While new regulations have been costly for servicers to implement, they have helped improve borrower satisfaction, according to J.D. Power’s latest primary servicer satisfaction study. “The fact that satisfaction continues to increase seems to indicate that changes being made in response to these new regulations are having a positive impact on the experience of customers,” said Craig Martin, director of investment services at J.D. Power. He cited regulations from the Consumer Financial Protection Bureau ...
Negative home equity is not an important barrier for a homeowner to decide to move elsewhere for a better job, although underwater homeowners are probably more likely to move than borrowers with equity in their homes, according to researchers at the Federal Reserve Bank of Cleveland. The study presents evidence debunking the theory that homes with underwater mortgages deter unemployed people from moving to get new jobs. The “lock-in” theory holds that unemployed people with negative equity could ...
Wells Fargo increased its residential servicing portfolio by a meager 2 percent in the second quarter but marked up the asset value of its mortgage servicing rights by a mouth-watering 18 percent, a clear sign that it feels comfortable about both improving delinquencies and higher interest rates. The nation’s largest lender/servicer was hardly alone among the nation’s megabanks, all of which reported higher market values on MSR remaining principal balances that were mostly unchanged. Bank of America reported...
Mortgage company owners hoping to go public or tap the capital markets for another round of equity financing may have to temper their expectations in the new interest rate environment. But that doesn’t mean initial public offerings are out of favor with investors. According to industry experts, it’s a matter of expectations. “Some people are saying these deals won’t happen now,” said Paul Miller, a top analyst at FBR Capital Markets. “But I’m not in that camp. Any deal that is priced correctly will sell.” Miller told...
The Consumer Financial Protection Bureau may have over-reached by extending its new bulls-eyes on debt collectors to mortgage servicers, according to some top mortgage industry attorneys. The CFPB last week warned all companies under its jurisdiction that they will be held accountable for unlawful conduct in collecting a consumer’s debts, citing its authority under the Dodd‐Frank Act, which prohibits “unfair, deceptive, or abusive” acts or practices (UDAAPs). Attorney Alan Kaplinsky, a practice leader in the Philadelphia office of the Ballard Spahr law firm, said it’s particularly significant that the bulletins not only address the conduct of debt collectors and debt buyers, but also are directed at creditors and servicers. CFPB Bulletin 2013‐07 makes...
RSS