Poor underwriting, rather than the collapse of house prices, more likely caused homeowners to default on their non-agency mortgage loans – a situation that gradually worsened and subsequently caused the country’s worst financial disaster, according to a new report published by University Financial Associates. Subject to a number of caveats, the report’s findings dramatically illustrate the importance of eroding underwriting quality in non-agency mortgage-backed securities ...
The five largest mortgage servicers that got into trouble because of their flawed servicing and foreclosure practices have passed their final test for compliance with the 2012 National Mortgage Settlement, according to the Office of Mortgage Settlement Oversight. The OMSO report summarizes a set of five compliance reports filed by NMS Monitor Joseph Smith with the U.S. District Court for the District of Columbia for five servicers that were subject to the $25 billion ...
But the news wasn't all good: After peaking at $280 billion in the third quarter of 2015 – an eight-year high – purchase-mortgage originations tumbled 25 percent in 4Q...
A warehouse executive, whose bank is based on the East Coast, noted that when a nonbank client loses money two quarters in a row, “it triggers certain [warehouse] covenants.”
In the new “Mortgage Professional’s Handbook,” residential finance technology expert Jeff Lebowitz predicts the industry “is about to exit its Victorian era of technology use."
Ocwen continues to face regulatory issues, including constraints on growth via acquisitions. However, Fitch recently upgraded a number of the firm’s servicer ratings from a level 4 to a level 3-minus with a “stable” outlook.
As IMFnews went to press Monday, investors were once again punishing the stock, with shares trading down 20 percent on the day to $4.95. Its all-time high is $60 a share.
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