As lenders increasingly turn to subservicers to handle various functions, up-front due diligence and ongoing monitoring are necessary to help increase originations and maximize return on investment, according to Kurt Blohm, a senior manager at Richey May & Co. Blohm is the leader of the consulting firm’s subservicer oversight review service and he recently authored a white paper on selection and oversight responsibilities for holders of mortgage servicing rights ...

Plenty of attention continues to be paid to online mortgage shopping and to getting the e-mortgage off the ground in hopes of revolutionizing the entire home loan origination experience for the consumer. But if the potential of digitalization and related technologies is to be fully realized, the back office needs to be addressed, and soon; otherwise lenders run the risk of creating massive backlogs because of the resultant choke points. On the first point, Nate Longfellow ...

Newfi Lending, an online residential mortgage lender, is looking forward to a big origination year with the consolidation of its product lines under the “Newfi Lending” brand. A multi-channel lender, the Emeryville, CA-based lender previously operated as Nexera Holdings under two national brands – Newfi for its consumer-direct retail business and Bluestream Lending for third-party originations. In conjunction with the change, Newfi’s wholesale-broker business will now be ...

As interest rates increase, nonbanks’ holdings of mortgage servicing rights will help offset losses tied to lower originations, according to analysts at S&P Global Ratings. “We expect market trends affecting nonbank mortgage companies to change dramatically now that rising interest rates are driving MSR valuations higher,” the rating service said in a recent report. Freddie Mac and the Mortgage Bankers Association separately forecast that the average interest rate ...

The nonprime residential market is getting more attention as the big product categories hit the skids.

Transfers of servicing from large servicers to smaller firms can help improve loss mitigation performance while introducing new risks to the system, according to industry analysts. Smaller servicers tend to be more “nimble” than large servicers and are better suited to handle distressed mortgages, according to analysts at Moody’s Investors Service. The rating service published a report recently highlighting changes in the servicing industry. Many large servicers, predominantly banks, have reduced...

The Financial Services Roundtable recently called for enacting comprehensive housing finance reform, including reform of the FHA’s single-family mortgage insurance program while focusing the agency’s mission on first-time and low- and moderate-income borrowers. The FSR’s call came in a detailed response to President Trump’s executive order earlier this year directing the Treasury Department to conduct an assessment of financial regulations. For starters, the trade group urged...

All three hope to raise cash by selling MSR assets, eliminate the need to hold large sums for servicing advances and – importantly – buy some time.

Performance of non-QM loans has been strong, buoyed by good house-price appreciation and the fact there have been no lawsuits based on the ability-to-repay rule.

Redwood generally prefers to have multiple execution options. The company is considering issuing MBS backed solely by Choice mortgages.