The steamship that is the nonbank share of the mortgage servicing market showed no signs of changing course in the early months of 2018, a new Inside Mortgage Finance analysis reveals. [Includes two charts.]
Midwest banking giant MB Financial shocked the mortgage market late last week with its decision to exit national lending, citing tight profit margins, lower originations and stiff competition. Now comes the big question: Who’s next?
Not only are several mortgage banking firms exploring sale opportunities these days, but dozens of vendors that serve the industry either have changed hands or are up for grabs as well – with more deals expected in the months ahead.
There are some in the industry who believe the entire subservicing sector is far behind in technology and customer service – and is ripe for a technology disruption of a major kind.
The Department of Veterans Affairs has withdrawn a recent directive to provide lender-certification disclosures as part of early disclosure requirements for Interest Rate Reduction Refinance Loans (IRRRLs).
The Consumer Federation of America agreed that the FICO score used by Fannie and Freddie is outdated and amounts to a monopoly on scoring. It supports the lender-choice option, but with constraints. The CFA recommended that lenders be required to pick a provider for a minimum period and said the models used by the two government-sponsored enterprises should align with one another.
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