Mortgage Servicers

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

October 19, 2017 - Inside Mortgage Finance

Most Servicing Amendments Kick in This Week, Even More Complexity Expected When States Act

Most of the final amendments the Consumer Financial Protection Bureau made to its mortgage servicing rules kicked in late this week, and the biggest challenge firms will have to contend with is the increased complexity. In an interview this week with Inside Mortgage Finance, Nanci Weissgold, a partner with the Alston & Bird law firm in Washington, DC, highlighted which provisions took effect this week and those coming on line next spring, and what they mean for ...


October 19, 2017 - Inside Mortgage Finance

Agency Servicing Continued Growing in 3Q17, But Top Banks Still Pulling Back

The universe of servicing single-family home loans for Fannie Mae, Freddie Mac and Ginnie Mae continued to expand in the third quarter, but a handful of large banks wanted little to do with it. The three agencies had a combined $6.378 trillion of single-family mortgage-backed securities outstanding at the end of September, up 1.9 percent from the midway point in the year, according to a new Inside Mortgage Finance analysis of agency MBS disclosures. All three ... [Includes two data charts]


October 19, 2017 - IMFnews

Short Takes: Princeton Mortgage Enters Wholesale Arena / Ocwen Settles with Lone Star State / Stipulations Regarding REALServicing / The Original Trademark / Angel Oak Hires Fund Manager

Ocwen settled with Texas regulators as well...


October 19, 2017 - IMFnews

Agency Servicing Continued to Grow in 3Q17, Megabanks Show Little Interest

The four megabanks reduced their agency mortgage servicing rights by $59.6 billion during the third quarter…


October 18, 2017 - IMFnews

Short Takes: The Little Guy Gets a G-Fee Break / A Coming Spike in G-Fees? / More Financial Maneuvers by Radian / A Hot Streak for Non-Agency Prime MBS / A Stock Market Crash Warning from Treasury Secretary Mnuchin

Might this suggest that g-fees charges could spike next year when zero hour comes?


October 18, 2017 - IMFnews

U.S. Bancorp Grows Residential Production by Almost 10 Percent

Compared to the same period a year ago, residential loan production declined by 19.6 percent...


October 18, 2017 - IMFnews

Institutional Investors Reduce Positions in PHH. Meaning?

The disclosures aren’t entirely surprising given that PHH recently wrapped up a generous buyback offer…


October 17, 2017 - IMFnews

Short Takes: More Trouble for SoFi & Fintech? / So, Maybe CFPB’s Cordray Won’t Run / Goldman Agrees to Buy Fix-and-Flip Lender / Housing Assistance Council Hires former HUD, USDA Official to Lead the Organization

With fall-out spreading from the turmoil at Social Finance, investors might be thinking twice about so-called “fintech” firms...


October 17, 2017 - IMFnews

CFPB Eyeballing New Disclosures for Reverse Mortgages?

In recent months, the consumer bureau has expressed concerns about the risks associated with reverse mortgages.


October 17, 2017 - IMFnews

Ocwen Settles With Arkansas, DC, Tennessee; Hatchet Now Buried With 20 Jurisdictions

Investors are still waiting for Ocwen’s biggest outstanding dispute – the one with the CFPB – to be settled, one way or the other.


October 16, 2017 - IMFnews

Short Takes: Large Nonbank Ready to Enter Second-Lien Market / Mortgage Layoffs in California? / The 30th Anniversary of ‘Black Monday.’ Beware? / UWM Rolls out ‘Client Loyalty’ Tool for Brokers / Annaly CEO will Become Chairman, Eventually

A large nonbank is about to enter the second-lien market...


October 16, 2017 - IMFnews

Citadel Receives Ratings from Morningstar; Look for a Nonprime MBS in January

Morningstar said the company’s underwriting process, quality control and compliance functions were factors in the rankings…


October 16, 2017 - IMFnews

MIAC Sets Auction for Fannie Mae MSR Portfolio

The seller of the MSR package focuses on the California market...


October 16, 2017 - IMFnews

CFPB Enforcement Chief Anthony Alexis to Depart

Before joining the bureau in 2012, Alexis was a complex litigation and white collar partner at the Mayer Brown law firm in Washington, DC…


October 16, 2017 - IMFnews

Stearns Lending Reveals it Has a Mortgage Joint Venture with SoFi

Stearns, however, doesn’t service any mortgages for SoFi…


October 13, 2017 - Inside FHA/VA Lending

IG Finds HUD Ensured Purchaser Compliance, Needs Improvement

The Department of Housing and Urban Development inspector general praised the agency for ensuring purchasers participating in HUD’s single-family note sales program complied with the terms in their purchase agreements. The inspector general noted, however, the need to improve the requirements in the purchase agreements. The IG found those requirements inadequate due to the lack of formal rules for the note sales program. “If a purchaser chose not to comply with its purchase agreement, HUD lacked assurance that the purchaser would offer homeowners foreclosure avoidance, loan-modification options, and other program requirements,” the IG’s audit report stated. Under the agreement, loan buyers must certify their avoidance of final closure for the required period of time, perform loan modification, and submit quarterly reports on their progress, including results of ...


October 13, 2017 - Inside FHA/VA Lending

HUD Dumps Lender Insight for New Loan Review Summary Report

The Department of Housing and Urban Development is discontinuing its quarterly newsletter, Lender Insight, with the implementation of FHA’s Loan Review System. The change is aimed at improving both FHA’s and lenders’ quality-control and risk-management operations. HUD will be publishing a quarterly Loan Review Summary Report to provide a snapshot of the results of FHA’s quality-control review of mortgage originations over the preceding 12 months. According to HUD, the report will include only underwritten loans that were subject to a post-endorsement technical review. It does not include the results of lenders’ self-reports or any other loans that were reviewed as part of a lender examination, the agency said. The report will show the initial rating of all loans, the updated rating six months from the end of the review period, and a final rating. The “final” rating is subject to change as long as ...


October 13, 2017 - Inside FHA/VA Lending

HUD Finds IG’s Recommendations On Water Safety Unwarranted

The Department of Housing and Urban Development has requested its inspector general to reconsider certain recommendations intended to toughen safety standards for drinking water in FHA-insured properties. Other lenders or appraisers could interpret imposing stringent requirements on a few FHA lenders wrongly, which could lead to unnecessary water testing simply to avoid future litigation risk, HUD warned in its response to audit findings. HUD disagreed that administrative action is warranted. “Due to potential unintended consequences, [HUD Single Family] does not believe the imposition of sanctions at this time presents a viable alternative,” the department wrote. While making changes to water-safety standards, HUD said it will train lenders and appraisers to ensure compliance with the revised standards. The IG audit came in the wake of a previous audit, which found that ...


October 13, 2017 - Inside FHA/VA Lending

Ginnie Reveals Nearly 10 Percent Exposure in Disaster Areas

An estimated 9.8 percent of Ginnie Mae’s business may be potentially at risk due to hurricanes Harvey, Irma and Maria, according to data released recently by the agency. The data represent the number of Ginnie loans and their unpaid principal balance amounts in presidentially declared disaster areas in Texas, Florida, Georgia, Puerto Rico and the U.S. Virgin Islands. A total of 1.07 million mortgage loans with an unpaid principal balance of $184.5 billion have been affected. Ginnie Mae’s current mortgage-backed securities portfolio totals $1.9 trillion. The data only refer to the geographic locations of all affected properties underlying loans in Ginnie MBS pools and do not indicate the percentage of those that may have sustained damage during a storm. Hurricane Irma had the highest share of affected loans, 6 percent, while Harvey and Maria accounted for 3 percent and 1 percent, respectively. Irma caused the ...


October 13, 2017 - Inside FHA/VA Lending

Ginnie Mae, VA Announce Joint Task Force to Stop Improper Refis

Ginnie Mae and the VA this week officially announced a joint-agency task force to deal with the loan-churning problem that is triggering faster prepayments in Ginnie mortgage-backed securities pools. Specifically, the task force will scrutinize aggressive and misleading refinancing offers and address loan churning and repeated refinancings. It will also examine critical issues, data and lender behaviors related to refinancing loans, as well as determine the kind of policy and program changes agencies should make to ensure VA refi loans do not pose an undue risk or burden to vets and taxpayers. Both the VA and Ginnie Mae programs work best when market participants use them to provide a benefit to VA borrowers and, ultimately, lower vet’s costs, officials said. The task force has begun examining data and information to ensure refi loans provide net tangible benefits to veteran-borrowers. In addition, the ...


October 13, 2017 - Inside FHA/VA Lending

Carson Open to Excising HECM From Mortgage Insurance Fund

Department of Housing and Urban Development Secretary Ben Carson indicated he is open to the idea of moving the Home Equity Conversion Mortgage program out of the FHA Mutual Mortgage Insurance Fund to stem future losses. Testifying before the House Financial Services Committee this week, Carson said the changes the department has made recently, as well as those currently under consideration, will eliminate most of the program’s problems although residual issues may still linger. Carson acknowledged that the HECM program’s default rate has been a drain on the MMI Fund even though it is much smaller than the FHA’s forward loan portfolio. The recently revised HECM rules issued on Sept. 19 have “stopped the bleeding” in terms of new reverse mortgages, he added. However, separating the HECM portfolio from the FHA insurance fund and making it a stand-alone program is ...


October 13, 2017 - Inside FHA/VA Lending

Ginnie MBS Issuance Rolled To Year’s High Mark in 3Q17

Ginnie Mae issuers rode a wave of purchase-mortgage lending to deliver $120.46 billion of forward mortgages during the third quarter of 2017, the highest three-month volume for the year, according to a new analysis and ranking by Inside FHA/VA Lending. Third-quarter volume was up 9.6 percent from the April-June cycle. The data excluded FHA reverse mortgages and loan amounts are truncated in Ginnie’s mortgage-backed securities disclosures. Without those limitations, total Ginnie MBS issuance rose 9.5 percent to $123.37 billion in the third quarter. Purchase mortgages were the engine behind the growth. Ginnie issuers securitized $85.35 billion of purchase loans in the third quarter, falling just short of the record $85.41 billion set in the third quarter of last year. Although most Ginnie purchase loans (58.7 percent) were FHA loans, the biggest increase was in such loans guaranteed by the ... [Charts]


October 13, 2017 - IMFnews

What We’re Hearing: FHFA Chief Has a ‘Number of Options’ on Zero Capital / Is That a ‘Hard’ Deadline? / Once Tax Reform is Done, Next Up: the GSEs / Can HUD Secretary Carson Get the IG to Back Off on the FCA? / Ocwen Kills Wholesale. Meaning?

Meanwhile, one detail about the capital buffer falling to zero remains unclear: On Jan. 1 will every single penny of the $600 million (at each) be carted away?


October 13, 2017 - IMFnews

HUD Secretary Ben Carson Open to Excising HECMs from the MMIF

Rep. Heck said he will ask the GAO to study and recommend options for improving the reverse-mortgage program, including shifting HECMs out of the MMIF...


October 13, 2017 - IMFnews

A Modest Uptick in Home Lending for Wells Fargo in 3Q17; Meanwhile, a $1 Billion Legal Charge for Mortgage Investigations

Gain-on-sale profits came to 124 basis points, flat from the prior period, and the weakest reading of the past five quarters...


October 13, 2017 - IMFnews

A (Slight) Drop in Originations at BofA for 3Q17

Home equity lending fell even more at BofA: down 12.7 percent from the prior period...


October 12, 2017 - Inside Mortgage Finance

Widespread Defaults Predicted for Vintage HELOCs Didn’t Happen; Performance Helped by Price Gains

Federal regulators and industry analysts raised concerns that defaults would spike once pre-crisis home-equity lines of credit hit their amortization periods. Those fears didn’t come to pass as vintage HELOCs have performed well, thanks to home-price appreciation and low interest rates. Pre-crisis HELOCs typically had interest-only periods for the first 10 years then switch to fully amortizing or required a full payment as part of a balloon feature. According to a 2015 report by the Office of the Currency ...


October 12, 2017 - IMFnews

Short Takes: Residential Production Plunges at Citi / MSR Holdings Down Too / But a Nice Profit for 3Q17 / JPMorgan Readies New Non-Agency MBS / Ocwen Exiting Wholesale Channel / Fannie Announces New NPL Auctions

Citi’s third-party servicing portfolio is down to $49.1 billion from $147.6 billion at Sept. 30, 2016...


October 12, 2017 - IMFnews

KBW: Don’t Expect Much Improvement from Gain-on-Sale

“We estimate that gain-on-sale margins will be roughly flat quarter to quarter,” writes KBW analyst Bose George…


October 12, 2017 - IMFnews

Ocwen Settles Servicing Disputes with Two More States

In all of these agreements, Ocwen neither admitted nor denied liability…


October 12, 2017 - IMFnews

JPM Grows Residential Lending by Almost 13 Percent in 3Q17, Keeps Adding to Whole-Loan Portfolio

Total mortgage banking revenue for the period came in at $1.56 billion compared to $1.43 billion in 2Q17...


October 11, 2017 - IMFnews

The GSEs Should Report Robust Earnings for 3Q17. Here’s Why…

A previously announced legal settlement with Royal Bank of Scotland will soon hit the books...


October 10, 2017 - IMFnews

As the New Quarter Begins, More GSE MSR Deals Hit the Auction Block

The first offering is for $524 million and comes from an independent mortgage banking firm…


October 10, 2017 - IMFnews

Did the Department of Justice Ever Opine in the CFPB Case? Hard to Say…

No one’s talking, and there’s been no indication that the DOJ has even filed a brief in the Ocwen case…


October 9, 2017 - Inside the CFPB

Other News in Brief

Did DoJ Opine on Ocwen v. CFPB? No One’s Talking. Earlier this year, Ocwen Financial asked Judge Kenneth Marra of the U.S. District Court for the Southern District of Florida, West Palm Beach Division, to invite the U.S. attorney general to appear and participate in the company’s challenge to the constitutionality of the CFPB.... Last Call for Public Comments on TRID ‘Black Hole’ Proposal. The industry has until 11:59 p.m. Oct. 10, 2017, to submit comments to the CFPB regarding its proposal to close the “black hole” associated with the bureau’s integrated disclosure rule under the Truth in Lending Act and the Real Estate Settlement Procedures Act....


October 9, 2017 - Inside the CFPB

Ocwen Financial Settles Mortgage-Related Disputes With 15 States

Ocwen Financial, the once high-flying non-bank mortgage servicer, has brought to 15 the number of states it has reached settlements with to resolve allegations its compliance with laws and regulations related to its mortgage servicing and lending activities was deficient. Last week, Ocwen settled with New Mexico, Virginia and West Virginia. Late last month, it entered into agreements with 10 other states: Georgia, Idaho, Illinois, Maine, Michigan, Mississippi, Montana, Rhode Island, South Carolina and Wisconsin. Nevada and Indiana previously either withdrew or allowed their respective cease-and-desist orders to expire. Per the settlements, Ocwen will not acquire any new residential mortgage servicing rights until April 30, 2018. Also, the nonbank will develop a plan of action and milestones regarding its transition ...


October 9, 2017 - Inside the CFPB

Bureau Proposes More Certainty For Providing Periodic Statements

The CFPB issued a proposed rule last week to provide more certainty for mortgage servicers about when to provide periodic statements to consumers in connection with their bankruptcy cases. The consumer bureau said it is proposing amendments to certain mortgage servicing rules issued in 2016 under Regulation Z (which implements the Real Estate Settlement Procedures Act) relating to the timing for servicers to transition to providing modified or unmodified periodic statements and coupon books in connection with a borrower’s bankruptcy case. Among other things, the 2016 mortgage servicing final rule addresses Reg Z’s periodic statement and coupon book requirements when a person is a debtor in bankruptcy. It includes a single-billing-cycle exemption from the requirement to provide a periodic statement ...


October 9, 2017 - Inside the CFPB

CFPB Gives Servicers More Flexibility to Deal With Foreclosure

The CFPB last week issued an interim final rule to give mortgage servicers more flexibility to communicate with homeowners at risk of foreclosure. “Today’s action should make it easier for mortgage borrowers to receive timely information from their mortgage servicers about available options for saving their home, even if they have submitted a request to cease communication,” said CFPB Director Richard Cordray. In 2016, the bureau made changes to its rules to require servicers to send modified early intervention notices to certain borrowers at risk of foreclosure who asked for an end to communication under the Fair Debt Collection Practices Act. Under the FDCPA, borrowers can tell their servicers to stop contacting them, with some limited exceptions. Once such borrowers ...


October 9, 2017 - IMFnews

Short Takes: Treasury Working on GSE Ideas? / Will Trump Get Involved Directly? / Sauri Launches FinKube / Too Much Overhead, Maybe / A New Hire for Endeavor

With Trump being a real estate developer – though that part of his career is on hold right now – it will be interesting to see if he takes a hands-on approach to reforming the GSEs...


October 9, 2017 - IMFnews

Mortgage Brokers Added 1,400 Jobs in August, Lenders Not so Much

Steve Abreu, founder and CEO of Newfi, said the privately held nonbank is taking resumes from wholesale representatives and underwriters.


October 9, 2017 - IMFnews

PHH Private-Label Customer Morgan Stanley Slashes Stake in Nonbank to 0.2 Percent

Back in 2015, the Morgan Stanley PLS contract accounted for roughly 20 percent of PHH’s originations…


October 6, 2017 - IMFnews

What We’re Hearing: A Blowout Quarter for Freddie? / Pulling the Zero Capital Lever in Denver? / Mark Calabria for FHFA Director? / RIP: the Savings and Loan Industry / A New Idea: Crowd Funding to Help Delinquent Borrowers? / A New Hire for BSI

In a new report, Cowen gives the early lead on the FHFA job to Mark Calabria, chief economist to Vice President Mike Pence...


October 6, 2017 - IMFnews

Price of Fannie/Freddie Common Up 35 Percent Since Summer. Credit the RNC?

The RNC document says the GOP “recognizes the sanctity of property rights in America,” which should warm the hearts of GSE common and junior preferred shareholders…


October 5, 2017 - Inside Mortgage Finance

CBO Calculates FHA Subsidy, Risk Based on Fair-Value, Outlines Options for Shrinking Government Exposure

The Congressional Budget Office recently issued a white paper analyzing options to reduce taxpayer exposure to FHA risk while allowing the program to continue providing affordable credit to first-time homebuyers and low-income borrowers. Although FHA continues to write high-quality, newer books of business, the CBO sees more mortgage borrowers with good credit scores, large downpayments or low debt-to-income ratios shifting to the private mortgage market ...


October 5, 2017 - Inside Mortgage Finance

Banks Largely Happy with Banking Regulators’ Plan to Reduce Capital Requirements for MSR

A proposal last week from federal regulators to reduce capital requirements on mortgage servicing rights for all but the largest banks was met with mostly praise from banks. “The proposal to review and refine capital rules for community banks is a step in the right direction that acknowledges what our members already know,” said Rob Nichols, president and CEO of the American Bankers Association. “Some of the current capital requirements are keeping banks from fully serving their ...


October 5, 2017 - Inside Mortgage Finance

Nonbank Participants in the MSR Market Strive for Liquidity, Changes to Fannie’s Acknowledgement Agreement Likely

Nonbanks lack the deposit base banks have to support their investments in mortgage servicing rights, but nonbanks are seeing increased liquidity in terms of MSR financing. The government-sponsored enterprises and Ginnie Mae have also adjusted their acknowledgement agreements to make MSR financers more comfortable in the sector, with further changes likely. “In the nonbank mortgage sector, there is a big need for the financing of the MSR asset,” Vandy Fartaj, chief capital markets ...


October 5, 2017 - IMFnews

More Bulk MSR Packages Hit the Market

Loans from Maryland and Indiana represent a majority of the collateral at 37 percent and 25 percent, respectively…


October 5, 2017 - IMFnews

Ocwen Financial Hires Wall Street Veteran Chris Whalen

Early last year Whalen predicted the nation’s four largest commercial banks might exit the business of residential lending and servicing…


October 5, 2017 - IMFnews

CFPB Gives Servicers More Flexibility in Dealing with Troubled Borrowers

The interim final rule becomes effective on October 19…


October 4, 2017 - IMFnews

Short Takes: FHFA’s Watt Tells Panel He Can Go It Alone / A Deal (Eventually) with Treasury’s Mnuchin? / Sen. Warren to Wells CEO: You Should be Fired / Wells’ Rate-Lock Mess / A New Hire for Silver Hill

A handful of GSE watchers we spoke to believe that in time Watt will work out a compromise with Treasury Secretary Steven Mnuchin on zero capital...


Poll

The year is almost 75% done. How is mortgage origination volume at your shop?

We will fund about the same as we did in 2016.
We will fund more than last year – by a little.
We will fund more than last year – by a lot.
We will fund less than last year – by a little.
We will fund less than last year – by a lot.

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