Seller/Servicer News

Lenders Expected to Retain More Servicing After Recent Sell Off

jdohnert@imfpubs.com — Thu, 12 Feb 2026 11:38:11 -0500

Lenders are examining opportunities to retain more servicing this year as originations are expected to stay steady.

Fannie Finds Issues With Lenders’ Collateral QC

dhollier@imfpubs.com — Thu, 01 Feb 2024 12:08:09 -0500

Fannie Mae issued a report on quality control issues for loans reviewed in 2023, noting instances where lenders lost rep-and-warrant relief.

Freedom to Pay LoanCare $23 Million in Servicing Dispute

smanas@imfpubs.com — Thu, 27 Jul 2023 13:08:39 -0400

A New Jersey jury this week agreed with LoanCare’s counterclaim that Freedom Mortgage fraudulently transferred funds when terminating a subservicing agreement.

Freddie DTS Credit Fee Caps Don’t Apply to Cash-Out Refis

dhollier@imfpubs.com — Thu, 19 Jan 2023 11:28:01 -0500

In a reissued bulletin, the mortgage giant said it will allow some duty-to-serve cash-out refinances to receive 0% credit fee caps because of the confusion caused by an earlier notice.

CFPB, Wells Reach Record Settlement: $3.7B

smanas@imfpubs.com — Thu, 22 Dec 2022 13:04:00 -0500

The consent order covers unfair and deceptive acts and practices in mortgage servicing, auto loan servicing and maintenance of deposit accounts.

New Suits Against Now-Closed Non-QM Lender Keep Sprouting Up

smanas@imfpubs.com — Thu, 08 Dec 2022 11:03:00 -0500

Sprout Mortgage, which closed its doors in July, is facing at least four lawsuits from jilted business partners.

Cash-Offer Fintech Reali Closes

smanas@imfpubs.com — Fri, 09 Sep 2022 13:05:04 -0400

The fintech that promised to smooth out borrowers’ home transitions with cash offers and “sell before you buy” financing has shut shop, citing market conditions and difficulty raising capital.

Quality Control Calibrations to Start at Fannie Next Month

dhollier@imfpubs.com — Thu, 08 Sep 2022 13:02:00 -0400

The mortgage giant will assess lender quality control by comparing the defect rates reported by lenders with its own data on the same loans.

Sources: Sprout CEO Selling Manhattan Penthouse

smanas@imfpubs.com — Thu, 18 Aug 2022 10:25:02 -0400

It appears that Michael Strauss, CEO of now-shuttered Sprout Mortgage, is looking to sell his Manhattan penthouse on Park Avenue for $26.5 million.

Rocket Puts Down Its Marker in the Personal Finance Space

smanas@imfpubs.com — Thu, 23 Dec 2021 12:03:00 -0500

In a deal expected to close by year end, Rocket Companies will pay $1.28 billion in cash to acquire personal finance app Truebill, a six-year-old tech start-up with 2.5 million users.

Mr. Cooper Seeks Dismissal of Excess Withdrawal Lawsuit

news@imfpubs.com — Thu, 19 Aug 2021 09:11:41 -0400

The nation’s fourth-largest mortgage servicer is being hit on the legal front over a “processing issue” that caused unauthorized withdrawals of monthly mortgage payments.

A Blowout 2Q21 for Freddie. Meanwhile, G-Fee Trouble Ahead?

pmuolo@imfpubs.com — Thu, 29 Jul 2021 10:51:51 -0400

If mortgage lenders thought g-fees might decline this fall, they may be gravely disappointed. Meanwhile, the adverse market refi fee clearly boosted Freddie Mac’s 2Q21 results.

GSEs Scramble to Meet PSPA Limits on Mortgage Acquisitions

dhollier@imfpubs.com — Thu, 17 Jun 2021 11:49:26 -0400

Fannie imposes a draconian 3% cap on NOO loans for some lenders to ensure it meets the 7% cap required under the PSPA. Freddie, already under the cap, puts its threshold at 6%.

A Rebound for MSR Bulk Deals?

pmuolo@imfpubs.com — Thu, 19 Nov 2020 10:45:00 -0500

Servicing advisors are using the phrase “green shoots” to describe what looks like a revival in MSR sales. But don’t pop the champagne quite yet.

Industry Rails Against Steep GSE Refinance Fee

dhollier@imfpubs.com — Thu, 20 Aug 2020 10:15:00 -0400

Trade groups point out the irony of raising mortgage rates at a time when the Federal Reserve is spending more than $40 billion a month on agency securities in an attempt to lower the cost of buying or refinancing a loan.

Waiting and Hoping for a Break on GSE LLPAs

pmuolo@imfpubs.com — Thu, 20 Aug 2020 10:00:00 -0400

At the very least, mortgage executives are hoping for a delay in the implementation date on the new refi fee promulgated by Fannie Mae and Freddie Mac.

Lenders Get Smacked with 50BP LLPA on GSE Refis

pmuolo@imfpubs.com — Thu, 13 Aug 2020 11:05:00 -0400

In a surprise move late Wednesday, the GSEs installed a new 50-basis-point LLPA on most refis. Needless to say, lenders feel betrayed.

Rock Bottom Rates Spark a Rush to Hedge MSRs

pmuolo@imfpubs.com — Thu, 25 Jun 2020 09:30:00 -0400

To hedge MSRs or not to hedge? That’s the question of the day. It appears that many shops, including the top-ranked Mr. Cooper, are getting in line.

FHFA Holds Back Eligibility Standards for Seller/Servicers

dhollier@imfpubs.com — Thu, 18 Jun 2020 11:20:00 -0400

Independent mortgage bankers heaved a sigh of relief after the Federal Housing Finance Agency said it will re-propose the minimum financial eligibility requirements for single-family seller/servicers.

LIBOR Transition Closes In for Mortgage Industry

dhollier@imfpubs.com — Thu, 04 Jun 2020 09:00:00 -0400

The GSEs won’t accept LIBOR-based loan applications after Sept. 15. They expect all purchases linked to the London rate to cease by yearend.

Unsaleable MSRs Could Turn to Gold in a Few Months

pmuolo@imfpubs.com — Thu, 28 May 2020 09:50:00 -0400

Mortgage servicing rights have little value in today’s secondary market, but investment bankers predict that one day, maybe soon, this volatile asset will once again rise from the ashes.

The GSEs Need Specialty (COVID) Servicers (Now)

pmuolo@imfpubs.com — Thu, 23 Apr 2020 11:30:00 -0400

The GSEs reportedly are in the hunt to hire special servicers to handle COVID-19-related forbearance claims. The reason: Some nonbanks may be living on borrowed time.

Servicers Brace for Large MSR Marks. Mr. Cooper Goes First

pmuolo@imfpubs.com — Thu, 09 Apr 2020 10:00:00 -0400

Megaservicer Mr. Cooper anticipates a large MSR mark for the first quarter, thanks to lower rates and COVID-19. The big question: How bad will it be for the rest of the industry?

A Double Whammy for 1Q20 MSR Marks: Plunging Rates and Virus

pmuolo@imfpubs.com — Thu, 02 Apr 2020 11:15:00 -0400

The first quarter is over and financial blood is in the streets. Now comes the hard part: figuring out MSR values that have been slammed by lower rates and (coming) delinquencies. It won’t be pretty.

Top Servicing Vendor Black Knight and PennyMac Trade Lawsuits

pmuolo@imfpubs.com — Thu, 07 Nov 2019 11:50:00 -0500

PennyMac wants out of its servicing platform marriage with vendor Black Knight. As might be expected, lawsuits and nasty allegations are the order of the day. The two have been working together for 10-plus years.

Mortgage Grapevine: Profits for LendingTree, Losses for Ocwen

pmuolo@imfpubs.com — Thu, 07 Nov 2019 09:11:00 -0500

Loan broker LendingTree continues to earn a profit while net earnings at Ocwen Financial remain elusive.

Stakeholders Seek Improvements in HECM Program

news@imfpubs.com — Thu, 03 Oct 2019 09:24:00 -0400

Witnesses at a House subcommittee hearing on the reverse mortgage program called for improved servicer oversight, mandatory loss mitigation for new HECMs and a new risk rating system.

FHFA Chief Keeps a Close Eye on G-Fees, More

pmuolo@imfpubs.com — Thu, 26 Sep 2019 11:20:00 -0400

The FHFA is doing its best to make certain the expansionist tendencies of Fannie and Freddie are held in check. Also, a crackdown on g-fee “deals.”

Experts Doubt Non-Agency Market Can Take on GSE Business

dhollier@imfpubs.com — Thu, 26 Sep 2019 09:16:00 -0400

Experts doubt the non-agency market can pick up the slack of any reduction in the GSEs’ business once the qualified mortgage “patch” expires.

FHFA Throws Down the Gauntlet on a GSE Pilot, Kills MSR Financing Effort

pmuolo@imfpubs.com — Thu, 19 Sep 2019 11:50:00 -0400

FHFA Director Mark Calabria this week ended a pilot program that allowed the GSEs to extend lines of credit to nonbanks pledging servicing rights as collateral.