securities in the second quarter, 48.4 percent of them retail. That number was up 25.5 percent from the previous quarter. VA loan correspondents were busy as well, accounting for ... [ 2 charts ]
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