Regulatory oversight of nonbank mortgage lender/servicers has increased in recent years, but most of the actions have been uncoordinated. In the latest move, FHFA proposed financial standards for GSE seller/servicers.
Mortgage banking income among banks and thrifts declined by nearly 25% during the fourth quarter of 2021. JPMorgan Chase was not immune but managed to lead the pack for the full year. (Includes data chart.)
While servicing for others among banks declined slightly in the fourth quarter, trends varied among the big boys. Top-ranked Wells continued to reduce its portfolio while second-ranked JPM was an active buyer of MSRs. (Includes data chart.)
The FHFA’s proposed financial standards for GSE seller/servicers could be a boon for larger firms; CFPB launches small business advisory review panel for rulemaking on automated valuation models; foreclosure starts jump; MISMO launches rate quote standard for mortgage insurance; delinquency rate on property taxes declines.
The Federal Housing Finance Agency plans to implement tiered financial requirements for nonbank servicers and set harsher treatment for Ginnie servicing than what’s currently required for GSE seller/servicers.
Moody’s placed AAA-rated tranches from four warehouse securitizations on review for potential downgrades following a revision to rating criteria that includes harsher treatment of deals that allow for wet loans.