“When a servicer recognizes losses on loans previously modified with forbearance, it could significantly impact cash flows across the capital stack,” writes Bank of America Merrill Lynch.
Hisey, a former Fannie Mae executive, has been given the title of chief strategy and external affairs officer, a newly created position at the nonbank lender/servicer.
Also, new single-family MBS production by Fannie Mae and Freddie Mac plummeted 15.6 percent from February to March as the GSEs posted their lowest quarterly production total in 14 years.
PHH Mortgage has been on the auction block for well over two months now and at least three nonbank buyers have looked at the firm, according to industry advisors close to the company. However, it remains to be seen whether a deal can get done during a year in which residential production could plunge by 30 percent or more. Industry advisors have identified as possible buyers Carrington Mortgage and Ocwen Financial. Both are growth-oriented nonbanks that have been selective buyers of servicing rights and production assets the past few years. At least one other potential buyer has been mentioned...
What does the CFPB think of Martin’s allegations and Raucci’s report backing her up? An agency spokeswoman did not return a media inquiry from IMFnews.
Johnson-Crapo is wide open on what entities could issue the new MBS and even allows single firms to be loan originators, aggregators, issuers and bond guarantors.
In the pre-crash days, newly created MSRs were selling at 6 and even 7 times the servicing fee. “I even saw prices of eight,” said Chuck Klein, managing partner for Mortgage Banking Solution.
The two have petitioned Treasury Secretary Jack Lew to designate Fannie and Freddie as SIFIs. Being an SIFI means the two would be subject to higher capital standards and greater scrutiny – as though the two aren’t under enough scrutiny as it is.
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