The evolutionary flow of the slow-growing agency mortgage servicing market continued in the first quarter of 2016 as many of the big names peeled back and fast-growers kept growing, according to a new analysis and ranking by Inside Mortgage Finance. Overall, the agency MSR space expanded by a meager 0.2 percent during the first three months of 2016. Slow growth is typical of heavier refinance periods, and refi business at Fannie Mae, Freddie Mac and Ginnie Mae was up a combined 1.9 percent from the fourth quarter. Although purchase mortgages accounted for half of the first-quarter market, the volume of such loans securitized by the three agencies was down 12.6 percent from the previous period. Ginnie continued...[Includes two data tables]
When interest rates take an unexpected dive – as they did in the first quarter – it can wreak havoc on servicing assets as banks and nonbanks try to calculate a fair market value for their residential receivables. According to interviews conducted by Inside Mortgage Finance and based on a compilation of values by Piper Jaffray, certain megabanks assigned some of the lowest values in years to their portfolios during the first quarter of this year. Bank of America, for instance, which usually ranks third among all servicers, assigned...[Includes one data table]
The new principal-reduction option for Fannie Mae and Freddie Mac loan modifications could end up affecting only about 6,000 delinquent borrowers, according to an Urban Institute analysis. The Federal Housing Finance Agency late last week announced that the government-sponsored enterprises would do principal writedowns for a small population of distressed borrowers. The program is limited to loans that were seriously delinquent as of March 31, had loan amounts of less than $250,000 and unpaid debt, including arrearages, exceeding 115 percent of the current market value of the home. The FHFA estimated...
Wells Fargo was the subject of more mortgage complaints than any other player in the sector. Then again, Wells is both the largest lender and servicer.
The American Bankers Association said it “strongly supports the principle of accountability and balance, and commends the sponsor of this measure for working to improve the accountability of the bureau.”
MBA chief David Stevens told Inside The GSEs that given the recent growth in the nonbank servicing sector, it’s appropriate for regulatory authorities to ensure these institutions are effectively supervised.
RSS