Mortgage Servicers

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

May 26, 2017 - Inside FHA/VA Lending

HUD Criticized for Failing to Ensure Proper FHA Insurance Terminations

Poor agency oversight of voluntary lender terminations of FHA insurance on single-family home loans has resulted in increased risk for borrowers, premium overpayments and inaccurate records, according to the Department of Housing and Urban Development’s inspector general. The IG gave the department a poor grade for failing to ensure that lenders properly processed voluntary terminations of FHA coverage and disclosed to borrowers the implications of such termination. The audit report blamed HUD’s failure on its inability to detect and deter lender errors while processing voluntary terminations, causing borrowers to lose FHA-insurance protection and overpay FHA premiums. HUD’s records also were skewed because of the oversight, the report noted. IG auditors reviewed a statistical sample of 115 of the 3,690 loans that were terminated voluntarily by lenders during fiscal years 2015 and ...


May 26, 2017 - Inside FHA/VA Lending

VA LPOs School Lenders on Lending To Incapacitated Vet Borrowers

Loan processing for incompetent veterans presents significant challenges to VA lenders, requiring strict compliance with special guidance on top of the basic VA underwriting rules. One challenge is dealing with legal appointees who assist and represent veterans in legal transactions, such as applying for a mortgage loan. There are ways to determine whether a veteran is incompetent, said Mark Jamison, loan production officer (LPO) with the VA Cleveland Regional Center, during the VA Lender Conference in Kansas City, MO, last month. The Department of Veterans Affairs or a probate court can deem a veteran incompetent due to severe injury, medical conditions, mental disorders, and financial instability, he said. A mortgage lender could make a determination of incompetency if the initial purchase contract documents were signed by an attorney-in-fact, the veteran divulged the incompetency, or the ...


May 26, 2017 - Inside FHA/VA Lending

Housing Finance Reform Should Include FHA Lending Reform

The Financial Services Roundtable called for changes to FHA’s legal liability standards to encourage banks to make more FHA loans. Increased risks of False Claims Act enforcement and concerns about multi-million dollar penalties even for the slightest underwriting errors have forced banks to restrict their FHA lending. The top 10 FHA lenders, once dominated by banks, are now nondepository institutions, which accounted for 83 percent of FHA forward originations in the first quarter of 2017. Wells Fargo, once the leader in FHA lending, has dropped to a woeful 20th place in the rankings. “Some federal officials have expressed concern about the capacity of the government to evaluate the qualifications of lenders that are not subject to regulation by federal agencies,” the FSR said. The group also noted the credit overlays many FHA lenders have added to the loans due to ...


May 26, 2017 - IMFnews

What We’re Hearing: Don’t Bet on Court Outcomes / Randy May Want to Wait on the Curtains / No President, No Cry / About that $627 Million… / What About a Partial Capital Cushion for the GSEs? / A Busy Week for Incenter, Phoenix

If Trump is successful, presumably the money would flow through to the bottom line of Fannie and Freddie and counted toward earnings.


May 26, 2017 - Inside Nonconforming Markets

Subprime Servicing and Disclosures Decline

Data regarding subprime mortgages outstanding, delinquencies and loss mitigation activity are getting more difficult to track as the market has essentially been in runoff mode since 2009.Few servicers report on their subprime portfolios, a key delinquency data series was recently discontinued and details on loan modifications are lagging. Some $247.0 billion of subprime mortgages were outstanding as of the end of the first quarter of 2017 ... [Includes one data chart]


May 26, 2017 - Inside Nonconforming Markets

Jumbo Servicing Increases, Delinquencies Down

Large servicers of jumbo mortgages continued to increase their holdings in the first quarter of 2017, according to a new ranking and analysis by Inside Nonconforming Markets. And delinquency performance improved on already low levels. The unpaid principal balance of jumbo mortgages serviced by a group of 30 companies hit $935.70 billion at the end of the first quarter of 2017, up 1.6 percent from the previous quarter and up 8.4 percent ... [Includes one data chart]


May 26, 2017 - IMFnews

In the Mortgage M&A Game, Small and Medium-Sized Shops are Targets

In years past, RPM has been a selective buyer of mostly smaller shops.


May 26, 2017 - Inside MBS & ABS

Latest Deals Show Market Acceptance of Freddie And Fannie Re-performing Loan Programs

Fannie Mae and Freddie Mac both announced new re-performing loan sale transactions this month as the two government-sponsored enterprises look for ways to shed illiquid assets. Fannie began marketing its first re-performing loan sale back in November to help reduce its balance sheet. The program continues to gain more traction with each sale. That first sale totaled $789.2 million in unpaid principal balance. Fannie has since announced...


May 26, 2017 - Inside MBS & ABS

SFIG Aims for Trump Administration Support on Plans To Lessen Regulatory Burdens on MBS and ABS Market

Recent remarks by Craig Phillips, counselor to the secretary of the Treasury Department, suggest that the Trump administration supports proposals to reduce regulatory burdens in the MBS and ABS markets. The agency is in the process of finding regulations that can be “clarified, modified or tailored” to help boost the housing market. “We believe it’s time to assess whether regulatory requirements have unnecessarily tightened the credit box for new originations,” Phillips said at a credit-risk transfer symposium in New York City. “Regulatory requirements have also contributed to increased cost in servicing. Capital and liquidity standards have put private-label securitization at a disadvantage.” The Structured Finance Industry Group noted...


May 25, 2017 - Inside Mortgage Finance

Industry Groups Push for Supreme Court to Take Up Case Involving ‘Super-Priority’ Liens

A split in court rulings in cases involving “super-priority” liens makes the issue ripe for consideration by the Supreme Court of the United States, according to industry trade groups. Last week, the Mortgage Bankers Association, the American Bankers Association and the U.S. Chamber of Commerce submitted a joint amicus brief to the Supreme Court, stressing that super-priority liens “eviscerate” the traditional standing of mortgages. The court case of interest to the trade groups is...


May 25, 2017 - Inside Mortgage Finance

In the Mortgage M&A Game, New Entrants Eye Smaller Shops, RPM Mortgage Nears a Deal

As summer approaches, the mortgage mergers-and-acquisitions market is heating up – with mostly talk. However, soon that chatter may lead to actual deals. According to investment banking sources, at least three mid-sized nonbanks may pull the exit parachute soon, with offering books ready to follow. The identity of the three firms was not provided, but the firms are well known, said one source. Meanwhile, the list of possible buyers hasn’t changed...


May 25, 2017 - IMFnews

Short Takes: Trump Copies Obama’s FHA Tech-Fee Idea / More Wholesale Lenders? / Home Point Deal Progresses / CHLA Presses for FHA Premium Cut / A New Director at Impac Mortgage

When’s the last time a publicly traded mortgage company was sold in a stock transaction?


May 25, 2017 - IMFnews

More MSR Offerings from Incenter

For the week, IMA rolled out $3.87 billion worth of servicing auctions.


May 25, 2017 - IMFnews

Nonprime Lender Citadel Ready to Enter the Small-Balance Commercial Market

Citadel’s small-balance commercial program will include mixed-use retail and other loan types.


May 25, 2017 - IMFnews

The Supreme Court Could be the Final Venue for PHH Corp. v. CFPB

One constitutional issue that garnered some attention: whether a multi-member commission is more legitimate than a single director…


May 24, 2017 - IMFnews

Short Takes: ABA Wants Explicit Guaranty on MBS / Does it Matter? / Trump Wants to Kill USDA Loan Program / Rep. Hensarling an Optimist but… / A Promotion at Arch MI

In the new Trump budget, the White House takes an ax to the USDA’s rural single-family housing direct loan program.


May 24, 2017 - IMFnews

MBA Chief: Don’t Leave Necessary GSE Reforms to the FHFA

MBA's Stevens once again slams those in favor of a GSE “recap and release” plan, saying this group consists “primarily [of] stock speculators who are most concerned about personal profits” rather than the future of the U.S. housing system.”


May 24, 2017 - IMFnews

The MSR Market Firms Up; More Buyers; What Could Go Wrong?

Servicing advisors Steve Harris and Mark Garland view the MSR market as improving…


May 24, 2017 - IMFnews

Trump Aims to ‘Restructure’ the CFPB and Slash Agency Spending by 22.4 Percent

The Trump White House wants to slash the budget of the CFPB, an independent agency it has no control over...


May 23, 2017 - IMFnews

Short Takes: PHH Gets an ‘Outperform’ Rating / Woman Sentenced in Freddie Mac Fraud / A Quart of Milk with that Fannie MBS? / Title Giant Buys Auction Firm / CMC Asks for CFPB Guidance

A new research note from Wedbush Securities calls PHH an “outperform,” but also reduces the target price on the company’s stock...


May 23, 2017 - IMFnews

Appeals Court to Hear Oral Arguments Wednesday in PHH Corp. v. CFPB

Sam Kazman, general counsel for the Competitive Enterprise Institute, says the hearing involves fundamental issues about the basic structure of our government…


May 23, 2017 - IMFnews

Law Professors Slam Hensarling’s CHOICE Act, Defend the CFPB

The law professors believe the CHOICE Act would take the mortgage industry back to the recent past, which was characterized by risky lending and lax regulatory oversight.


May 23, 2017 - IMFnews

Incenter Selling $2.15 Billion of GSE Servicing Rights

California accounts for the largest chunk of receivables at 34.9 percent.


May 23, 2017 - IMFnews

KBW Says Leave the GSE Dividend Alone, Go with More Risk-Sharing Deals

Meanwhile, although GSE risk sharing seems popular in some circles, FHFA itself admitted recently that some of this coverage has come at premium cost to Fannie and Freddie.


May 23, 2017 - IMFnews

Nonbank Mortgage Firms Report Dour 1Q17 Earnings

PHH Mortgage continues to ooze losses as well…


May 22, 2017 - Inside the CFPB

Other News in Brief

Treasury Eyeballing CFPB Rules as Part of Regulatory Relief Review. The Treasury Department is focused on a wide range of regulatory requirements where simple communication and clarification of the regulatory intent is warranted, such as the CFPB’s ability-to-repay rule, the integrated disclosure rule and the Home Mortgage Disclosure Act rule, Craig Phillips, counselor to the Treasury secretary, said during a symposium in New York City last week, according to Inside Mortgage Finance.... Dodd-Frank Changes to be Discussed. House Financial Services Committee Chairman Jeb Hensarling, R-TX, is scheduled to discuss his Dodd-Frank Act alternative, H.R. 10, the Financial CHOICE Act, Tuesday of this week at an event at the American Enterprise Institute....


May 22, 2017 - Inside the CFPB

Other Compliance News: Financial Freedom to Pay $89M to Settle Reverse Mortgage Charges

Financial Freedom, an Austin, TX-based servicer, agreed to an $89 million settlement with the U.S. Department of Justice to settle allegations that it violated the False Claims Act, the Financial Institutions Reform, Recovery, and Enforcement Act, and FHA servicing requirements in connection with its participation in FHA’s Home Equity Conversion Mortgages, or “reverse mortgage,” program. The Justice Department alleged that Financial Freedom sought to obtain insurance payments for interest from FHA “despite failing to properly disclose on the insurance claim forms it filed with the agency that the mortgagee was not eligible for such interest payments because it had failed to meet various deadlines relating to appraisal of the property, submission of claims to the Department of Housing and Urban ...


May 22, 2017 - Inside the CFPB

Other Compliance News: HUD Wants Industry Input on Regulatory Burden

In response to President Trump’s recent executive orders on regulatory reform, the Department of Housing and Urban Development announced it is looking for industry feedback on any of its existing regulations that might be outdated, ineffective or excessively burdensome. As required by Executive Order 13777, “Reducing Regulation and Controlling Regulatory Costs,” HUD said it is in the process of establishing a regulatory task force charged with identifying agency regulations that should be repealed, replaced or modified. As part of that review, the agency is inviting the public to weigh in on the adequacy and relevancy of its current regulatory framework. “HUD’s goal in conducting the review is to make the department’s regulations more effective and less burdensome in achieving HUD’s ...


May 22, 2017 - Inside the CFPB

Servicers Ask for Guidance on Successor-in-Interest Issues

The Consumer Mortgage Coalition and the Mortgage Servicers Working Group asked the CFPB for guidance on how to comply with bankruptcy-related provisions when a confirmed successor-in-interest, who is not legally a borrower, has filed a bankruptcy petition. Under Regulations X and Z, these successors will be considered borrowers. Their inquiry came in response to the bureau’s request for comment on its plan to assess its 2013 mortgage servicing rules. One question the industry representatives had is whether the Fair Debt Collection Practices Act applies to the mortgage servicing rule’s early intervention requirements. They note that Section 1024.39(c) of Reg X provides some exemption from early intervention written notices if any borrower on the loan sends an FDCPA cease-communication notice “with ...


May 22, 2017 - Inside the CFPB

FSR Calls for White House to Change CFPB Structure, Rules

The Financial Services Roundtable advised the Trump administration that the structure of the CFPB needs to be changed, and that the agency should revise a handful of its key mortgage rulemakings, most notably the ability-to-repay/qualified mortgage rule, the Home Mortgage Disclosure Act rule and the Truth in Lending Act/Real Estate Settlement Procedures Act Integrated Disclosure rule, or TRID. The FSR’s call came in a detailed response to President Trump’s Executive Order 13777, “Reducing Regulation and Controlling Regulatory Costs,” issued earlier this year, directing the Treasury Department to conduct an assessment of financial regulations to evaluate how they align with the White House’s core principles of financial regulation. In terms of the bureau itself, the industry organization said the governance structure ...


May 22, 2017 - IMFnews

Chances of a ‘Win’ by GSE Stock Speculators Dimming?

Since Watt’s recent testimony, GSE speculators like Pershing Square and Fairholme have been mostly quiet.


May 22, 2017 - IMFnews

LendingHome Gets Fannie Mae Approvals, Hires Former Nationstar CFO

Since its founding in mid-2014, LendingHome has originated $1 billion in loans.


May 22, 2017 - IMFnews

CFPB Did Not Fully Secure Sensitive Enforcement Data, OIG Finds

The CFPB responded that “none of the identified opportunities for improvement ever resulted in any breach of confidential information outside the bureau.”


May 19, 2017 - Inside Mortgage Trends

MSR Holdings Seen as Helpful for Nonbanks

As interest rates increase, nonbanks’ holdings of mortgage servicing rights will help offset losses tied to lower originations, according to analysts at S&P Global Ratings. “We expect market trends affecting nonbank mortgage companies to change dramatically now that rising interest rates are driving MSR valuations higher,” the rating service said in a recent report. Freddie Mac and the Mortgage Bankers Association separately forecast that the average interest rate ...


May 19, 2017 - Inside Mortgage Trends

Subservicers Require Due Diligence, Monitoring

As lenders increasingly turn to subservicers to handle various functions, up-front due diligence and ongoing monitoring are necessary to help increase originations and maximize return on investment, according to Kurt Blohm, a senior manager at Richey May & Co. Blohm is the leader of the consulting firm’s subservicer oversight review service and he recently authored a white paper on selection and oversight responsibilities for holders of mortgage servicing rights ...


May 19, 2017 - IMFnews

What We’re Hearing: Let the M&A Party Begin? / Stocks Long Overdue for a Sell Off? / Walter's Tony Renzi Earns his Paycheck? / Caliber and Citadel Promote Non-QM Loans / A New Hire for Amherst

But can Walter/Ditech grow its lending business in a highly competitive market?


May 19, 2017 - IMFnews

Letting the GSEs Build a (New) Capital Buffer: The Devil’s in the Details

The only way Fannie and Freddie are going to lose money is if there’s a hedging loss. And even then, it will be a non-cash charge…


May 19, 2017 - IMFnews

CFPB Responds to Rep. Hensarling’s Accusation of Politicization

CFPB Director Richard Cordray would love to sit in on a GOP caucus as well.


May 18, 2017 - Inside Mortgage Finance

Trump Administration Needs to Press For Multiple Reforms to FHA Lending, FSR Suggests

The Financial Services Roundtable recently called for enacting comprehensive housing finance reform, including reform of the FHA’s single-family mortgage insurance program while focusing the agency’s mission on first-time and low- and moderate-income borrowers. The FSR’s call came in a detailed response to President Trump’s executive order earlier this year directing the Treasury Department to conduct an assessment of financial regulations. For starters, the trade group urged...


May 18, 2017 - Inside Mortgage Finance

Benefits and Risks Seen in Shifts of Servicing from Large Firms to Smaller Servicers and Subservicers

Transfers of servicing from large servicers to smaller firms can help improve loss mitigation performance while introducing new risks to the system, according to industry analysts. Smaller servicers tend to be more “nimble” than large servicers and are better suited to handle distressed mortgages, according to analysts at Moody’s Investors Service. The rating service published a report recently highlighting changes in the servicing industry. Many large servicers, predominantly banks, have reduced...


May 18, 2017 - Inside Mortgage Finance

Delinquencies Resume Downward Trend in 1Q17, Slight Uptick in Foreclosure Starts

Mortgage performance improved in the first quarter of 2017, recovering from a somewhat unexpected increase in delinquencies at the end of 2016. The total delinquency rate in the Inside Mortgage Finance Large Servicer Delinquency Index was 4.28 percent as of the end of March, down from 5.05 percent at the end of the previous quarter and improving on the 4.95 percent delinquency rate recorded in March 2016. Among the 32 servicers in the large delinquency index, only two reported...[Includes one data table]


May 18, 2017 - Inside Mortgage Finance

The MSR Sales Market Heats Up: More Buyers And Prices Firm Up. What Could Go Wrong?

Although bulk transfers of mortgage-servicing rights were down somewhat in the first quarter, sales advisors are reporting strong activity for the period including more buyer interest and a firming up of prices, even on Ginnie Mae product. According to affiliated newsletter Inside Mortgage Trends, bulk agency MSR transfers that closed in the first quarter were down 35.9 percent from the fourth to $77.3 billion. The biggest downturn was in Fannie Mae product, due to a temporary freeze on bulk transfers as servicers adjusted to new investor reporting requirements. Freddie Mac transfers were actually up from the fourth quarter. More banks and consortiums are extending...


May 18, 2017 - IMFnews

Short Takes: About Those GSE Dividend Payments… / Maybe Half a Payment? An IOU? / Money Owed is Money Owed / Mnuchin Targets Second-Half for GSE Reform / New Penn Names New COO

What if the FHFA cuts the payments and hands Treasury an IOU? The possibilities are endless...


May 18, 2017 - IMFnews

Delinquencies Resume Downward Trend in 1Q17, Slight Uptick in Foreclosure Starts

Among the 32 servicers in Inside Mortgage Finance’s large delinquency index, only two reported an increase in total late payments…


May 18, 2017 - IMFnews

FHFA Chief Declares G-Fees ‘Appropriately’ Priced; On CRTs, He Admits to Premium Pricing

Watt noted the CRT coverage has come at a financial cost – and that Fannie and Freddie have been paying a premium.


May 18, 2017 - IMFnews

Rep. Hensarling Slams CFPB Director Cordray for Attending Democratic Caucus

House Financial Services Committee chairman Jeb Hensarling believes it’s a done deal that Cordray will run for office in Ohio…


May 17, 2017 - IMFnews

Short Takes: Refis Hit a Low Not Seen Since 2008 / Let’s Compare Conservatorships / HUD Chief Agrees with NAR on Condos / Dead Reverse Lender Settles / A New Branch for Castle & Cooke

This fall will mark – unless there’s divine intervention or a Kumbaya moment in Washington – the ninth anniversary of the federal takeover of Fannie and Freddie.


May 17, 2017 - IMFnews

Going, Going and Soon to be Gone: ‘Distressed’ Housing Units?

Deutsche noted that after years of a steady broad-based housing market recovery “investors are now facing severe shortages in distressed housing pipelines.”


May 17, 2017 - IMFnews

PHH, Ocwen and Walter All Have the Same Plan: Sell MSR and Continue as the Subservicer

All three hope to raise cash by selling MSR assets, eliminate the need to hold large sums for servicing advances and – importantly – buy some time.


May 17, 2017 - IMFnews

HUD Wants Your Input on Regulatory Burden

Specifically, HUD wants to know if there are any regulations that should be repealed, replaced or modified.


Poll

Should any GSE reform bill from Congress be based on the concept of preserving Fannie Mae and Mac and their existing operations?

Yes.
No.
GSE reform won’t happen in my life time.

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