Two companies that were created earlier in the decade to buy mortgage servicing rights at rock-bottom prices are headed in different directions these days: Seneca Mortgage Servicing is exiting the business, while Pingora Loan Servicing is slated to change hands for the second time in a year. As Inside Mortgage Finance went to press this week, investment banker Houlihan Lokey was involved in direct negotiations to sell Seneca’s $53.6 billion servicing portfolio, which is considered pristine in nature. Investment banking sources said...
Walter Investment Management Corp. has secured a second round of limited waivers from its warehouse providers, a signal that its lenders are being patient – for now. According to interviews with warehouse executives and consultants, the granting of short-term waivers can be a common practice, but if those waivers go into a third or fourth round it can get expensive for the borrower and may signal an end to the patience of a company’s bankers. Walter, the parent of Ditech Financial – the nation’s 13th largest residential servicer – reported...
An appeals court ruled in favor of mortgage underwriters last week in a dispute regarding overtime eligibility. The issue could be taken up by the Supreme Court of the U.S. as the ruling furthered a split among lower courts on the issue. Mortgage underwriters from Provident Savings Bank filed a lawsuit in 2012 against the bank after the employer said they qualified for the Fair Labor Standards Act’s administrative exemption to overtime payments. A district court ruled in favor of the bank in 2015 in the case of McKeen-Chaplin v. Provident Savings Bank. The U.S. Court of Appeals for the Ninth Circuit overturned...
In the SEC filing, Annaly reveals that it owns servicing assets through an “ongoing joint venture with a leading sovereign wealth fund.” The SWF was not identified…
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