Freddie Mac could save millions of dollars a year in faulty reimbursement payouts to its servicers by investing additional resources in a wider selection of reviews, according to an audit issued last week by the Federal Housing Finance Agency’s Office of Inspector General. In 2013, Freddie reimbursed 460 of its servicers $1.4 billion but identified and denied $126 million in what the IG calls “erroneous” claims. The IG noted that Freddie’s top 10 servicers, relative to total reimbursements, accounted for 87 percent of all reimbursements made by Freddie in 2013. Servicers of Freddie and Fannie Mae loans often maintain...
The Consumer Financial Protection Bureau provided fresh guidance on mortgage servicing transfers last month, but lenders say there are still plenty of unresolved issues. In August, the CFPB put out an updated compliance bulletin on mortgage servicing transfers that augments existing guidance from last year to reflect the agency’s complex mortgage servicing regulation, as well as its supervisory and enforcement activities during the last year and a half. Bob Davis, head of mortgage markets, financial management and public policy at the American Bankers Association, said...
The sale of Shelter is one of the largest mortgage M&A deals of the past few months and could mark the beginning of an active second half of industry consolidation.
“The new guys are quickly gaining on the traditional players,” said Ginnie president Ted Tozer. “Some have grown from zero to $5 billion to $10 billion overnight. We’re concerned about their infrastructure and capital.”
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