Communication is key when mortgage companies face financial difficulties and potential breaches of warehouse financing covenants. Warehouse providers are looking for profitability plans for nonbanks.

The servicing side of residential finance, in particular processing fees and MSR sales, has saved many a lender from the abyss during the correction of the past year. But it hasn’t been a complete joyride. Rising personnel costs and technology expenditures are a concern.

Commercial banks continue to look sideways at the residential lending business, wondering why they should be in it at all. Some are getting out while others are scaling back significantly.

Servicers of FHA-insured loans have until April 30 to implement the revised loss-mitigation program.

In November, the former employees filed a class action accusing AmeriSave of fraud, deception and breach of contract. The lawsuit is on hold pending arbitration.

Michael Hild’s 44-month prison sentence is much shorter than the 15 years recommended by prosecutors.

Bids for MSRs are declining, prompting worries among some sellers. Those holding servicing also face the possibility of an increase in delinquencies and advancing responsibilities.

The halcyon days of sizeable MSR markups are in the rearview mirror, causing servicing owners to ponder their options. Some nonbanks continue to actively sell servicing rights while others are being told by their advisors to hold their cards.

The debt prices of select nonbank lenders have improved in recent weeks, but remain in the speculative bucket. As spring approaches, originators and their investors are hoping for the best. What else can they do?

On a quarterly basis, originations will bottom out in the first quarter, according to projections by the Mortgage Bankers Association. Still, it will take a little longer for profitability to improve.