Mortgage Servicers

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

October 19, 2018 - Inside FHA/VA Lending

CMLA Seeks New Language for Bill Addressing ‘Orphan’ VA IRRRLs

Community mortgage lenders are asking the U.S. Senate to consider with caution before voting on legislative language passed recently by the House of Representatives to address “orphan” VA streamline refinance loans. Specifically, the Community Mortgage Lenders of America asked the Senate to step back and allow some time for substitute language to be presented with input from the industry and the Department of Veterans Affairs. At issue is the wording in H.R. 6737, the Protect Affordable Mortgages for Veterans Act of 2018. The bill fixes a technical issue that prevented VA lenders from pooling certain VA Interest Rate Reduction Refinance Loans in Ginnie Mae mortgage-backed securities pools. Approximately 2,500 VA refi loans were affected by an inconsistency between the loan seasoning guidelines issued by Ginnie in late 2016 and provisions in the ...

October 19, 2018 - Inside FHA/VA Lending

Prepay Speeds Remain a Concern for Ginnie Mae, Overseas Investors

Ginnie Mae has made considerable progress in dealing with rapid prepayments on VA loans but prepayment speeds on Ginnie mortgage-backed securities in general continue to annoy investors. Prepay speeds on Ginnie MBS are now at the lowest since 2014 but it is not enough for agency Executive Vice President Maren Kasper to feel confident as she addressed the annual convention of the Mortgage Bankers Association this week. “Our prepayment issue is not solved,” said Kasper, as she spoke on a panel with representatives of government-lending programs. The agency continues to hear from investors about the problem, she said. Kasper cited two instances where Ginnie officials were summoned to meetings in China and New York to explain the prepayments to irate investors. They threatened to stop purchasing Ginnie bonds, she said. Kasper declined to say how bad the ...

October 19, 2018 - Inside FHA/VA Lending

Government Mortgage Programs Focus on Tech Platform Upgrades

Information technology improvement is the top priority of government lending programs in the coming months and into 2019. Agency representatives at the Mortgage Bankers Association’s annual convention in Washington, DC, said policy changes are in the works to enhance and improve operations, compliance and customer service. FHA Commissioner Brian Montgomery, who joined the agency four months ago, said IT modernization is his primary concern. A state-of-the-art IT system and advanced data analytics are needed to manage FHA exposures effectively, he said. Montgomery made clear FHA has no plans to build a proprietary system but is considering the idea of shared technology, possibly with VA and USDA; something based on Fannie Mae’s and Freddie Mac’s systems; or some off-the-shelf software. In his view, a modern IT system would have automated underwriting that provides ...

October 19, 2018 - Inside FHA/VA Lending

Ginnie Mae to Require Servicer, Credit Ratings for Largest Issuers

Participants in Ginnie Mae’s single-family mortgage-backed securities program may expect new policy changes, including servicer and credit ratings for the largest issuers, clarification of “appropriate sources of liquidity” and other financial requirements. The changes come as issuer liquidity continues to be a primary concern for Ginnie Mae, particularly with nonbanks now the dominant segment in the single-family MBS program. “We’re working on those policies right now,” said Leslie Meaux Pordzik, Ginnie’s acting senior vice president, Office of Issuer and Portfolio Management, at the Mortgage Bankers Association’s annual convention in Washington, DC, this week. Nonbanks account for nearly two-thirds of Ginnie MBS issuance and approximately 75 percent of FHA and VA lending. Nonbanks serviced a record 61.1 percent of outstanding Ginnie single-family MBS at the end of the ...

October 19, 2018 - Inside FHA/VA Lending

FHA, VA Delinquencies Tip Slightly Higher in 3Q18 GNMA MBS Pools

The amount of single-family Ginnie Mae mortgage servicing rights increased a modest 0.9 percent during the third quarter, according to a new analysis and ranking by Inside FHA/VA Lending. Some $1.858 trillion of Ginnie mortgage-backed securities were outstanding at the end of September, a 6.2 percent gain over the previous 12 months. Loans guaranteed by the VA continued to be the fastest growing segment of the Ginnie market. Volume was up 1.3 percent from the end of June, hitting $630.9 billion, an 11.0 percent increase from the same time last year. The FHA segment remained far bigger: $1.114 trillion at the end of the third quarter. However, its growth rate has been slower: 0.7 percent from June and 3.9 percent compared to September 2017. Loan performance deteriorated slightly in both programs. Some 92.9 percent of FHA loans were current at the end of September, down from ... [Charts]

October 19, 2018 - IMFnews

What We’re Hearing: One Last Criticism from Jeb Hensarling Regarding the FHFA / In Agreement on 80 Percent / Departing Fannie, Freddie Directors May Pose a Challenge / Two Major Concerns: Originations and Profit Margins / Plaza Home Wants AEs / Bill Ashmore’s New Job?

The FHFA IG says "a number" of director positions at Fannie and Freddie are set to expire: "Changes in leadership can lead to a lack of attention to internal controls..."

October 19, 2018 - IMFnews

The Money Source Takes Aim on Subservicing

TMS President Ali Vafai said there’s a huge “void” of subservicers that can effectively handle high-touch product, especially Ginnie Mae receivables.

October 18, 2018 - IMFnews

Short Takes: BCFP, Not CFPB / At MBA, Standing Room Only for Mick Mulvaney / Annaly Readies Non-QM MBS / A Warehouse Securitization Deal for loanDepot / Cash is King

An affiliate of Annaly Capital Management is preparing to issue a $384 million mortgage-backed security stocked with non-qualified mortgages and loans for investment properties…

October 18, 2018 - Inside Mortgage Finance

FHFA, GSEs Launch Central Source of Translated Home Loan Documents in Spanish, More Languages to Come

As part of a multi-year language access plan, the Federal Housing Finance Agency and the government-sponsored enterprises this week introduced the first phase of a mortgage translation clearinghouse to better serve Spanish-speaking borrowers.

October 18, 2018 - Inside Mortgage Finance

Agency Mortgage-Servicing Market Grew Modestly in 3Q18 as Nonbanks Continue Amassing Market Share

The agency mortgage-servicing market continued to grow at a steady pace during the third quarter of 2018, fueled by strong purchase-mortgage originations, according to an exclusive ranking and analysis by Inside Mortgage Finance. [Includes two data charts.]

October 18, 2018 - IMFnews

Fitch Faults Other Rating Services for AAA Grade on Galton’s Non-Agency MBS

The three rating services noted the unique treatment of unpaid interest in their presale reports…

October 18, 2018 - IMFnews

Agency MSR Market Grew Modestly in 3Q18 as Nonbanks Continued Their March Forward

Fun fact: Nonbanks went over the 60.0 percent threshold in Ginnie Mae market share during the third quarter.

October 17, 2018 - IMFnews

Short Takes: What Will Ben Carson Cut? / GSE DTI Ratios Too High? / A Woman May Head the FHFA / Nomura Settles with DOJ / Strong Earnings from MGIC / Needed: Some CFPB Guidance

Budget cuts coming to HUD?

October 17, 2018 - IMFnews

A Slight Gain in Originations for U.S. Bank in 3Q18

Loan production increased at U.S. Bank but mortgage revenue declined…

October 17, 2018 - IMFnews

Ginnie Mae Terminates 360 Mortgage Group from Program

As IMFnews went to press, multiple telephone messages and emails to 360 Mortgage had not been returned.

October 17, 2018 - IMFnews

Complaints Filed with the CFPB Fell by Double Digits in 3Q18

The three major credit reporting bureaus – Experian, Equifax and TransUnion – continued to rank first, second and third, respectively, in the number of complaints filed…

October 16, 2018 - IMFnews

Short Takes: Trump’s Point Man on GSE Reform: Yank Fannie and Freddie’s Charters / New 52-Week Lows / Ginnie Issuer Gets its Ticket Pulled / Uncle Sam is Spending Too Much Money (Again) / A Name Change for Ocwen?

Meanwhile, there was chatter at the MBA convention that Ginnie Mae had just yanked the ticket of one of its MBS issuers.

October 16, 2018 - IMFnews

MBS ‘Godfather’ Ranieri Agrees to Sell Servicing Company Selene

“It’s time to go,” said Ranieri...

October 16, 2018 - IMFnews

Mulvaney Tells MBA: CFPB to Define ‘Abusive’ Under UDAAP; Regulation by Enforcement is Over

CFPB chief Mick Mulvaney declared the regulation-by-enforcement approach done...

October 16, 2018 - IMFnews

MBA Panelists Express Grave Concerns about the Current Profit Picture

Ken Logan, managing director of warehouse finance for Wells Fargo Bank, noted that nonbanks need to know “not having cash matters.”

October 15, 2018 - IMFnews

Short Takes: GSE Pilot Hearing Postponed / An Opportunity to Gather Intelligence? / Freddie's Qualification Tool for Self-Employed Borrowers / GSE Duty-to-Serve Updates / New Hires for ComplianceEase, Element Funding

The Senate Banking Committee's review of GSE pilot programs will have to wait...

October 15, 2018 - IMFnews

Incenter, Phoenix Capital Out with New MSR Auction Notices

IMA described the selling originator as an “independent mortgage banker with strong net worth...

October 15, 2018 - IMFnews

Mortgage-Hungry Insurance Conglomerate Hits the Pause Button on M&A as Grand Jury Convenes

Eli Global’s mini-mortgage empire includes lender/servicer Castle & Cooke, wholesaler Western Bancorp, Prime Mortgage and a warehouse lending division called CapLoc…

October 12, 2018 - IMFnews

What We’re Hearing: A Cyclical Business / What Will Treasury’s Craig Phillips Say about the GSEs? / Advice From loanDepot’s Anthony Hsieh / Unsolicited Resumes from Production Employees / Jim Malloy Departs Impac Mortgage After 15 Years / PennyMac’s First CRT Deal / A New Hire at Home Point

Anthony Hsieh's advice for the mortgage industry: Start selling...

October 12, 2018 - IMFnews

Wells Fargo Reports a Decline in Home Lending for 3Q18. A Small Gain at JPM

JPM and Wells do not use loan brokers, avoiding the wholesale channel. Both have large warehouse lending programs and acquire mortgages from the nonbanks they also finance.

October 11, 2018 - IMFnews

Short Takes: Why Stocks Need to Come Down / Unwinding the Massive Tax Cuts / President Hickenlooper? / Capital Alpha Weighs In / Behind the Scenes at Wells Fargo / New Hires for DIMONT

The massive tax cuts the president and GOP bestowed on the nation late last year have spurred economic progress. It’s hard to argue with that, but...

October 11, 2018 - IMFnews

Mortgage Rates Near 5 Percent. Analyst Habib Says Keep an Eye on the 10-Year Treasury

Habib told IMFnews that if yield on the benchmark breaks 3.25 percent it could quickly shoot up to 3.63 percent…

October 10, 2018 - IMFnews

Short Takes: Michael Bright, the Next FHFA Director? / Waiting on Senate Confirmation (Still) / A Former GSE Exec and The Play Set Scandal / Sears and Fairholme / HSBC Settles with DOJ / A New Hire at CMG Financial

HSBC will pay $765 million to settle charges brought by the Department of Justice...

October 9, 2018 - IMFnews

Short Takes: Castle & Cooke? / The Fannie Mae Connection / Frater, a Good Choice to Head Fannie / LendingHome Surpasses the $3B Mark in FnF Production / NDA Hires Clayton Executive

Fix-and-flip lender LendingHome, San Francisco, has surpassed the $3 billion market in originations...

October 9, 2018 - IMFnews

Mortgage Analysts Look Into Their Crystal Balls and Don’t Like What They See

Analyst Henry Coffey: “It is worth noting, given expected home price appreciation, that a flat mortgage market should translate into a 4 percent or greater decline in actual mortgage unit count.”

October 9, 2018 - IMFnews

The M&A Roundup: Lots of Chatter, Not a Lot Getting Done (Yet)

Meanwhile, the largest potential deals looming over the market continue to be Ditech Financial and loanDepot…

October 8, 2018 - IMFnews

Fannie Names Former Berkshire Hathaway Executive Hugh Frater Interim CEO

Frater was also executive vice president at PNC Financial Services...

October 8, 2018 - IMFnews

Short Takes: Waiting on a Client / Layoffs at Eli Global? / Bonuses: Based on Volume or Profits? / New Penn Rolls Out New Non-QM Loan / NewDay Hires a Former Governor

One source familiar with Eli Global’s mortgage operations said layoffs have occurred at the company’s mortgage unit...

October 8, 2018 - IMFnews

Mortgage Brokerage Firms Slash Jobs. More Carnage to Come?

With originations expected to fall, lenders of all different stripes are carefully examining their staffing needs…

October 5, 2018 - Inside FHA/VA Lending

Around the Industry

FHA Issues Waiver of Property Inspections in Disaster-Stricken California Counties. FHA has issued a waiver of its timing policy for completing property inspections prior to closing or endorsing a loan for FHA insurance. The waiver is in effect in presidentially declared major disaster areas in Lake and Shasta Counties, CA, that were ravaged by wildfires and high winds. FHA believes that the wildfires and high winds have stabilized so as not to cause any further damage to properties, even though FEMA has not declared “all clear” in the affected areas. The waiver allows damage inspections to be completed after Oct. 2, for properties located in the PDMDA. NC Commissioner of Banks Amends State Reverse Mortgage Rules. The North Carolina Commissioner of Banks recently amended its ...

October 5, 2018 - Inside FHA/VA Lending

Poor Tracking of Partial Claims Jeopardized Future Collections

Inadequate loan-servicing controls put the Department of Housing and Urban Development at risk of not being able to collect $6 million in partial claim notes, an inspector general audit revealed. The audit found that HUD’s National Servicing Center did not do a good job tracking partial claim notes for future collection. More specifically, NSC did not always enter partial claim notes and lender payments into its tracking system to ensure that note and mortgage documents supported the partial claim notes. The audit was triggered by an earlier IG pre-audit analysis, which found that partial claim notes may not have been properly uploaded in HUD’s Single-Family Mortgage Asset Recovery Technology (SMART) tracking system. HUD data showed there were 407,984 partial claims between Jan. 1, 2013, and Aug. 31, 2017. The department reviewed 695 non-sampled FHA loans with partial ...

October 5, 2018 - Inside FHA/VA Lending

HECM Statute Does Not Disallow Lender’s Legal Right to Foreclose

The federal statute that authorized the Department of Housing and Urban Development to establish the Home Equity Conversion Mortgage program addresses only HUD’s authority to insure reverse mortgages and not the lender’s contractual right to foreclose, the U.S. Court of Appeals for the Eleventh Circuit has ruled. Affirming the district court’s decision in The Estate of Caldwell Jones, Jr., Executrix Vanessa Jones and Leah Grace Jones, Minor v. Live Well Financial Inc., the circuit court determined that the HECM statute did not prevent foreclosure pursuant to a reverse-mortgage contract originated before Aug. 4, 2014, even if the non-borrowing spouse continued to live in the mortgaged property. The question before the court was whether the statute can be read broadly to prevent foreclosure after the borrower’s death and prevent the non-borrowing spouse from being ejected from the ...

October 5, 2018 - Inside FHA/VA Lending

FHA Insurance Fund Hit Hard by Needless Claim Payments, Costs

Mortgage servicing delays have caused the Department of Housing and Urban Development to pay a whopping $413 million for unnecessary interest and other expenses. The payment put a major dent on the FHA Mutual Mortgage Insurance Fund and its ability to pay other claims or reduce FHA mortgage-insurance premiums, according to a report from the HUD inspector general. The amount covered interest payments and other costs on 27,634 preforeclosure claims over a five-year period. The costly setback could have been avoided had lenders completed servicing chores on defaulted FHA loans within their prescribed periods, the IG said. Although serviers were to blame, HUD reimbursed them through FHA insurance claims. The IG analyzed 100,077 preforeclosure claims paid from Aug. 1, 2012, through July 31, 2017. Auditors identified 30,061 claims that had ...

October 4, 2018 - Inside Mortgage Finance

Private Mortgage Insurers Set to Comply with PMIERs Update, Analysts See Little Impact

Mortgage insurance companies reported they expect to be in compliance with updates to private MI eligibility requirements for doing business with Fannie Mae and Freddie Mac that were released late last week. The final version of PMIERs 2.0 will take effect on March 31, 2019, and analysts agree that other than a few tweaks, they aren’t terribly different than the original proposal. Since 2015, the U.S. Mortgage Insurers said, PMIERs have nearly doubled the amount of capital each mortgage insurer ...

October 4, 2018 - Inside Mortgage Finance

Need MSR Financing? Go See Freddie Mac – It Can Lend Up to $1 Billion and at a Deep Discount

As prospects wane in warehouse lending, some commercial banks are pondering a move into financing mortgage servicing rights but have a major concern: Freddie Mac, the government-controlled mortgage giant that’s in the midst of a $1 billion pilot program. During a recent Congressional oversight hearing, Federal Housing Finance Agency Director Mel Watt for the first time revealed the size of the MSR-financing pilot, saying it’s needed because nonbanks “do not have access to ...

October 4, 2018 - IMFnews

Eli Global Founder the Subject of Federal Subpoenas. A Mortgage M&A Deal was in Progress

As press time, Lindberg’s spokesman, Chuck Norman of S&A Communications, had not returned several emails and telephone calls regarding the subpoenas.

October 3, 2018 - IMFnews

Short Takes: How High Might the Yield on the 10-Year Go? / Waiting on a Stock Market Correction / Deficits Don’t Matter Anymore (For Now) / A New Office for Better Mortgage / Richey Buys Two / Freddie Promotes Former Wells Fargo Exec

The stock market hit a new high. What possibly could go wrong?

October 3, 2018 - IMFnews

CMLA Criticizes Brookings Report on Nonbank Mortgage Firms

Rob Zimmer of CMLA: “The organization [Brookings] is now pushing a deeply flawed report that uses veterans and active-duty personnel as pawns…”

October 3, 2018 - IMFnews

Credit Suisse, New Residential Prep Non-Agency MBS Backed by Seasoned Mortgages

In the New Rez deal, the mortgage have seasoned for more than 13 years, on average…

October 2, 2018 - IMFnews

Short Takes: Top-Ranked Subservicer Hires Nonbank Execs / Soon to be One: Ocwen and PHH / NAR Bolsters its Government Affairs Staff / One Criticism of Jeb / California, the Golden GSE State

One criticism of Hensarling is that his conservative ideals prevented him from shaping a consensus bill to reform Fannie Mae and Freddie Mac...

October 2, 2018 - IMFnews

GSE Shareholders Take Solace in Partial Win Against FHFA, Treasury

Investors Unite: “Lamberth’s ruling does not mean reimbursement checks are on the way…”

October 2, 2018 - IMFnews

One Reason FHA Premiums Won’t be Cut? Slow Servicers…

In 10 cases, the servicing process was delayed by more than two years...

October 2, 2018 - IMFnews

MSR Sales Were Slow in 3Q18, but Pace May Quicken as Yearend Approaches

One fact that all dealmakers can agree on is that MSR pricing is the best it’s been all decade…

October 1, 2018 - IMFnews

Just Days Away From Closing on PHH Deal, Ocwen Sees a Former Executive Charged with Insider Trading

During his tenure at Ocwen, Ziengenfuse was in charge of managing the company’s “strategy” with Fannie Mae, Freddie Mac and Ginnie Mae receivables, the SEC said.

October 1, 2018 - IMFnews

Bank MSR Values the Highest They’ve Been Since 2007

Banks valued these servicing rights at $46.4 billion, $5.6 billion more than in March…


Who "owns" the mortgage customer that’s brought to a wholesale lender through a loan broker?

The broker. It’s his/her client.


The wholesale/table funder. They’re taking the financial risk.


The broker, but only for the first year. After that, the borrower is fair game.


Hard to answer. It’s a complicated issue.