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Home » Topics » Inside Mortgage Finance » Servicing

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3Q16 Brings Relief from MSR Writedowns

October 28, 2016
So far, the third quarter has seen several publicly traded commercial banks mark up the asset value of their residential mortgage servicing rights, but in general, the increases have been mild, to say the least. The only bank that reported a sizeable increase was Bank of America, which valued its MSR portfolio at 60 basis points at Sept. 30, an increase of 9 bps from mid-year. Of the reporting banks, BofA’s improvement has been the largest by far. BofA’s megabank competitor ...
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Ocwen Finally Earns a Profit; Stock Soars; Questions Remain

October 27, 2016
Paul Muolo and Brandon Ivey
Ocwen funded $1.2 billion in “forward” mortgages and an additional $213 million of reverse loans. In 2Q16 it funded $1.32 billion.
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Short Takes: Will Ocwen See $60 a Share Again? / Challenges Remain / Ocwen’s Shrinking Employee Base / LPMI Competition Reduced? / Alterra Hires Former Prospect Executive Murray

October 27, 2016
Paul Muolo and Brandon Ivey
Ocwen had an average of 7,484 employees in the third quarter of 2016, down 12.3 percent from 3Q15...
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Will Ginnie’s New ‘Acknowledgement Agreement’ Bring Relief to Nonbanks, Financiers and the Agency Itself?

October 27, 2016
Late this week or early next, Ginnie Mae is expected to release a new and improved acknowledgement agreement, a move intended to allow nonbanks to borrow more easily against the asset value of their mortgage servicing rights. But the big question remains: Will the agency’s tweaks have much of an impact on liquidity? There is...
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Missing in Action: Mortgage Banking M&A

October 26, 2016
Paul Muolo
There has yet to be a “large” mortgage M&A deal announced this year other than the pending sale of EverBank to TIAA.
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A Big (Sort of) Mortgage M&A Deal – But in the Commercial Space

October 26, 2016
Paul Muolo
On average, the California-based GEMBC facilitates roughly $800 million of commercial mortgages a year.
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Surprise: Ocwen Earns a Profit for 3Q16, but Revenue Slips While Company Cites Unpaid Settlements

October 26, 2016
Paul Muolo and Brandon Ivey
Ocwen, which in the past has been sanctioned by regulators for some of it servicing practices, also disclosed $10.0 million of additional reserves for a potential California regulatory settlement and $7.0 million of incremental reserves for a previously disclosed letter dating issue.
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An Almost 10 Percent Gain in Originations for Flagstar

October 25, 2016
Paul Muolo
At Flagstar, refinances accounted for 57.6 percent of originations compared to 54.2 percent in the second quarter.
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A Milestone: Nonbanks Now Control 51 Percent-Plus of Ginnie Mae Servicing Market

October 25, 2016
John Bancroft
But there is one caveat: The VA sector is one business from which banks are not yet running away from…
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Incenter Offers Flow and Bulk Deals That Could Top $3 Billion

October 25, 2016
Paul Muolo
With rates creeping up, more MSR packages should hit the auction block…
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