Unemployment and negative equity have a large influence on a household’s decision to default on their mortgage, but a study by a team of government economists and academics has found that most financially distressed households manage to keep current on their loan. Another surprising finding by the study “Can’t Pay or Won’t Pay? Unemployment, Negative Equity, and Strategic Default” is that strategic defaulters are few and rare despite the publicity they get ...
Ginnie Mae edged past Freddie Mac in servicing outstanding on single-family mortgages tied to mortgage-backed securities during the second quarter of 2016, according to a new ranking and analysis by Inside Mortgage Finance. MBS disclosure reports show the supply of Ginnie mortgage servicing rights grew 2.1 percent during the second quarter, climbing to $1.576 trillion, excluding multifamily and reverse mortgage MBS. The supply of Freddie single-family servicing edged up just 0.4 percent from March, reaching $1.558 trillion and slipping to third in the agency MSR market. Fannie Mae single-family MSR servicing declined...[Includes two data tables]
The Consumer Financial Protection Bureau any day now could release its long-awaited regulation finalizing its proposed amendments to its 2013 mortgage servicing rules, posing yet another compliance challenge and requiring one more round of systems upgrades from the industry as a result. According to a consensus of industry experts, the two biggest subject areas have to do with bankruptcy proceedings and successors in interest. “On the eve of the servicing rules taking effect, the bureau made...
A recent ruling by the Washington State Supreme Court goes against servicers’ practice of changing the lock on a property before a foreclosure. While such practices are generally allowed under mortgage contracts and have been approved by other states, the Washington state court ruling is favorable to 3,600 borrowers in a class-action lawsuit and could cause further issues for servicers. Laura Jordan v. Nationstar Mortgage centered on Nationstar’s actions after the borrower defaulted on her mortgage. A vendor acting on behalf of Nationstar inspected the property, deemed it to be vacant and changed the lock on the front door. The vendor also left a lockbox on the door with the key to the new lock and the borrower was provided access to the key. Jordan represents...
The FHA this week clarified its policy on insuring mortgages with PACE (Property Assessed Clean Energy) senior tax liens to make it easier for borrowers to obtain FHA financing for such mortgages, but the mortgage and real estate industries continue to have concerns. The new guidelines address state programs where the PACE obligation is treated like a property tax with priority over an FHA lien. The program provides financing for home-energy improvements and water conservation, and is repaid through an assessment added to the property’s tax bill. The guidelines are designed...
The bank’s residential whole loan portfolio (based on average balances) totaled $275.85 billion at quarter’s end compared to $266.02 billion a year ago.
Progress Residential is preparing to issue a new single-family rental security that will lead to the payoff of a $473.2 million deal issued by the firm in 2014. The payoff will mark the first time a single-family rental security has prepaid, according to industry analysts. The planned Progress 2016-SFR1 is a single-borrower single-family rental securitization that was initially planned to be backed by a $657.27 million loan secured by mortgages on 4,068 rental homes, according to ratings by Kroll Bond Rating Agency, Moody’s Investors Service and Morningstar Credit Ratings. A portion of the proceeds will fund the prepayment of Progress 2014-SFR1. The deal issued...
We don’t know who will lead the new administration, though for Ginnie’s sake, it’s likely that both Donald Trump and Hillary Clinton won’t mess with the agency or its charter. Right?
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