In the second quarter, sharply lower interest rates continued to wreak havoc on the asset value of mortgage servicing rights, causing financial damage at banks and nonbanks alike, according to interviews and analysis by Inside Mortgage Finance. At June 30, Wells Fargo valued its residential MSR portfolio at 68 basis points, down from 77 bps a year ago. Bank of America cut its capitalized MSR from 78 bps in June 2015 to 51 bps at the midway point this year. And JPMorgan Chase lowered its MSR ratio to 81 bps at the end of June, compared to 105 bps a year ago. As Keefe Bruyette & Woods put it, “MSR interest rate marks were...
Mortgage industry trade groups filed a brief last week asking the Supreme Court of the United States to take up a case involving fees charged by Connecticut aimed at mortgage recordings by Mortgage Electronic Registration Systems. In February, Connecticut’s Supreme Court upheld fees imposed by the state in 2013 that tripled charges for mortgages recorded with MERS compared with non-MERS recording fees in the case of MERSCORP Holdings v. Dannel Malloy. In the new brief, industry participants caution...
Banks, thrifts and credit unions still accounted for 66.0 percent of the $7.206 trillion in single-family mortgages serviced by the top 50 companies, Inside Mortgage Finance found.
The company has been diversifying heavily into subservicing contracts and over the past year has struck outsourcing deals with USAA and Seneca Mortgage Servicing.
Approximately 30 percent of survey respondents aged 18 to 29 said they would put off buying a house because of the burden of student loan debt, according to study done last year by Black Knight Financial services.
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