The market for large packages of “legacy” mortgage servicing rights is ice cold these days, throwing a monkey wrench into the aggressive growth plans of Ocwen Financial, Walter Investment Management and Nationstar Mortgage. The reason is simple: regulatory scrutiny from the New York Department of Financial Services of Ocwen’s planned purchase of $39 billion in highly delinquent MSRs from Wells Fargo has dampened both auctions and sales. “Legacy packages are still out there,” said one buyer of mortgage receivables, “but I don’t see many of them and they’re not very large.” He added...
The CFPB's Steve Antonakes revealed that the agency did not start training many of its examiners about the new rules until the first half of this year.
Home-equity lending fell off sharply during the first quarter of 2014, but the sector may be poised for a rebound in the months ahead. Home-equity originations totaled an estimated $13 billion during the first three months of this year, down 18.8 percent from the previous quarter. That was up 8.3 percent from the first quarter of 2013, and a handful of lenders reported increased home-equity activity in early 2014. Most closed-end seconds and home-equity lines of credit are retained...[Includes three data charts]
But the CFPB's Richard Cordray said people are misinterpreting the formal Federal Register notice which unveiled the expansive scope of the database project.
However, two of the largest home-equity lenders – Bank of America and Chase – both reported modest increases in production during the first quarter, up 3.1 percent and 2.5 percent, respectively.
“Right now there’s a large discrepancy between what the buyer wants to pay and what the seller wants to sell at,” said Chuck Klein, managing partner in Mortgage Banking Solutions.
One competitor to Prospect described Mike Williams as a “great technical guy.” He added that having Prospect go public is “the next step” in Sterling’s exit strategy.”
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