Mortgage Servicers

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

July 21, 2017 - Inside FHA/VA Lending

Millennials Seeking to Buy Homes In Affordable Markets, Data Show

Affordability and job availability are driving millennials to seek homes in more affordable markets, particularly in the upper Midwest, according to Ellie Mae data for the month of May. Ellie Mae’s Millennial Tracker, which monitors millennial mortgage applications during specific times, found that the higher percentages of loans made to millennial borrowers are in Hutchinson and Austin, MN, and Wahpeton and Williston, ND. Anniston-Oxford-Jacksonville, AL, rounded out the top-five markets. Ellie Mae defines millennials as applicants born between 1980 and 1999. Data showed that 48 percent of millennial borrowers who closed loans in May were single. In Hutchinson, for example, the majority of borrowers were single men. “This suggests millennials may be embracing homeownership in these areas for reasons other than what we have historically seen, which was family formation,” explained ...

July 21, 2017 - Inside FHA/VA Lending

RHS Spells out Review Procedures For Approved Lenders, Servicers

The U.S. Department of Agriculture’s Rural Housing Service has clarified procedures for reevaluating approved lenders’ and servicers’ eligibility under the RHS Single Family Housing Guaranteed Loan Program. The guidance also provides procedures for updating lender information. The RHS intends to review and document lender eligibility in accordance with regulation and program requirements to protect government assets and minimize taxpayer losses. Office of Management and Budget regulations require federal agencies to reevaluate and record lender and servicer eligibility every two years. “For the [USDA single family loan guarantee program], it requires making sure that lenders and servicers participating in federal credit programs meet all applicable financial and program requirements,” wrote Richard Davis, acting RHS administrator. To meet the requirements, lenders must ...

July 21, 2017 - Inside FHA/VA Lending

MRB Suspends Lender’s Authority To Originate, Service FHA Loans

The Department of Housing and Urban Development’s lender disciplinary arm, the Mortgagee Review Board, has suspended a Pennsylvania FHA lender from originating or underwriting any new agency-insured loans. In addition, HUD’s enforcement center suspended owner John Seckel from doing business with the federal government. According to HUD, Seckle Capital of Newton, PA, and its owner submitted statements and certifications purporting to show the firm was properly audited by independent certified public accountants, when, in fact, it was not. The MRB said Seckel and his firm engaged in a “years-long pattern” of deceit and falsehoods. The action is the result of HUD’s ongoing effort to hold the mortgage industry accountable for the loans it originates, underwrites or services. According to HUD’s Neighborhood Watch website, Seckel Capital has a compare ratio of 164 percent. Of the 557 loans the ...

July 21, 2017 - Inside FHA/VA Lending

HUD Note Sales Program Operating With No Formal Procedures, Says IG

An internal watchdog audit alleges that the Department of Housing and Urban Development has been auctioning distressed notes to investors with no formal guidance or procedures in place. In a recent audit report, the HUD Office of the Inspector General said the department did not conduct rulemaking or develop standards for its single-family note sales program. The IG said it performed the audit due to the large amount of FHA claims paid on note sales as well as public concerns over the creation and administration of the program. In addition, the IG has never audited the program. In 2002, HUD referred to the initial note sales program as the Accelerated Claims Disposition Demonstration Program. The department later renamed it the Loan Sales Program, and subsequently to its current name: Distressed Asset Stabilization Program. DASP accepts assignment of eligible, defaulted single-family mortgage loans in ...

July 21, 2017 - Inside FHA/VA Lending

VA Still Gaining Ground in Growing Ginnie MBS Servicing Portfolio

The VA home loan guaranty program continued to grow faster than the FHA program during the second quarter of 2017, according to a new analysis and servicer ranking by Inside FHA/VA Lending. At the end of June, Ginnie Mae mortgage-backed securities pools included $548.04 billion of VA loans, a 3.3 percent increase over the previous quarter. Compared to a year ago, the volume of VA loans was up a hefty 15.6 percent. The $1.055 trillion of FHA loans in outstanding Ginnie MBS was still nearly twice the volume of VA loans. But the FHA total was up a more subdued 1.8 percent from March and by 5.4 percent from a year ago. One reason the VA market grows somewhat faster than the FHA is that it loses fewer loans to default. For starters, the VA delinquency rate is lower – 3.03 percent in the second quarter of 2017 vs. 5.52 percent for FHA. Over the past three and a half years, the ... [ Charts]

July 21, 2017 - IMFnews

What We’re Hearing: A Good Quarter for Angel Oak, MBS Plans for Citadel / Sprout Sprouting? / Freddie About to Make Splash in SFR Market? / Trump, the Russians (Soviets) and a Housing Solution? / Not-Happy Birthday: Dodd-Frank Turns Seven

A housing crisis in America? Maybe the Russians can help...

July 21, 2017 - IMFnews

New Legal Settlement Will Prove Costly to Ocwen

However, the legal settlement likely will ding sector quarter earnings by $34 millon to $36 million…

July 21, 2017 - Inside MBS & ABS

In Senate Hearing, Community Lenders Fight for Secondary Market Access, the ‘Cash Window’

Although reform of the government-sponsored enterprises is highly unlikely this year, community lenders went to Capitol Hill this week, testifying that equal opportunity in the secondary market and preserving the cash window are sacred tenets that cannot be compromised. At a GSE reform hearing late this week, Sen. Mike Crapo, R-ID, chairman of the Senate Banking Committee, called small lenders “fixtures in their communities” with local knowledge and expertise. “As we prepare to reform the system we must understand how small lenders access the market,” he said. Many community lenders access...

July 21, 2017 - IMFnews

CFPB Proposes ‘Substantive’ Changes to its Mortgage Servicing Rule

The good news for the industry here is that the CFPB is, once again, responding to the concerns of market participants…

July 20, 2017 - IMFnews

Short Takes: NYSE-Listed Firm Selling MSR Portfolio via MountainView / Former Ginnie Chief Tozer Heads to PennyMac / No Reason Given / Galante’s Ocwen Holdings / Earnings from Black Knight and MGIC

Former Ginnie Mae President Ted Tozer will join the board of PennyMac Financial Services, the nation's fourth largest home lender, in August.

July 20, 2017 - Inside Mortgage Finance

More Shoes Drop at Walter: Delisting of Stock Possible, Layoffs and Concerns About Its Debt Restructuring

It hasn’t been a pretty month for Walter Investment Management, the publicly traded parent company of the nation’s eighth largest servicer. And it could get even uglier by the time summer is out. Not only is Walter in danger of being kicked off the New York Stock Exchange – for having a share price of less than $1.00 for too many days – but investors appear to have given up on the company and the idea that a restructuring, now in progress, will yield positive results. If Walter is...

July 20, 2017 - Inside Mortgage Finance

Early Look at 2Q17 Lending: A Mixed Bag at Big Banks; Nonbanks like UWM are Bullish

The nation’s megabanks have started reporting second-quarter results, revealing a mixed bag when it comes to residential originations, according to a new analysis from Inside Mortgage Finance. The nation’s largest home lender, Wells Fargo, so far, has turned in the strongest performance of the group, funding $56.0 billion of product, a handsome 27.3 percent improvement from the first quarter of the year. Bank of America held its own with a 15.8 percent sequential improvement and U.S. Bank hiked its production game by a more modest 10.2 percent. And then there are...[Includes one data table]

July 20, 2017 - Inside Mortgage Finance

Ginnie Continues Leading Growth in Agency Servicing Market, Nonbanks Picking Up the Slack

The supply of single-family mortgage-backed securities issued by Fannie Mae, Freddie Mac and Ginnie Mae grew by 0.5 percent during the second quarter, according to an exclusive analysis and ranking by Inside Mortgage Finance. Total agency MBS outstanding rose to $6.258 trillion at the end of June, which does not include whole loans held in Fannie and Freddie portfolios or government-insured loans repurchased from Ginnie pools. The market was 4.2 percent bigger than it was at the midway point in 2016. Ginnie continues...[Includes two data tables]

July 20, 2017 - IMFnews

Ginnie Mae Continues to Lead the Pack in Agency Servicing Growth

Outstanding MBS servicing at Fannie actually declined slightly in the second quarter…

July 20, 2017 - IMFnews

A Tale of Two MSR Investors: Seneca’s End Draws Near, Pingora Slated for Sale Yet Again

The Seneca portfolio is so clean that it has attracted the interest of Chase, which hasn’t bought a bulk MSR package in years…

July 19, 2017 - IMFnews

Short Takes: A Bulk MSR Deal from MountainView / Proposed HUD Lender Fee Is Cut From Spending Measure / Invictus Readies Nonprime MBS Deal / A Promotion at loanDepot

Another nonprime MBS deal is ready to hit the market, this one from Invictus Capital Partners...

July 19, 2017 - IMFnews

Utah-Based Nonbank Buys Industry Vet’s First Mortgage of Oklahoma

A press statement on the sale included no production or servicing information for either company…

July 19, 2017 - IMFnews

2Q17 Results: A 10 Percent Gain in Originations for U.S. Bancorp

The bank’s servicing portfolio remained just about flat at June 30, coming in at $232.4 billion...

July 19, 2017 - IMFnews

Most Mortgage Gripes Plunge – Except for Loan Servicing

Specialty servicers Ocwen and Ditech Financial ranked third and fifth, respectively, in mortgage complaints during the first six months of 2017, according to Inside the CFPB.

July 18, 2017 - IMFnews

Short Takes: EverBank CEO Now the Head of LenderLive / Strong Volumes at Skyline / Refi Shops Hurting / Walter Files Layoff Notice on Irving Office / loanDepot Snatches Top LO from Guaranteed Rate

Walter Investment filed a WARN notice with the Texas Workforce Commission, saying it will close its Irving, TX, office and cut 437 workers...

July 18, 2017 - IMFnews

Walter’s Warehouse Lenders Show Patience – but for How Long?

In late May, Walter disclosed in an SEC filing that some of its previously issued financial statements could not be relied upon because of what it called an “accounting error.”

July 18, 2017 - IMFnews

Residential Production at BofA Rises 16 Percent; MSR Balances Continue to Fall

Compared to the same period a year ago, servicing balances have fallen by 19.5 percent.

July 17, 2017 - Inside the CFPB

Most Mortgage Complaints Plunge, But Gripes About Servicing Jump

Based on plunging consumer gripes sent to the CFPB, the mortgage market looks like it’s in great shape – with one glaring exception: mortgage servicing. According to a new analysis by Inside the CFPB of second quarter data from the bureau’s consumer complaint database, mortgage servicing saw a 17.5 percent jump in borrower grousing during the second quarter, but a milder 1.4 percent uptick from the first half of 2016. That latter level would be barely perceptible were it not in such stark contrast to the double-digit drop-offs seen in all other mortgage-related areas tracked by this publication. For instance, kvetching about loan modifications plummeted 81.5 percent from the first quarter of this year to the second, and [With exclusive data charts]...

July 17, 2017 - Inside the CFPB

JPMorgan Details Reforms Needed to Mortgage Servicing Regulation

JPMorgan Chase told the CFPB it supports the bureau’s mission of protecting consumers and recognizes that regulatory guardrails are necessary to make sure mortgage servicers adequately address consumers’ needs. “However, certain provisions of Regulation X [which implements the Real Estate Settlement Procedures Act] impose burdens on servicers that increase servicing costs and impact access to consumer credit without providing proportional benefits to consumers,” the servicer said. JPMorgan was one of the industry participants commenting on the CFPB’s proposal to start assessing the effectiveness of its mortgage servicing rules under RESPA. The financial institution went on to some of the problem areas in Reg X that still need to be addressed, one of which has to do with rules for loss...

July 17, 2017 - Inside the CFPB

Industry Suggests Improvements to Servicing Rule Assessment

Trade organizations representing the mortgage banking industry provided a number of important suggestions for the CFPB as it proceeds with a Dodd-Frank Act requirement to assess its mortgage servicing rules at the five-year mark. The first issue the American Bankers Association raised in this regard in its comment letter to the bureau was the scope of the assessment. “The CFPB should incorporate all of the servicing rules into its review, including the rules that implement the Truth and Lending Act and the amendments that the CFPB adopted to the servicing rules in 2016,” the ABA said – not just the rules promulgated under the Real Estate Settlement Procedures Act. The bureau also should take into account the rules’ effects upon consumers...

July 17, 2017 - IMFnews

Walter Now in Danger of Getting Kicked off the NYSE

Walter, the parent of Ditech Financial, said it expects to “acknowledge receipt” of the compliance violation and “notify the NYSE of its intention to seek to cure the deficiency…”

July 14, 2017 - Inside Mortgage Trends

Underwater Borrowers in Decline, Equity Rising

New research from Black Knight Financial Services finds that the underwater homeowner population has fallen to 1.8 million borrowers, dipping below 2.0 million for the first time since 2006. Researchers also expect “tappable equity” to hit a record high this summer, according to their new report on data from the first four months of 2017. “The steady upward trajectory of home prices continues to improve the equity positions of many homeowners,” said Ben Graboske, executive vice president ...

July 14, 2017 - Inside Mortgage Trends

Consumers’ Average Credit Score Hits Record High

The national average credit score tracked by Fair Isaac (FICO) recently reached a record high in April: 700. And the share of consumers seeking new credit is actually declining, according to an analysis by FICO. Ethan Dornhelm, a senior principal scientist in the analytic development group at FICO, noted that the average FICO score as of April was 10 points higher than the reading in October 2006, before the financial crisis. Average scores fell to 686 in October 2009 and have ...

July 14, 2017 - Inside The GSEs

FHFA Proposes New Federal Home Loan Bank Capital Requirements

The Federal Housing Finance Agency, although late to the game, is proposing new capital requirements for the Federal Home Loan Banks to comply with the Dodd-Frank Act. Other regulators have already implemented the Dodd-Frank Act provisions that shift capital requirements away from ratings. This proposed rule would carry over most of the existing regulation without any major change, but it would revise the credit risk component of the risk-based capital requirement, along with limitations on extensions of unsecured credit. Currently banks calculate credit risk capital charges and unsecured credit limits based on ratings issued by a nationally recognized statistical rating organization. But the proposed rule would require the banks to use their own internal rating methodology.

July 14, 2017 - IMFnews

What We’re Hearing: Fairholme’s Berkowitz: Watt Will Fix the GSE ‘Zero Capital’ Problem / What’s $5 Trillion Among Friends? / The Termination and Transfer Option / A Tale of Two Mortgage Giants / Renren and Sindeo?

According to Fairholme’s math, the GSEs earn over $15 billion a year, and taxpayers own 80 percent of the companies (via the senior preferred). Berkowitz values the senior stock at $100 billion…

July 14, 2017 - IMFnews

A 27 Percent Jump in Originations at Wells Fargo; JPM’s Volume Up Just 2.3 Percent

JPM reported mortgage banking income of $1.43 billion in the second quarter, off $103 million from the first quarter and down $495 million compared to 2Q16.

July 13, 2017 - Inside Mortgage Finance

CFPB Mortgage Servicing Rules Stabilized Market But Also Introduced Many Unintended Consequences

The mortgage servicing rules the Consumer Financial Protection Bureau promulgated in the wake of the mortgage market’s collapse brought much-needed stability to the loan servicing arena. But they also have had a host of unplanned side effects that continue to haunt the market to this day. That’s one of the prime takeaways from comments provided by some top lender/servicers and industry trade groups, in response to the CFPB’s announcement that it would begin its five-year assessment of its servicing rules as per the requirements of the Dodd-Frank Act. Wells Fargo said...

July 13, 2017 - Inside Mortgage Finance

Seneca’s End Draws Near as Company Prepares Exit From MSR Market; Pingora Slated for Sale, Yet Again

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...

July 13, 2017 - IMFnews

Short Takes: A Big Earnings Boost for Fannie and Freddie? / The Greenwich-Ameriquest Connection / IMA Selling GSE ‘Flow’ Package / Progress Ups its SFR MBS Deal / PHH Hires LenderLive Executive

The $5.5 billion (to be) paid by RBS should boost GSE earnings big time...

July 13, 2017 - IMFnews

CFPB Servicing Rules Stabilized Market, but Unintended Consequences Too

One negative effect: the costs required to service both performing and nonperforming loans have increased substantially.

July 13, 2017 - IMFnews

JPMorgan Chase Bidding on MSR Packages Again? Looks That Way…

The Seneca MSR portfolio is top heavy with California product…

July 13, 2017 - IMFnews

Wells Fargo’s Withholding of Funds from Non-Agency MBS Investors Prompts Action from Rating Services

The deals are the subject of a lawsuit filed by MBS investors alleging that Wells Fargo failed to perform its duties as trustee...

July 11, 2017 - IMFnews

Mortgage REIT Annaly Agrees to Sell MSR Unit Pingora to Bayview. No Servicing Rights Change Hands

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…

July 11, 2017 - IMFnews

Will Rep. Hensarling Deal on GSE Reform?

The big question: Will the Chairman of the House Financial Services Committee support an explicit government guarantee on conventional MBS?

July 10, 2017 - IMFnews

VRM Wins 10-Year Contract to Oversee REO, Service VA Loans

The deal was negotiated from a previous five-year contract that was awarded to VRM…

July 10, 2017 - IMFnews

Up for Grabs: $1.63 Billion of Fannie, Freddie, Ginnie Servicing Rights

According to the offering circular, the Ginnie receivables total $1.40 billion and carry an overall delinquency ratio of 6.60 percent.

July 7, 2017 - Inside FHA/VA Lending

FHA Provides Additional Guidance For Using New Loan Review System

The latest issue of FHA’s Lender Insight provides additional information to lenders regarding the new Loan Review System that was launched on May 15, 2017. FHA urged lenders to keep their contact information current in FHA Connection and in the Lender Electronic Appraisal Portal so that they receive automated system notifications on time. Also, lenders should review current FHAC user access for appropriate roles, the agency added. Lenders’ in-house FHAC application coordinators are authorized to grant access to, and assign roles within, the LRS. Having the correct roles should enable users to access the system from the FHAC menu, the FHA said. In addition, the lender must take a photo of any error messages that might appear on screen before contacting the FHA Resource Center, the agency advised. Be prepared to provide the date and time of the attempted login, user ID, lender user ID and the ...

July 7, 2017 - Inside FHA/VA Lending

VRM Wins 10-Year Contract to Oversee REOs, Service VA Loans

The Department of Veterans Affairs has awarded a 10-year contract to VRM Mortgage Services to manage VA’s real estate-owned assets and service its loan portfolio. The contract requires VRM, a 10-year-old California-based real estate services contractor, to manage, market and sell VA REO properties, and provide other real estate services as well. The new contract was negotiated from a previous five-year contract that was awarded to VRM when VA consolidated both REO management and portfolio servicing into a single contract.VA has often sold conveyed properties with seller loan financing, known as vendee loans, to help keep distressed vet homeowners in their homes. Vendee lending is an arrangement whereby a buyer uses VA financing to purchase a property in the agency’s REO inventory. “Once a loan is sold under the vendee financing program, we would monitor that loan as well as ...

July 7, 2017 - Inside FHA/VA Lending

DOJ, HUD Expand FCA Scrutiny to FHA Servicing, Reverse Mortgages

Mortgage compliance experts are cautioning FHA servicers to tread carefully around loss mitigation, annual certifications and reverse mortgages, which could be a potential minefield for False Claims Act lawsuits. While FHA lenders’ exposure to FCA risk remains, the Department of Justice and the Department of Housing and Urban Development have increased their scrutiny of FHA servicing practices for potential violations, according to Phil Schulman and Kristie Kully, both partners in Mayer Brown’s Washington office. In a recent podcast, Schulman warned of increasing DOJ and HUD scrutiny of FHA servicing practices in the last 18 months, a worrisome shift from the origination side, which has seen an estimated $5 billion in settlements and penalties since 2011 for violations of the FCA and the Financial Institutions Reform, Recovery and Enforcement Act. Since 2008, mortgagees participating in ...

July 7, 2017 - Inside Nonconforming Markets

Prepayments on Wells’ Jumbos Relatively High

The prepayment rate on vintage jumbo mortgages serviced by Wells Fargo is outpacing the industry average by a wide margin, according to an analysis by Bank of America Merrill Lynch. A lower level of loan modifications by Wells appears to be driving the trend. BAML noted that prepayment rates on jumbo mortgages in vintage non-agency mortgage-backed securities have followed a stable trend in the last three years. However, since 2013, Wells-serviced jumbo fixed-rate ...

July 7, 2017 - IMFnews

What We’re Hearing: Quietly Moving Up in the Ranks: Amerihome / California is Beautiful but is it Any Place to HQ Your Mortgage Shop? / No to NYC and SF (Too Expensive) / GSEs Ready to Pounce in SFR?

If you’re opening a new mortgage company it stands to reason that the two least likely places you’d pick for your headquarters are New York City and San Francisco.

July 7, 2017 - Inside MBS & ABS

PennyMac Alters Repo Pact with Credit Suisse to Increase Funding Capacity for New Loans, MSRs

PennyMac and Credit Suisse are revising two master mortgage repurchase agreements to increase the lender’s funding capacity for new loan originations and purchases of mortgage servicing rights, the company disclosed in a recent filing with the Securities and Exchange Commission. In June, PennyMac agreed to revised terms of its master purchase agreement to increase temporarily the maximum committed purchase price to $943 million from $700 million. The amended agreement allows...

July 7, 2017 - IMFnews

State Agencies Cite Nonbank Servicers, Raise Compliance Concerns About Shift to Purchase Lending

Roughly 36 states and 104 state examiners participated in the coordinated mortgage exams…

July 7, 2017 - IMFnews

Employment Reading: With Purchase-Money Lending on the Rise, Mortgage Hiring Increases

According to interviews conducted by Inside Mortgage Finance, several large nonbanks continue to hire, including Amerihome, Quicken Loans, and United Wholesale Mortgage, among others.

July 6, 2017 - Inside Mortgage Finance

CFPB Reassures Servicers There Will Be No Repercussions for Violations of Early Implementation of Revised Servicing Rule

Mortgage lenders will not be subject to supervisory or enforcement actions for violations of the early implementation guidance for the revised 2016 mortgage servicing rule, according to the Consumer Financial Protection Bureau. The CFPB issued “non-binding” policy guidance last week to allay lenders’ fear of being penalized if they fail to implement the 2016 servicing amendments up to three days early, said industry attorneys. Issued in August last year, parts of the rules take effect on Oct. 16, 2017, and April 16, 2018. Technically, the “relief” applies...


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