Mortgage Servicers

Browse articles from all of our Newsletters related to Mortgage Servicers.

June 15, 2018 - Inside FHA/VA Lending

USDA Spells Out Rules for Direct, Guaranteed Mortgage Refinancing

The U.S. Department of Agriculture Rural Housing Service has issued guidance detailing requirements for refinancing its direct and guaranteed rural-housing loans. Direct and guaranteed are both Section 502 loan programs but are different from each other. The lender for guaranteed home loans is a privately owned thrift, bank or mortgage company, which is also the servicer of the loan. The lender for the direct program is the RHS, while USDA Rural Development, which includes RH, is the servicer. Guaranteed borrowers are capped at 115 percent of the area median income while income levels for direct borrowers must not exceed 80 percent of AMI. Guaranteed borrowers are not eligible for payment assistance, which can lower the interest rate on the mortgage to as low as 1 percent. The assistance is for direct borrowers and is based on borrower income as a percentage of AMI. Finally, borrower protections differ ...


June 15, 2018 - Inside FHA/VA Lending

USDA Securitization Fell in 1Q18, PennyMac Grabs Market Lead

Issuance of mortgage securities backed by USDA loans dropped during the first three months of 2018. Approximately $4.03 billion of rural housing loans with a USDA guarantee were delivered in Ginnie Mae MBS during the first quarter, down 18.3 percent from the previous quarter. Agency data also showed an 11.7 percent decline in USDA securitization volume from the same period a year ago. Rural housing loans accounted for 1.5 percent of all loans securitized in Fannie Mae, Freddie Mac and Ginnie Mae pools and 2.8 percent of loans with private or government-backed mortgage insurance. Purchase loans comprised the bulk of USDA loans that were delivered into Ginnie MBS pools. PennyMac knocked Freedom Mortgage out of first place with a total of $753.3 million in securitized USDA loans despite a 10.4 percent decline in production. Freedom Mortgage accounted for $523.3 million of USDA loans pooled in ... [Charts]


June 15, 2018 - Inside FHA/VA Lending

Guidance Sought on Whether ‘Dreamers’ Qualify for FHA Loan

One policy issue that could land on FHA Commissioner Brian Montgomery’s desk soon is whether potential borrowers who were granted temporary status under the Obama-era Deferred Action for Childhood Arrivals are eligible for FHA-insured loans. Mortgage lenders are divided on the issue and may soon ask the newly installed head of the FHA for guidance, said Brian Chappelle, a mortgage industry consultant. President Obama created the DACA program in 2012 to allow undocumented immigrant children to stay temporarily in the U.S. for two years without fear of deportation. They have an opportunity to renew their DACA status towards the end of their second year. To qualify for DACA, the undocumented child must have arrived in the country before they were 16 years old or be younger than 31 on June 15, 2012. They must have lived continuously in the country since June 2007. A person protected under DACA is ...


June 15, 2018 - Inside FHA/VA Lending

Bill Introduced to Address Issues Raised by DOJ Use of FCA, FIRREA

Bipartisan legislation was introduced recently in the House to addresse problems arising from the use of the False Claims Act and the Financial Institutions Reform, Recovery, and Enforcement Act in the context of mortgage insurance claims. Co-sponsored by Reps. Josh Gottheimer, D-NJ, and Lee Zeldin, R-NY, the bill would provide certain restrictions and clarifications on false claims and civil actions related to loans with FHA, VA or U.S. Department of Agriculture guarantee. H.R. 5993, the Fixing Access to Credit Act of 2018, has been sent to the House Financial Services Committee and to the House Committee on the Judiciary. A Civil War statute, FCA seeks to deter fraud against the government by providing hefty penalties for violations and establishing a 10-year statute of limitations to file civil claims. Enacted in the wake of the savings and loan debacle in the 1980s, FIRREA outlawed abusive lending and ...


June 15, 2018 - Inside FHA/VA Lending

Reverse-Mortgage Lenders Seek Backend Changes in HECM Rules

Now that Housing and Urban Development Secretary Ben Carson has sworn in a new FHA commissioner, reverse mortgage lenders are hoping to see some changes in the Home Equity Conversion Mortgage program. The National Reverse Mortgage Lenders Association is planning to ask FHA Commissioner Brian Montgomery for changes in the HECM program, particularly at the back end, to make it more profitable for lenders. Peter Bell, the group’s chief executive officer, believes there are opportunities to reduce the cost of the HECM program to the FHA fund by having better servicing procedures. “We would like to see certain loss mitigation procedures in the new HECM rules to be made available to all reverse-mortgage loans,” he said. Some of those procedures apply only to loans originated on or after the new rules became effective, such as “cash for keys.” Cash for keys is a cash offer by a lender to a ...


June 15, 2018 - Inside FHA/VA Lending

Ginnie Announces New Metric for Monitoring Issuer Performance

Ginnie Mae has added a new metric to make it easier for approved issuers to track the prepayment rates of single-family loans underlying they have delivered into mortgage-backed securities. The new prepayment metric would enhance Ginnie’s Issuer Operational Performance Profile (IOPP) tool, which was launched in 2015 to help issuers measure their performance against the agency’s standards. The new tool is the latest move by Ginnie to ensure the integrity and market predictability of Ginnie MBS. The prepayment tool will be available to lenders beginning June 25. The announcement follows an agency administrative action last week against three VA lenders that were penalized for cherry picking and refinancing unseasoned VA loans not to benefit borrowers but to charge them higher fees. The lenders – Freedom Mortgage, SunWest Mortgage Co. and NewDay USA – were among nine issuers that ...


June 15, 2018 - Inside Nonconforming Markets

Non-QMs Prepay Faster than Legacy Non-Agency

Prepayment rates on non-qualified mortgages are higher than the rates seen on legacy non-agency mortgages and performance for new production is better, according to industry analysts. “Nonprime non-QM loans have exhibited high voluntary prepayment speeds, resulting from credit curing and high initial mortgage interest rates,” analysts at Deutsche Bank Securities said. The voluntary prepayment rate on non-QM mortgage-backed securities ... [Includes one data chart]


June 15, 2018 - Inside Nonconforming Markets

Jumbo Servicing Portfolios Grow in First Quarter

The amount of jumbo mortgages handled by a large group of servicers increased in the first quarter, according to a new ranking by Inside Nonconforming Markets. The 30 servicers handled an estimated total of $1.05 trillion in jumbos as of the end of March, up 1.4 percent from the end of 2017 and a 13.5 percent increase from March 2017. Growth in jumbo servicing significantly outpaced trends in total mortgage debt outstanding. Some $10.65 trillion ... [Includes one data chart]


June 15, 2018 - IMFnews

What We’re Hearing: There Goes the GSE Footprint / MBA Chief Tackles GSE Stock Speculators / Underwater: Pershing Square / Fannie-Freddie Charter Creep or are They Just Helping the Little Guy? / New Hires for TCF

It’s official: The Treasury Department’s goal is to reduce the footprint of Fannie Mae and Freddie Mac. Who says so? Treasury counselor Craig Phillips...


June 15, 2018 - IMFnews

CFPB Doesn’t Have to Make Complaints Public. However…

The CFPB is considering cutting off public access to the complaint database, which was launched in 2012 under former Director Richard Cordray.


June 15, 2018 - IMFnews

MountainView Offers Fannie/Freddie MSR Portfolio

The average loan size of the package is $224,106…


June 14, 2018 - Inside Mortgage Finance

Few Delinquencies on Post-Crisis Investment-Property Mortgages, Some Concerns About Non-Agency Market

Mortgages originated in recent years for investment properties have performed well, helped by improvements to underwriting standards after the financial crisis, although there are concerns about underwriting practices in the non-agency market.


June 14, 2018 - Inside Mortgage Finance

Wells Plots Growth in Mortgage Market Share With an Emphasis on Customer Satisfaction

Wells Fargo lost its spot as the top-ranked retail originator in the first quarter and recently agreed to sell 52 branches to Flagstar Bank, but company officials insist that the lender is poised for growth in the retail and correspondent channels.


June 14, 2018 - Inside Mortgage Finance

More Banks Bidding on Mortgage Servicing Rights as Agencies Move to Ease Basel III Capital Restrictions

Although federal banking regulators are still toiling with language that will ease restrictions on how much mortgage servicing rights can count toward Tier I capital, depositories are aggressively reasserting their presence in the MSR market.


June 14, 2018 - IMFnews

Short Takes: FHFA Ignoring HERA? / A Refresher Course / How Fannie and Freddie Dismantled Legislative Bomb Threats / A Large RPL Auction from Fannie / OCC to Finally Weigh In on Fintech

It might be said that OFHEO was a weak federal regulator...


June 14, 2018 - IMFnews

Don’t Look Now but Ginnie Servicing Prices are the Best They’ve Been All Decade

Servicing brokers such as Mark Garland, Steve Harris and Tom Piercy are seeing new entrants to the MSR-buying market…


June 14, 2018 - IMFnews

MSR Market Heats Up, New Auctions from Phoenix, MIAC

Bank buyers of MSRs favor packages that are at least $2 billion in size…


June 14, 2018 - IMFnews

HomeStreet Reducing Mortgage Staff by 10 Percent Due to Low Demand for Purchase Loans

Last October, HomeStreet cut 60 employees. In May, it put out for bid $5 billion of mortgage servicing rights….


June 13, 2018 - IMFnews

Short Takes: Budget Cuts at the CFPB? / BCFP not CFPB / Sounding the Alarm on U.S. Debt / A Flow Servicing Platform Run by the GSEs / A New Hire for United Fidelity

Do federal deficits even matter anymore? Jeff Gundlach thinks so...


June 13, 2018 - IMFnews

THL Closes on Investment in Guaranteed Rate. Nonbank Anticipates Record Production This Year

Despite heralding the investment made by Thomas H. Lee Partners, Guaranteed Rate will not say how much the PE firm invested or how large of a stake it acquired…


June 12, 2018 - IMFnews

Short Takes: No Relief in Sight for GSE Common / Pershing Square in a World of (GSE) Hurt? / JMP Likes Impac / Consumer Data Collection Returns to the CFPB / Plaza Home Promotes Fontaine

JMP likes the higher profit margins that accompany non-QM lending…


June 12, 2018 - IMFnews

FHFA Proposes Minimum Capital Requirements for Fannie and Freddie. An RBC ‘Bill’ of $181 Billion

By comparison, commercial banks must have tier 1 capital of 8.0 percent of risk-weighted assets.


June 12, 2018 - IMFnews

Lenders Pessimistic About Profit Margins for 3Q18, Cuts to Staff Expected

Fannie Mae: “We expect this will prompt businesses to turn to cost-cutting..."


June 12, 2018 - IMFnews

Mortgage M&A Mania has Finally Arrived. Who’s Next?

Mark Stafford, managing director of MS Capital Advisors: “Margin compression is real and many companies lost money in the first quarter.”


June 11, 2018 - Inside the CFPB

Democrats Stress Data in CFPB Rulemaking; Lenders Want Clarity

Democratic lawmakers sent comment letters to the CFPB in response to its request for information regarding the bureau’s rulemaking processes, emphasizing the importance of data collection in making new rules. Sens. Elizabeth Warren, MA, and Mark Warner, VA, wrote in a comment letter to Acting Director Mick Mulvaney that data collection is essential to rulemaking at the CFPB. “The CFPB’s decision-making is at its best when it has data to guide the ...


June 11, 2018 - Inside the CFPB

CFPB Officially Drops RESPA Kickback Case Against PHH

The CFPB last week dismissed its precedent-setting case against PHH Corp., officially overturning the bureau’s controversial interpretation of the Real Estate Settlement Procedures Act under former Director Richard Cordray. In the end, the four-year legal battle over alleged RESPA violations regarding captive reinsurance arrangements ended up with no fine or penalty being assessed on the mortgage lender. The final court ruling that upheld the constitutionality ...


June 11, 2018 - IMFnews

Short Takes: Celebrity Wants to be a Player in Mortgage M&A / Commercial Bank Seeks Mortgage Company / Garrett on LO Pay / Genworth Sale Clears a Hurdle / Wells Fargo LO Bolts for Nonbank

Consultant Joe Garrett: "Salesmen don’t get paid less just because the company didn’t do well..."


June 11, 2018 - IMFnews

American Action Forum: Merge the GSEs into HUD. (You Heard that Right)

The AAF warns against the GSEs becoming private entities again, noting there’s no way for them to raise enough capital…


June 11, 2018 - IMFnews

Bank MSR Holdings Decline Again in 1Q18, but Valuations Hit Record High

Banks have been reducing their servicing for others since late 2009…


June 8, 2018 - Inside Mortgage Trends

MSR Market Looks Strong But Issues Remain

Trading in mortgage servicing rights is as good as it’s been for years, but it remains a small market full of pricing and transactional irregularities, according to industry experts speaking on a panel at the secondary market conference sponsored by the Mortgage Bankers Association last month.


June 8, 2018 - Inside Mortgage Trends

Bank MSR Holdings Decline Again in 1Q18, But Valuations Hit Record High

Commercial banks and savings institutions once again reduced their holdings of mortgage servicing rights during the first quarter of 2018, according to an Inside Mortgage Trends analysis of call-report data. [Includes one data chart.]


June 8, 2018 - IMFnews

What We’re Hearing: Time to Enter the Non-QM Market? / LoanScorecard is Bullish on the Sector / Citadel and AO Keep Humming Along / FTC Wants to Know More About How the RE Brokerage Industry Works / A Bunch of ‘Yes Men’ on the CFPB Advisory Board? / Mulvaney, Disruptor (And Loving It)

To conservatives in the financial services industry, Mick Mulvaney is a hero.


June 7, 2018 - IMFnews

Short Takes: CIT Exits Servicing Business / Hensarling and Godot / Sinking Share Prices for Fannie and Freddie / Who You Calling Small? / Cooper Labs?

If you’re looking for a barometer on reform legislation passing, just take a peek at the share price of Fannie and Freddie common.


June 7, 2018 - Inside Mortgage Finance

Don’t Look Now but Ginnie Mae Servicing Prices are the Best They’ve Been All Decade

For years, values on Ginnie Mae mortgage servicing rights have lagged behind the prices paid for Fannie Mae and Freddie product, but finally it appears the government market is catching up.


June 7, 2018 - IMFnews

MBA Board Picks Veteran Mortgage Banker Broeksmit to succeed Dave Stevens as CEO and President

Broeksmit, who has spent his entire 33-year career in the mortgage industry, joins MBA from Treliant Risk Advisors...


June 6, 2018 - IMFnews

Lenders Lost Money on Originations in 1Q18; Servicing to the Rescue…

Personnel expenses averaged $5,899 per loan in 1Q18 compared to $5,560 in the fourth quarter, up 5.7 percent…


June 6, 2018 - IMFnews

Mulvaney Wants to Make the CFPB a ‘Gold-Standard’ Regulator

Interim CFPB chief Mick Mulvaney: “We are still closely associated with Sen. Elizabeth Warren. We are her baby. That’s not where a gold-standard regulator should be.”


June 6, 2018 - IMFnews

MBA Makes the Case to IRS that Lenders are Eligible for 20 Percent Deduction Included in Tax Reform

The trade group argues that if lenders organized as pass-through entities do not receive the new deduction, they will be at a competitive disadvantage...


June 6, 2018 - IMFnews

Ditech Posts $467 Million Profit for 1Q18 – Thanks to BK Filing and Debt Cancellation

Ditech CEO Tom Marano: “I am pleased with the improving performance of our servicing business; however, I am disappointed with the performance of the origination business...”


June 5, 2018 - IMFnews

Short Takes: Angel Oak Buys Stake in Commercial MB / Questions Being Asked about Trading in GSE Corporate Bonds / Texas Mortgage Shop Closes? / A New Hire for Pavaso

Another mortgage company has closed. This one in Texas...


June 5, 2018 - IMFnews

Tepid Increase in Subservicing Contracts During 1Q18

“There could be some sector consolidation down the road,” noted Allen Price, senior vice president in charge of business development for RoundPoint Mortgage…


June 4, 2018 - IMFnews

Prestwick Selling MSR Portfolio Backed by Healthcare Facilities

The average loan amount is $10.9 million.


June 4, 2018 - IMFnews

Incenter Auctioning Off Corporate Mortgage Shell of SoCal Lender

The corporate shell includes 27 state licenses…


June 1, 2018 - Inside FHA/VA Lending

NY Law Requires New Foreclosure Notices, Certificates of Merit

New York has enacted legislation redefining a reverse mortgage as a “home loan.” With the new law, statutory 90-day pre-foreclosure notices and certificates of merit would be required for all reverse-mortgage foreclosures in the Empire State. New York’s foreclosure settlement conference law has incorporated the new definition by reference, removing any doubt that such meetings are required in most reverse-mortgage cases, said industry attorneys. Gov. Andrew Cuomo, D, signed the amendment into law on April 12, 2018, though it is deemed to have been in full force and effect as of April 20, 2017. However, the pre-foreclosure notice requirement for reverse mortgages has an effective date of May 12, 2018. For actions commenced after May 12, the new state law requires lenders, servicers or assignees to provide a pre-foreclosure notice at least 90 days before initiating legal action against the borrower at the ...


June 1, 2018 - Inside FHA/VA Lending

VA Seeks Testers for Enhanced VALERI Servicing Platform

The Department of Veterans Affairs is seeking volunteers to test its redesigned servicing platform, the first phase of the agency’s ambitious plan to convert the platform into a fully automated end-to-end, integrated mortgage origination and servicing system. The VA has reached out to servicers connected to its VA Loan Electronic Reporting Interface (VALERI) to participate in the testing and transition process. The plan is to convert VALERI, which allows servicers to upload servicing data, ultimately into a complete automated underwriting and loan origination system. The system conversion effort aims to integrate all business lines, including loan origination, property valuations and mortgage servicing to improve performance of the VA loan program to increase usage by veterans and provide better customer service. It also aims to bring more transparency to the VA loan process and holding underwriters, originators and ...


June 1, 2018 - Inside FHA/VA Lending

Government Agencies Plan Big Technology Investment

Officials at the government’s mortgage programs said that major investments in technology will make their programs more efficient and pay for themselves, during a panel session at the Mortgage Bankers Association secondary market conference last week in New York. Michelle Corridon, deputy director in the single-family housing guaranteed loan division of the U.S. Department of Agriculture, said her program’s focus now is on infrastructure and innovation. The USDA is instituting a technology fee on every closed loan starting in October, she said. The enhanced online system will include new screens for housing, which now shares a landing page with other rural programs. When it’s complete, the new system will handle the process from guaranty commitment through loan delivery. In another efficiency move, rural housing is “rolling up” processing chores to fewer offices so it doesn’t have ...


June 1, 2018 - Inside FHA/VA Lending

S. 2155 Provides Protections to VA Borrowers; VA Issues Guidance

Provisions to protect VA borrowers from abusive lending are now in effect after President Trump signed into law a broad regulatory relief package last week. The VA measures are part of S. 2155, the Economic Growth, Regulatory Relief, and Consumer Protection Act of 2018, which the U.S. Senate passed on March 14 and the House approved on May 22. The bipartisan measures became effective for VA loan applications taken on or after May 25, 2018. They were part of the bipartisan Protecting Veterans from Predatory Lending Act, which Sens. Thom Tillis, R-NC, and Elizabeth Warren, D-MA, introduced in January and later incorporated in S. 2155. The bill was designed to protect VA borrowers from loan churning or serial refinancing and specifically targeted the VA’s Interest Rate Reduction Refinance Loan program, where the churned VA loans ended up. According to the agency, such practices not ...


June 1, 2018 - Inside FHA/VA Lending

Regulatory Relief Law Unexpectedly Disrupts Ginnie Mae MBS Market

Ginnie Mae this week warned that VA refinance loans, particularly Interest Rate Reduction Refinance Loans, may not be included in any new pool or loan package if they do not comply with the newly enacted law protecting VA borrowers from predatory lending. The agency announced new pooling guidance pursuant to the loan-seasoning provision in the Economic Growth, Regulatory Relief, and Consumer Protection Act, which President Trump signed into law last week (See details of the new law below ). The changes affect issuances of Ginnie mortgage-backed securities on or after June 1, 2018, but do not affect MBS issued before that date, according to the guidance. However, lenders seeking a guarantee after June 1 may have to recalibrate their loan-origination platforms to exclude refis that do not meet the new law’s seasoning requirements, said the Structured Finance Industry Group. The ...


June 1, 2018 - IMFnews

What We’re Hearing: Making Lemons out of Lemonade / Mortgage Brokers Trim Staff / A RIF at Movement Mortgage / The FHFA-OCC Connection / Conventional Lenders Eyeing the Non-QM Market? / A Tech Firm Looked at NSM

Although some conventional lenders are struggling with lower volumes, Angel Oak and Citadel Servicing Corp. are humming along...


June 1, 2018 - IMFnews

The GSEs in Conservatorship: Sure Doesn’t Seem Like It

“We’re partnering with external firms to understand and anticipate their needs,” said Freddie Mac official Kevin Palmer…


Poll

On average, how much of a commission does your shop pay loan officers per loan they originate ?

25 to 50 basis points.

18%

51 to 100 basis points.

42%

101 to 150 basis points.

15%

North of 151 basis points. (We expect a lot.)

13%

We pay salary, not commission.

13%