Mortgage Servicers

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

April 23, 2018 - IMFnews

PennyMac Executive Chairman Stan Kurland Took Home $9.5M in 2017

Last year, PennyMac, a publicly traded real estate investment trust, earned $102.5 million in 2017, a 35 percent improvement from the year before.


April 23, 2018 - IMFnews

M&A Mania is Hitting the Mortgage Vendor Market

Earlier this month, Stone Point Capital bought due diligence advisor American Mortgage Consultants for an undisclosed sum…


April 23, 2018 - IMFnews

VA’s Plan to Make VALERI a Fully Operational AUS Well Underway

One of the goals of the conversion project is to improve program performance…


April 20, 2018 - Inside FHA/VA Lending

Aging Housing Stock Increases Demand for VA Alteration Loans

Lenders will now be able make VA loans to veterans who wish to purchase or refinance a home that needs alteration or repair, under new guidance issued by the VA. According to the VA, it has received inquiries from lenders that have expressed interest in originating and processing loans to finance home alteration and repair. The agency noted that the aging housing stock in the U.S. has spurred an increased demand for such loans. Due to their physical condition, older homes are often sold as “cash or conventional financing,” which immediately excludes VA financing and deprives veterans the opportunity to use their VA benefit. The new policy guidance makes the VA guaranty available to lenders looking to finance home alteration, repair, renovation and improvement. It also allows improvements to be included in the value and completed after the loan is closed. The lender disburses the loan proceeds to the ...


April 20, 2018 - Inside FHA/VA Lending

House Bill Introduced to Ensure Compliance with Loss-Mit Rules

Legislation was introduced this week in the House Financial Services Committee that would strengthen oversight of FHA mortgage servicers to ensure their compliance with the agency’s loss-mitigation requirements. The FHA Foreclosure Prevention Act of 2018 (H.R. 5555) would require the Department of Housing and Urban Development to conduct servicer oversight, including sampling, compliance reviews, and direct information collection from borrowers whose files were sampled. “A decade after the devastating foreclosure crisis, we continue to see significant problems with the servicing of FHA loans that unnecessarily put homeowners at risk of foreclosure,” said Rep. Maxine Waters, D-CA, ranking member on the committee and sponsor of the bill. Waters said her bill would ensure that FHA servicers help families experiencing financial hardships avoid foreclosure so that they can ...


April 20, 2018 - Inside FHA/VA Lending

FHA Accounted for a Good Share of Mortgage Complaints in 2017

FHA-insured loans accounted for a modest chunk of mortgage-related consumer complaints submitted to the Consumer Financial Protection Bureau last year. According to the CFPB’s annual report on consumer disputes, the bureau received approximately 37,300 mortgage complaints in 2017, 13 percent of which were related to FHA mortgages. Loans with a VA guaranty and FHA-insured reverse mortgages accounted for 4 percent and 2 percent of the complaints, respectively. Conventional home mortgages had the biggest share of mortgage complaints – 48 percent – followed by “other type of mortgage” at 28 percent. Six percent of mortgage complaints were about home-equity loans or home-equity lines of credit. For mortgage complaints, 41 percent involved making payments (such as those involving servicing, escrow accounts and posting of payments), while 37 percent were related to borrowers’ ....


April 20, 2018 - Inside FHA/VA Lending

VA Pulls Disclosure Requirement From Earlier IRRRL Guidance

The Department of Veterans Affairs recently withdrew a directive that was part of an early disclosure requirement for Interest Rate Reduction Refinance Loans just days after the measure took effect. Although the early disclosure measure became effective for IRRRLs closed on or after April 1, 2018, VA’ “Frequently Asked Questions” guidance issued on April 5 clarified some of the earlier provisions and removed a new disclosure to address lender concerns. The current VA Lenders Handbook requires a veteran to sign a statement showing he or she understands the effects of the IRRRL and how long it would take to recoup all closing costs. If the veteran’s monthly payment increases by 20 percent or more, the lender must certify that the borrower qualifies for the new monthly payment. The handbook, however, is unclear as to when the statement and lender certification must be delivered. Consequently, some ...


April 20, 2018 - Inside FHA/VA Lending

Ginnie Mae Mulls ‘A-Tier’ Issuer Rating to Raise Nonbank Liquidity

Ginnie Mae is considering a tiered rating system to ensure that all participants in its mortgage securities program have sufficient liquidity and capital to meet their counterparty obligations. The agency is still fleshing out the idea of an “A-tier” issuer, which would likely develop into a policy in the near future, said Michael Bright, executive vice president and chief operating officer, during a recent interview with Inside FHA/VA Lending. “An A-tier issuer would be [a company that] has gone above and beyond in helping put together for us a risk management and liquidity plan that does not rely on liquidity providers, and whose defect and cure rates are low,” he explained. Such issuer/servicers also would be well capitalized. Ginnie is developing the metrics for such a system, as well as incentives for the A-tier issuers, Bright said He added that top-rated firms would be eligible for “concierge services” from the ...


April 20, 2018 - Inside FHA/VA Lending

VA Announces Effort to Convert VALERI to Fully Operational AUS

A general overhaul of the Department of Veterans Affairs’ Loan Electronic Reporting Interface is underway to convert it into a full service, end-to-end system capable of handling every phase of the loan process. Work on VALERI began in 2017, with the aim of integrating all business lines – loan origination, property valuations, and mortgage servicing – into what VA officials view as an automated underwriting system. “We are potentially looking at the redesigned VALERI as an automated underwriting system, an end-to-end system designed to better serve veterans and their families, lenders, servicers and appraisers,” said Jeff London, director of the VA Loan Guaranty Service (LGS), during an interview at the recent VA lender conference in Miami. The VALERI application has been used solely for servicing for the last 10 years. Since 2008, on a monthly basis, servicers have been uploading electronic data ...


April 20, 2018 - Inside FHA/VA Lending

VA’s Loan Guaranty Chief Says Anti-Churning Rule Under Review

The Department of Veterans Affairs has drafted a proposed rule to curb predatory loan churning. The draft rule is “well on its way through concurrence with VA and the Office of Management and Budget,” said Jeff London, director of the VA Loan Guaranty Service, during an interview at the agency’s 19t Annual Lender Conference in Miami recently. He did not specify a publication date but said the proposed rule will be published “fairly soon.” Churning, or serial refinancing, involves multiple refinances of the same loan within short periods with no clear benefit to the borrower. In addition, churning triggers rapid prepayments in Ginnie Mae mortgage-backed securities to the detriment of investors and makes it difficult to price MBS appropriately. London declined to provide details about the rule’s content but said veterans and taxpayers would be protected. VA looked at a range of things that were common in the ...


April 20, 2018 - Inside FHA/VA Lending

VA Share in Gov’t-Backed Servicing Continued to Grow in Early 2018

The Department of Veterans Affairs home-loan guaranty program continued to account for most of the growth in the Ginnie Mae servicing business during the first quarter of 2018, a new Inside FHA/VA Lending analysis reveals. Total Ginnie mortgage-backed securities outstanding rose to $1.940 trillion as of the end of March, including multifamily MBS and securities backed by FHA reverse mortgages. Some $1.795 trillion of that amount was traditional single-family mortgages, a 1.1 percent increase from the end of last year. The forward-mortgage Ginnie market grew by 7.3 percent over the past 12 months. The amount of VA loans in Ginnie pools was up 13.1 percent from March 2017, nearing the $600.0 billion mark. By comparison, the FHA segment of the Ginnie market was up 4.7 percent from a year ago, hitting $1.085 trillion. Loan performance generally improved in both the ... [Charts]


April 20, 2018 - IMFnews

What We’re Hearing: A Kinder, Gentler (and Smarter) Nonprime Industry? / Varde Raises $750 Million / Don’t Layer That Risk / When the Worm Turns… / At Ocwen, Former Government Officials Bring Home the Bacon / NSM Gets a New COO

The highest paid Ocwen director last year was Phyllis Caldwell, who took home $372,649. Caldwell is a former Treasury Department official.


April 20, 2018 - IMFnews

A Lesson Learned from MB Financial: Go Big or Go Home?

Tim Anderson of DocMagic: “You either get bigger or head for the exits.”


April 19, 2018 - IMFnews

Short Takes: Tom Marano, Ditech’s $5 Million Man? / Ripe for a Major Disruption: The Subservicing Market? / Good News: Applications Rise / Rep. Waters Introduces FHA Bill / Ditech Gets a New COO

There are some in the industry who believe the entire subservicing sector is far behind in technology and customer service – and is ripe for a technology disruption of a major kind.


April 19, 2018 - Inside Mortgage Finance

M&A Market for Mortgage Service Providers Begins Heating Up – With No End in Sight

Not only are several mortgage banking firms exploring sale opportunities these days, but dozens of vendors that serve the industry either have changed hands or are up for grabs as well – with more deals expected in the months ahead.


April 19, 2018 - Inside Mortgage Finance

Nonbanks Gobble Up More of the Agency Servicing Market in Early 2018; Growth Spurts at Ginnie Mae

The steamship that is the nonbank share of the mortgage servicing market showed no signs of changing course in the early months of 2018, a new Inside Mortgage Finance analysis reveals. [Includes two charts.]


April 19, 2018 - IMFnews

Phoenix Selling a Large Bulk MSR Portfolio. Bid Deadline: May 1

All of the receivables were originated through the retail channel…


April 19, 2018 - IMFnews

Ditech Taps Bear Stearns/GMAC Veteran Thomas Marano as New CEO

Marano is no stranger to troubled financial service companies. Until 2008, he was a top executive at Bear Stearns...


April 19, 2018 - IMFnews

Nonbanks Continue to Gobble Up More of the Agency Servicing Market

Nonbank servicing of agency MBS has nearly doubled since March 2014…


April 19, 2018 - IMFnews

Surprise: Ron Faris to Retire from Ocwen; Former PHH CEO Messina Named His Successor

Faris is a 27-year veteran of Ocwen, a publicly traded nonbank launched several decades ago by former GE Capital executive Bill Erbey.


April 18, 2018 - IMFnews

Short Takes: FHFA IG Issues Heavily Redacted Report on GSE Cybersecurity / Ditech Worries about Cybersecurity / IBM Says Nothing About Seterus (Again) / What’s in a Title? Off with Their Heads!

As a practice, IBM rarely says a word about Seterus...


April 18, 2018 - IMFnews

MBA: Lower Lending Profits, and Fewer Firms Making Money

An ominous sign: 80 percent of mortgage companies surveyed earned a pre-tax financial profit for the year, compared to 94 percent tin 2016.


April 18, 2018 - IMFnews

Mortgage Industry Sees Promise in Blockchain Technology. Ranieri Enters the Space…

MISMO noted that blockchain is based on digitized, distributed ledgers…


April 18, 2018 - IMFnews

MBA Casts the Net Far and Wide for New Chief. Jeb Hensarling?

The way things stand today, those finalists include at least two industry veterans…


April 17, 2018 - IMFnews

Short Takes: Bank of America Kisses Mortgage Banking (Reporting) Goodbye / When MSR Cash Flow Becomes ‘Immaterial’ / The Eye of the Beholder / Tossing Mortgage Stuff Overboard / Redwood on an MBS Hot Streak / Leaving loanDepot for Impac

Is Bank of America doing a slow fade on mortgages?


April 17, 2018 - IMFnews

Nationstar CEO Jay Bray Cleared for a $4.25 Million Bonus

CEO Jay Bray was eligible for a maximum bonus of $6.90 million…


April 17, 2018 - IMFnews

Now in the Works: A ‘State Level’ CFPB (Thanks to Mulvaney?)

The Garden State is following in the footsteps of Pennsylvania, which created a Consumer Financial Protection Unit last July and hired a former CFPB attorney to lead the initiative.


April 17, 2018 - IMFnews

Ditech Finally Releases 4Q17 Results – A Loss and a Warning About 2018

Ditech added that under new leadership, the lender/servicer “continues to develop and execute various strategies to improve” its performance.


April 16, 2018 - IMFnews

Stearns Holdings Wants to Retire $80 Million Worth of High-Yielding Paper

Finance of America’s new president is industry veteran Bill Dallas.


April 16, 2018 - IMFnews

Early 2018 Brings More Volatility to GSE Single-Family Rivalry

In early 2018 both GSEs were under orders from the Federal Housing Finance Agency to set g-fees that meet a “minimum return on equity…”


April 16, 2018 - IMFnews

Pershing Square Doubles Down on its GSE Bets

In the 2017 annual report, Pershing Square lists Fannie and Freddie common among its “losers…”


April 16, 2018 - IMFnews

A Steep 1Q18 Decline in Residential Production for BofA

BofA also produced $3.75 billion of home equity loans in the first quarter...


April 13, 2018 - IMFnews

What We’re Hearing: OMB Reviewing VA Anti-Churning Rule / MB Financial Shutters Mortgage Division: A Canary in a Coal Mine? / Put Your Seatbelt On / No Complaints From the Nonprime Sector / The Search for Dave Stevens Successor at MBA Narrows

Now comes the big question: How many more MB Financials are out there?


April 13, 2018 - IMFnews

A 19 Percent Drop in Residential Lending at Wells Fargo; Megabank Says Regulators Want $1B to Settle Auto and Mortgage RLC Charges

Wells said the CFPB and OCC have asked the megabank for a $1 billion settlement in the matter.


April 13, 2018 - IMFnews

JPM’s Origination Machine Tanked in 1Q18

Despite the drop, JPM marked up the asset value of its mortgage servicing portfolio...


April 13, 2018 - IMFnews

Chicago Bank Pulls the Plug on National Residential Lending, Will Take a $37 Million Hit (At Least)

MB Financial plans to keep originating home loans in the greater Chicago area and will keep its mortgage servicing platform intact.


April 12, 2018 - IMFnews

Short Takes: A 10 Percent Cut in GSE Loan Limits? (Just a Thought) / Mulvaney Has Saved the CFPB $16 Million / New Rez Buys RPL Pool from Fannie / Directors for New Rez Earn How Much? / NYS Fines Nationstar (aka Mr. Cooper)

With GSE reform all but dead, rumors about possible administrative changes abound...


April 12, 2018 - IMFnews

A Defiant Mick Mulvaney Tells Democrats: ‘I Haven’t Burnt the Place Down’

Rep. Maxine Waters, D-CA, the ranking member of the panel, would not acknowledge that Mulvaney is the head of the agency but asked him questions anyway.


April 12, 2018 - IMFnews

Wedbush Takes an Ugly View on Mortgages, Says Direct Lenders will be the Biggest Losers This Year

On the plus side, Wedbush sees mortgage servicers and home builders benefitting…


April 11, 2018 - IMFnews

Short Takes: Rep. Waters Doesn’t Hold Back on Criticism of Mulvaney / Next Up: Sen. Warren (CFPB Founder) / When Bank LOs Make More than Their CEOs / G-Rate Steps Up LO Recruitment / Worrying About GSE Servicing Comp (Still)

According to the consulting firm of Garrett, McAuley & Co., some mortgage loan officers at depositories earn at least four-times what their CEOs make...


April 11, 2018 - IMFnews

Thanks to Rising Rates, Servicing Values Jump

Mark Garland, president of MountainView Servicing Group, Denver, reported that SRP prices are indeed strong these days. “Absolutely, it’s the best it’s been in years,” he said.


April 11, 2018 - IMFnews

The CFPB’s Latest RFI: How We Doing in the Complaint Department? Meanwhile Mulvaney Testifies…

Mulvaney – a former GOP Congressman from South Carolina and a Tea Party acolyte – declared: “The Bureau’s new strategic priorities are to recognize free markets and consumer choice and to take a prudent, consistent, and humble approach to enforcing the law.”


April 11, 2018 - IMFnews

The Final Nail in the GSE Reform Coffin: Creation of the $3B Capital Buffer?

Fitch said the $3 billion reserve should be sufficient to cover income volatility during “the normal course of business, as seen when interest-rate volatility results in valuation adjustments within the GSEs’ derivative portfolios.”


April 10, 2018 - IMFnews

MountainView Selling $6B-Plus of Bulk Servicing Rights

The bulk portfolio has ultra-low delinquencies…


April 10, 2018 - IMFnews

Bill Dallas Named President of Finance of America?

So far, Bill Dallas has shunned all media requests for comment.


April 9, 2018 - IMFnews

Short Takes: A Million Complaints, Already? / About the CFPB’s Workforce / Good News for Fannie and Freddie / Former Capital One Exec Launches Mortgage-Oriented Fintech Lender / A Surge in Non-Agency MBS Deals this Week

The lender has backing from Bessemer Venture Partners, Two Sigma Ventures and unidentified banks…


April 9, 2018 - IMFnews

Phoenix Capital Selling Fannie/Freddie/Ginnie Bulk MSRs

The conventional portion is top heavy with New York loans…


April 9, 2018 - IMFnews

As Chatter About LO ‘Signing Bonuses’ Increases, Mortgage Employment Rises

Consultant Rick Roque: “There are many ways to structure a ‘transition’ bonus, and most bonuses are only partially paid up front with the rest based on closings over a period of time.”


April 9, 2018 - IMFnews

A New Non-Agency MBS from Flagstar – but with a Low Sampling Ratio

Fitch said it was able to gain comfort with less than a 100 percent sample size due to its on-site operational assessment of Flagstar’s procedures and controls…


April 6, 2018 - Inside FHA/VA Lending

HUD’s Pre-Foreclosure Rule Could Create Challenges for Servicers

A Department of Housing and Urban Development requirement for a face-to-face meeting has become quite a compliance challenge for lenders seeking mortgage foreclosure, according to legal experts. In Dan-Harry v. PNC Bank, a federal court in Rhode Island concluded that a borrower may bring a claim for damages and other remedies against a lender for failure to conduct a pre-foreclosure face-to-face meeting with the borrower – a requirement for breach of an FHA-insured mortgage. In an analysis of the court’s ruling, attorneys at the Chicago law firm Hinshaw & Culbertson said the decision is significant because the HUD regulation provides no private right of action. In addition, Rhode Island law does not recognize a cause of action for breach of good faith and reasonable diligence in foreclosure, they noted. Nevertheless, the legal experts pointed out that Rhode Island federal courts effectively ...


Poll

What’s your opinion on how Mick Mulvaney has managed the CFPB since he took over three months ago?

He’s done a good job of paring back the agency’s excesses and we’d like to see more.

35%

I hope he totally dismantles the agency and sends those functions back to the agencies hence they came.

14%

Not bad, but he needs to take his time making additional changes.

12%

We’re totally aghast. He’s gone way too far in protecting the rights of companies not consumers!

39%