Nonbank institutions continued to expand their footprint in agency mortgage servicing rights last year, thanks to both their growing share of new originations and a hefty dose of MSR transfers, according to a new Inside Mortgage Finance ranking and analysis. At the end of 2015, some $5.931 trillion of home mortgages were connected to mortgage-backed securities issued by Fannie Mae, Freddie Mac and Ginnie Mae. That was up a modest 0.8 percent from the same period back in 2014 and included a small 0.3 percent increase from the third to the fourth quarter of last year. These figures are based on agency MBS disclosures that typically vary slightly from aggregate data released by the three agencies. Nonbanks accounted...[Includes two data tables]
The servicing auction market experienced a flurry of deals at yearend 2015, but investors for the most part have been more cautious about what they’re willing to pay for mortgage servicing rights, given some of the large markdowns that damaged second- and third-quarter earnings. “A lot of investors got hurt by buying during the first half of last year,” said one MSR investor who spoke under the condition his name not be used. “A few of them aren’t bidding anymore.” During the first half of 2015, MSR buyers were willing...
Part of the $5.1 billion settlement amount Goldman Sachs agreed to in principle with the federal government last week will be used to provide relief for homeowners who owe more than the current appraised value of their homes. The agreement would resolve an ongoing investigation by the Residential Mortgage-Backed Securities Working Group of the U.S. Financial Fraud Enforcement Task Force, which President Obama established in 2009 to pursue those who played a role in causing the financial crisis. The tentative agreement would resolve...
The number of foreclosed properties and length of time it takes to foreclose is trending downward, but average time to foreclose is taking nearly three years or more in some states. RealtyTrac recently released its 2015 foreclosure report and noted that it took more than 1,000 days to foreclose in six states in the fourth quarter, with New Jersey leading the way at 1,180 days. That number is...
For some servicers, including Ocwen Financial, the math of outsourcing is simple: pay back-office workers the equivalent of $2 an hour when their U.S. counterparts can earn at least five times that.
Ocwen, in particular, will need to tell investors exactly how they plan to become a top-10 originator, something that seems like a long shot right now...
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