The deal includes a provision allowing Bayview to sell loans out of the MBS one year from now.

One source, angered by Cordray's comments, said, "No, Mr. Director. Those concerns have eliminated non-QM loans, which come with protection against frivolous lawsuits. That’s why no one except a perfect borrower can get a loan…”

With loan quality and real estate values continuing their rapid improvement over the past two years, the market value of “high-touch” servicers continues to head south and a handful of such firms are pondering sales. According to advisors that ply their trade in the mergers and acquisitions circuit, at the top of the “for sale” list is the IBM-owned Seterus, which at one point had at least $40 billion in problem Fannie Mae-related loans on its system. But will IBM – which also has its hands in the origination technology arena – finally pull...

Officials at the Consumer Financial Protection Bureau and the Federal Reserve have gone on the offensive to refute claims from lenders and their advocates regarding the ability-to-repay rule. At a hearing this week by the House Financial Services Committee, CFPB Director Richard Cordray noted that he recently met with the CEOs of the top 40 mortgage companies as part of an event hosted by the Mortgage Bankers Association. Cordray said the CEOs revealed that none of the lenders have faced lawsuits alleging violations of standards for qualified mortgages. “All this foaming at the mouth about legal liability did not...[Includes one data table]

Ginnie Mae executive Michael Drayne raised concerns about the growing reliance on subservicers and whether there’s enough capacity at these companies...

David Lykken, managing partner of Transformational Mortgage Solutions, said he welcomes PIMCO’s investment, believing that it’s a huge positive for the industry.

The congressman said the decision to sell thousands of loans at a time at sharp discounts to the highest bidder “continues to enrich Wall Street at the expense of neighborhoods and community-based organizations.”

Or as Marc Savitt of the National Association of Independent Housing Professionals put it: “Nothing will pass as long as Obama still has a pen…”

While nonbanks have taken a much bigger share of the servicing market, the top-ranked subservicer is Cenlar, a New Jersey-based savings bank.

Rushmore is licensed in all 50 states, Washington DC, and Puerto Rico. It has offices in Irvine, Dallas and San Juan, PR, where it services roughly $1 billion in assets...