Mortgage Servicers

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

August 17, 2018 - Inside Mortgage Trends

Foreclosure Rate Returns to Pre-Crisis Levels

The foreclosure rate returned to pre-crisis levels this year, though industry analysts note that foreclosure rates remain somewhat elevated in states with a judicial foreclosure process.


August 17, 2018 - Inside Mortgage Trends

Supply, Pricing Boost Second-Lien Trading

Secondary market trading for home-equity loans has increased across most market segments, thanks to greater available supply driven by higher prices, according to a new report from MountainView Financial Solutions, a Denver-based provider of financial services analytics and advisory services.


August 17, 2018 - IMFnews

What We’re Hearing: Two Giants May Change Hands (Or Maybe Not) / Job Cuts at Ditech / Can HL Sell Ditech Fast Enough? / Tom Marano’s Experience with Troubled Shops / CALCAP Bullish on Fix-and-Flip / A Confidential GSE File On…

It might be in Ditech’s best interest if Houlihan Lokey finds a buyer now while MSR values are still peaking…


August 17, 2018 - IMFnews

Mortgage Delinquency Rates Down Sharply in 2Q18

Meanwhile, the Mortgage Bankers Association this week reported a substantial decline in its seasonally adjusted mortgage delinquency data series.


August 17, 2018 - Inside MBS & ABS

Fewer Investor Protections Seen in Current Subprime Auto Loan ABS Deals Compared to 1990s Issuances

There are fewer structural protections in today’s speculative-grade securities backed by subprime auto loans compared to below-investment grade issuances in the 1990s, according to an S&P Global analysis of the subprime auto loan ABS sector.


August 17, 2018 - Inside MBS & ABS

Term Notes Backed by Servicing Rights Hit the Market, But It Might be an Option Only for the Financially Well-Heeled

Thanks to higher interest rates and rock-solid valuations, the market for securities backed by mortgage servicing rights is beginning to heat up, with at least two deals hitting the market this month – one from PennyMac, the other from AmeriHome Mortgage.


August 16, 2018 - Inside Mortgage Finance

Mortgage Delinquency Rates Decline in Second Quarter Despite Uptick in Less-Severe Category

Mortgage delinquency rates fell sharply in the second quarter, according to the Inside Mortgage Finance Large Servicer Delinquency Index. [Includes one data chart.]


August 16, 2018 - Inside Mortgage Finance

State Agencies to Tighten Mortgage Servicing Rules, But CFPB May Not Scale Back Its Enforcement

Some states are gearing up to tighten their regulation of mortgage servicers to pick up the slack from a perceived pullback by federal regulators, although attorneys said the Consumer Financial Protection Bureau is still enforcing its servicing regulation.


August 16, 2018 - Inside Mortgage Finance

Subservicing Growth Slows in 2Q18; Certain Top Vendors Could Change Hands by Yearend

The dollar volume of subservicing contracts grew by 1.8 percent in the second quarter on a sequential basis, another sign that this specialty niche is continuing to slow, according to a new ranking and analysis from Inside Mortgage Finance. [Includes one data chart.]


August 16, 2018 - IMFnews

MountainView Taking Bids on $3.2B Fannie/Ginnie Portfolio

The Fannie Mae loans are located in 28 states…


August 16, 2018 - IMFnews

States Tighten Servicing Rules, but CFPB Still a Factor

There’s a perception the CFPB will take fewer enforcement actions under the leadership of Mick Mulvaney, but industry attorneys question whether there has been any pullback…


August 14, 2018 - IMFnews

Cowen Sees Political Turmoil Whipsawing the Financial Services Landscape. Servicers Should Brace for Action

Cowen: “We would expect enforcement to return with Democratic control and wane with GOP control.”


August 13, 2018 - IMFnews

IMA Working on $20 Billion MSR Transaction

The top five sellers of bulk agency product during the first-half of 2018 were Stearns Lending, Flagstar Bank, Seneca Mortgage, United Shore Financial (parent of United Wholesale Mortgage), and loanDepot.


August 13, 2018 - IMFnews

Why Mayopoulos’ Senior Lieutenants Will Turn Down the Fannie Mae CEO Job

Mayopoulos didn’t even earn a performance bonus in 2017, despite a companywide pre-tax profit of $18.4 billion.


August 10, 2018 - Inside FHA/VA Lending

USDA Centralizes Single-Family-Loan Foreclosure Processes

The U.S. Department of Agriculture is placing all single-family foreclosure processes under one roof and under one team. A comprehensive plan is being implemented to centralize all foreclosure functions to make them more effective, efficient and focused on customers, the agency said. Part of the plan is to consolidate individual state private-attorney agreements into a single contract across the single-family portfolio. USDA sees the state-by-state PA contracts as “bridge agreements” to a larger procurement award that allows foreclosure services to be conducted on a nationwide basis, said Joel Baxley, administrator of the USDA Rural Housing Service. Baxley said foreclosure resolutions are taking too long and are costly due to backlogs, which, in turn, results in unnecessary losses to the government. Streamlining the process and developing one foreclosure and ...


August 10, 2018 - Inside FHA/VA Lending

USDA Issuance Down at Midpoint From 2017, Up in Second Quarter

Fewer rural single-family mortgages and modified home loans with a USDA guarantee were securitized during the first six months of 2018 compared to last year. Delivery of USDA loans into Ginnie Mae pools over the last two quarters totaled $8.6 billion, down 10.1 percent from the same period last year but up 12.4 percent in the second quarter from the prior period. PennyMac topped all USDA issuers with $1.7 billion worth of rural housing MBS issued during the first half of 2018, up 22.1 percent year-over-year. New issuance also rose 30.0 percent in the second quarter from the previous quarter, enough for a 20.2 percent share of the securitized USDA market. ... [chart]


August 10, 2018 - Inside FHA/VA Lending

Senate Passes FY 2019 T-HUD Bill, Preserves Previous Funding Levels

On Aug. 1, the U.S. Senate voted 92-6 to pass a four-bill appropriations package that includes FY 2019 funding for the Department of Housing and Urban Development and the U.S. Department of Agriculture housing programs. The bill passed without changes to program funding levels previously approved by Senate appropriators. The House Appropriations Committee has approved FY19 spending bills for both HUD and USDA. The full House, which is away for the summer break until Sept. 4, has not yet voted on the package. The Senate bill retains the previous fiscal year’s $400 billion in new loan commitments in the FHA Mutual Mortgage Insurance Fund and $30 billion for the general insurance and special risk insurance program, which include special purpose single- and multifamily loans, multifamily rental housing and condominiums. The bill also sets aside $550 billion for Ginnie Mae ...


August 10, 2018 - Inside FHA/VA Lending

Treasury Urges HUD to Clarify FCA Materiality, Severity of Violations

A Treasury Department report called on the Department of Housing and Urban Development to establish clear standards for determining which mortgage-related violations and loan defects the Department of Justice should pursue under the False Claims Act. The report also recommended that DOJ ensure that materiality, for purposes of the FCA, is linked to the standards of the agency administering the program to which the claim has been filed. Furthermore, it urged both HUD and the DOJ to work together to clarify the process by which they can jointly resolve claims. The report was issued pursuant to President Trump’s February 2017 executive order establishing his administration’s policy to regulate the U.S. financial system according to a set of core principles. Both HUD and the DOJ have been successful in using the statute to prosecute FHA lenders who knowingly commit fraud or make ...


August 10, 2018 - IMFnews

Bulk Servicing Sales Continue at a Brisk Pace. A Record Year?

IMA and MountainView expect to trade more product this year than last…


August 10, 2018 - IMFnews

GSE Shareholders Propose New Theory in their Legal Challenge: the FHFA is Unconstitutional

Legal argument: If the FHFA is unconstitutional, then the net worth profit sweep must be…


August 9, 2018 - Inside Mortgage Finance

Bulk Servicing Sales Continue at a Brisk Pace, but New Concerns Emerge on Counterparty Risk

Roughly $97.1 billion of bulk mortgage servicing rights changed hands in the second quarter, bringing year-to-date activity to $193.3 billion, according to Inside Mortgage Trends, an affiliated newsletter. But even stronger sales may lie ahead.


August 9, 2018 - IMFnews

Short Takes: In Non-QMs We Trust / A Land Rush Into Non-QM? / A Nonbank Buying a Bank, Not an Everyday Occurrence / Ultimate Goal: To Tap FHLB Advances? / Nick Smith Departs Blackstone TORO

Impac's Justin Moisio: “Everyone’s getting into this game.”


August 9, 2018 - IMFnews

Impac Reports Large Loss for 2Q18, Blames Cash Call. Is Keen to Grow Non-QM Production

A spokesman said Impac is now funding $100 million per month in nonprime loans and plans to grow the business further.


August 9, 2018 - IMFnews

More of the Same from Ditech: A Net Loss, Lower Originations and Liquidity Concerns

In June, Ditech agreed to sell MSRs to New Penn Financial...


August 8, 2018 - IMFnews

Industry Seeks Update from Banking Regulators on Basel, Tier I Capital and MSRs

At the very least, the MBA wants a timeframe from the regulators…


August 8, 2018 - IMFnews

Redwood Reports Lower Earnings, but a Rise in Loan Purchases

At June 30, Redwood held $5.5 billion of residential loans on its books, up 40.6 percent from a year ago.


August 8, 2018 - IMFnews

Another Record Non-QM Production Quarter for Citadel. 2018 Production Could Top $1.8 Billion

At the end of July, Citadel serviced $1.75 billion of non-QMs…


August 8, 2018 - IMFnews

CFPB Active Again in Enforcement Actions. 23 Cases Being Litigated

A spokesperson told Inside the CFPB the agency’s office of enforcement is now “actively litigating 23 cases.”


August 8, 2018 - IMFnews

Mortgage Banking Income Fades at Banks

Second-ranked JPMorgan Chase had a similarly disappointing quarter.


August 7, 2018 - IMFnews

Short Takes: R-E-S-P-E-C-T is What loanDepot CEO has for Zillow / Houlihan Lokey Advised Zillow / Shellpoint Shines / MBA Likes the Sandbox / A Handful of Promotions at PRM

Anthony Hsieh of loanDepot: “Relax everyone. Competition is good."


August 7, 2018 - IMFnews

PHH Continues to Sell Servicing Rights Ahead of Sale to Ocwen

In its earnings statement, PHH notes that Ocwen can terminate the acquisition if “available cash on hand falls below a prescribed amount…”


August 7, 2018 - IMFnews

Lobbying on the GSE Issue Moves from Congress to the Executive Branch

Earlier this year, Treasury Secretary Steven Mnuchin told the Senate Banking Committee he has the authority to restructure Fannie and Freddie without any change in law.


August 7, 2018 - IMFnews

Nonbank Market Share of Ginnie MSRs: 59.9 Percent and Growing

Wells Fargo’s agency servicing volume dropped by $9.4 billion…


August 6, 2018 - IMFnews

Wells Fargo Says It’s ‘Very Sorry’ About Calculation Error that Led to Foreclosures

Wells Fargo: “As a result of this error, approximately 625 customers were incorrectly denied a loan modification..."


August 6, 2018 - IMFnews

Secondary Market in Servicing Rights Gained Momentum in 2Q18

In 2Q18, there was a huge increase in bulk Fannie MSR transfers…


August 3, 2018 - Inside Mortgage Trends

AI Slowly Penetrating Mortgage Servicing

Mortgage environments run by artificial intelligence? Not yet – but close. Artificial intelligence and automation are helping mortgage servicers streamline servicing and reduce costs but may be costing some humans their jobs, according to analysts with Standard & Poor’s Global Ratings team. However, there is no cause for alarm because human power remains vital to the mortgage process. The day AI completely takes over mortgage servicing is still very far off, analysts said ...


August 3, 2018 - Inside Mortgage Trends

Mortgage Servicers Need a Tech Boost

Mortgage servicing is lagging behind other financial services in adopting digital capability and it is impairing borrower satisfaction, according to the results of the 2018 U.S. Primary Mortgage Servicing Satisfaction Study from J.D. Power. “The challenges the servicers have are the bar keeps rising and expectations rise particularly when it comes to digital interaction,” said Craig Martin, senior director of the mortgage practice at J.D. Power. “The majority of consumers coming in or ...


August 3, 2018 - Inside Mortgage Trends

Secondary Market in Servicing Rights Gained Momentum in Second Quarter

Sales of agency mortgage servicing rights were up in the second quarter, mostly as a result of heavier coissuance volume, according to an exclusive new Inside Mortgage Trends analysis and ranking. Servicing rights on $129.57 billion of agency mortgages changed hands during the second quarter, up 6.4 percent from the first three months of the year. The data are culled on Fannie Mae, Freddie Mac and Ginnie Mae mortgage-backed securities ... [Includes three data charts]


August 3, 2018 - IMFnews

What We’re Hearing: Fannie Mae’s Next CEO Might Be… / Thanks Congress / Amazon Still in the Hunt? / The Top Gainer: Fairway Independent Mortgage / Talking to Ed DeMarco / Gateway Gets a New CEO

No wonder why Fannie and Freddie topped Business Insider’s list of the most profitable companies per employee…


August 3, 2018 - IMFnews

PennyMac Boosts Profit, Originations, Servicing – and Unveils Corporate Reorganization

The lender/servicer also unveiled plans for a corporate reorganization that could triple the firm’s market capitalization rate…


August 2, 2018 - Inside Mortgage Finance

MBA Urges Federal Banking Regulators to Finalize Rules Raising the Cap on MSRs that May Count Towards Tier 1

The Mortgage Bankers Association recently asked the federal banking agencies to provide an update on a proposal to increase the amount of mortgage servicing assets that a bank may count to-wards Tier 1 capital. In a letter to the Office of the Comptroller of the Currency, Federal Deposit Insurance Corp. and the Federal Reserve, the MBA reiterated its support for the agencies’ proposal to raise a recommended 25 percent cap on the amount of mortgage servicing assets that may be ...


August 2, 2018 - Inside Mortgage Finance

Nonbanks Creep Toward 60 Percent of Outstanding Ginnie Servicing and Gain Ground in GSE Market

Depository institutions still have responsibility for most agency mortgage servicing, but nonbanks continued to gain share during the second quarter, according to a new Inside Mortgage Finance analysis of agency mortgage-backed securities data. As of the end of June, nonbanks serviced $2.887 trillion of single-family loans in MBS pools is-sued by Fannie Mae, Freddie Mac and Ginnie Mae. That was up 2.8 percent from March and represented ... [Includes two data charts]


August 2, 2018 - Inside Mortgage Finance

Mortgage Servicing Market Continues Deconsolidation During 2Q18 as Middle Tier Players Keep Growing

All five of the top players in the single-family mortgage servicing business reported slight de-clines in their portfolios during the second quarter, according to an exclusive Inside Mortgage Finance ranking and market analysis. As a group, the top five participants reported $3.661 trillion in mortgage servicing at the end of June, an 0.7 percent decline from the previous quarter. Although the Federal Reserve’s official tally of home mortgage debt outstanding ... [Includes two data charts]


August 2, 2018 - IMFnews

Servicing Market Continues Deconsolidation Trend, Big Banks Keep Slipping

The biggest gainer among the top 50: New American Funding in California…


August 1, 2018 - IMFnews

OCC Tells Fintech Firms It’s Open for Business, Send In Your Charter Apps…

There are dozens of residential lenders that use the phrase “fintech” to describe their activities, but whether they will file to become a depository is a different matter.


July 31, 2018 - IMFnews

Nonbank Capital Becoming Increasingly Important, but IPO Market Still Weak

In the world of finance, it’s not where you’ve been – but where you’re going.


July 30, 2018 - IMFnews

FHA/VA Serious Default Rates Down in 2Q18

FHA officials are worried about rising concentrations of higher-risk loan characteristics…


July 27, 2018 - Inside FHA/VA Lending

Court OKs Settlement for Post-Payment Charges on FHA Loans

The U.S. District Court for the Southern District of Iowa earlier this month granted preliminary approval of an $11.2 million settlement in a proposed class-action against national bank JPMorgan Chase. According to the complaint filed in 2016, Chase charged and collected interest on FHA-insured loans that paid off early. Chase was either the lender or the servicer of the loans. The lawsuit, Audino et al. v. JPMorgan Chase Bank, alleges that the bank breached the promissory notes underlying the class’s FHA-insured home loans when it collected post-payment interest without providing disclosures to borrowers who made a prepayment inquiry, request for payoff figures, or tender of prepayment. Plaintiffs allege that the bank did not use the proper FHA form to provide the disclosures to consumers. Chase denies any wrongdoing and neither admits nor concedes any actual or potential fault or liability. The bank also denies it was ...


July 27, 2018 - Inside FHA/VA Lending

Over Half of Flawed FHA Loans were Cured Year-Over-Year, HUD Reports

More than half of FHA-insured loans analyzed for material defects have been mitigated over a 12-month period, according to the Department of Housing and Urban Development’s latest quarterly loan-review analysis. Approximately 31,396 loans were analyzed over four quarters for possible defects, beginning in the third quarter of 2017 and ending the second quarter of 2018. Approximately 59.8 percent of the reviewed loans were initially deemed unacceptable. HUD data showed that most, 54.1 percent, of the loans reviewed have been successfully mitigated. The report provides a quarter-by-quarter snapshot of the FHA’s Loan Review System results. Net defects represent outcomes after lenders have implemented methods and techniques to mitigate or remediate the initial findings. Of the reviewed loans, 24.7 percent were conforming while 15.5 percent were found to be deficient. About 0.2 percent of loans were ...


July 27, 2018 - Inside FHA/VA Lending

HUD IG Lauds Mortgagee Review Board for Continued Improvement

The Mortgagee Review Board’s improvement of its processes and use of administrative actions has greatly eased its backlog of lender recertification cases, according to the Department of Housing and Urban Development’s internal watchdog. An audit by HUD’s inspector general found a vastly improved enforcement of MRB mandates and application of penalties to lenders compared to previous findings. An analysis of the board’s FY 2016 activities found, among other things, that 19 lenders with the same violation received the same penalty. The report attributed the change to the board’s decision to assign staff to implement recommendations in the IG’s evaluation report in May 2009. The 2009 audit raised concerns about the speed of the MRB process, the number of cases on which the board rules, and the magnitude of penalties it levies. The MRB rules on cases against FHA lenders where there ...


Poll

With mortgage production down noticeably this year from 2017, how many lenders might disappear via M&A or failure during the next 12 months?

10% or less. It’s not that bad out there.

17%

11% to 25%. It’s a challenging market.

48%

25% to 40%. It’s going to be very ugly.

24%

No opinion.

11%