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Volume 8 | Issue 7 | Tuesday, February 13, 2018

The Lede

 

Motley: Servicers Seek Clarity from Washington

DALLAS--Mortgage Bankers Association Chairman Dave Motley, CMB, said legislators and federal regulators need to provide the mortgage servicing industry with greater clarity in which to operate, and to aid consumers.

 

News & Trends

 
MBA: Hurricanes Drive Up 60-Day and 90-Day Delinquencies in 4Q

The delinquency rate for mortgage loans on one-to-four-unit residential properties increased to a seasonally adjusted rate of 5.17 percent of all loans outstanding at the end of the fourth quarter, the Mortgage Bankers Association reported yesterday.

Wells Fargo Leads MBA 2017 Year-End Commercial/Multifamily Servicer Rankings

SAN DIEGO--The Mortgage Bankers Association released its year-end ranking of commercial and multifamily mortgage servicers' volumes as of December 31.

MBA Projects 2018 Maturing Commercial/Multifamily Mortgage Volume to Drop 42%

SAN DIEGO--The Mortgage Bankers Association said 6 percent, or $102.2 billion, of the $1.8 trillion outstanding commercial and multifamily mortgages held by non-bank lenders and investors will mature in 2018, a 42 percent decrease from $175.9 billion in 2017.

Improving Borrower Experience for Better Outcomes

DALLAS--Your borrowers are watching, says Joseph Dombrowski, Director of Product Management & Chief Mortgage Strategist with Fiserv, Brookfield, Wis.

FHFA Finalizes 2018-2020 Housing Goals For Fannie Mae, Freddie Mac

The Federal Housing Finance Agency yesterday published a final rule that establishes new housing goals for Fannie Mae and Freddie Mac for 2018 through 2020.

Seriously Underwater Mortgages Drop in 4th Quarter

Ahead of the Mortgage Bankers Association' National Delinquency Survey release, ATTOM Data Solutions, Irvine, Calif., said 9.3 percent of all U.S. properties with a mortgage were seriously underwater (LTV of 125+) at the end of the fourth quarter, down from 9.6 percent a year ago.

Rate Defects Up from Year Ago; Rising Rates Could Spell Further Increase

Loan application defects, fraud and misrepresentation increased by more than 20 percent in 2017, and that figure could rise in 2018 as mortgage interest rates rise, said First American Financial Corp., Santa Ana, Calif.

MBA News

 
MBA National Secondary Market Conference & Expo May 20-23

The Mortgage Bankers Association' National Secondary Market Conference & Expo returns to the Marriott Marquis in New York May 20-23.

MBA Legal Issues/Regulatory Compliance Conference in L.A. Apr. 29-May 2

The Mortgage Bankers Association's annual Legal Issues and Regulatory Compliance Conference takes place Apr. 29-May 2 at the J.W. Marriott L.A. Live in Los Angeles.

MBA Education School of Mortgage Servicing Feb. 26-Mar.8

MBA Education offers its popular School of Mortgage Servicing instructor-guided online course from Feb. 26-Mar. 8.

MBA Education Advanced Servicing Workshop in Phoenix Apr. 4-5

MBA Education presents its Advance Servicing Workshop in Phoenix Apr. 4-5.

MBA Education Tax Reform: Important Considerations for Mortgage Companies Webinar Feb. 20

MBA Education presents a webinar, Tax Reform: Important Considerations for Mortgage Companies, on Tuesday, Feb. 20 from 2:00-3:30 p.m. ET.

Top National News

 
MBA Chair Motley Urges 'Caution' on Overhauling Servicer Compensation

National Mortgage News, Feb. 7 2018--Austin Kilgore (free story)
Mortgage servicers should approach efforts to overhaul their compensated structure with caution, as changes to the status quo "could have ripple effects across the entire real estate finance industry," warned Mortgage Bankers Association Chairman David Motley, CMB.

Early-Stage Mortgage Delinquencies Dropped in Q4 2017

DS News, Feb. 12, 2018--David Wharton
According to the MBA Fourth Quarter 2017 National Delinquency Survey, general downward trends for mortgage delinquencies continued as 2017 wrapped up, even after the impact of a historically damaging hurricane season.

Easing Mortgage Standards Are Resulting in More Late Payments

Bloomberg, Feb. 8, 2018--Prashant Gopal
The share of borrowers who are late on their Federal Housing Administration loans, which primarily go to first-time homebuyers, rose to 10.4 percent in the fourth quarter from 9 percent a year earlier, according to data from the Mortgage Bankers Association.

How Trump's Budget Affects CFPB, GSE Fees, Other Bank Priorities

National Mortgage News, Feb. 12, 2018--John Heltman, Ian McKendry (subscription)
The Trump administration's 2019 budget highlights the administration's goal of reining in the post-crisis regulatory apparatus, with proposed cuts for several agencies including the Consumer Financial Protection Bureau.

Mulvaney Unveils Sweeping Plan to Dramatically Alter CFPB

HousingWire, Feb. 12, 2018--Ben Lane
"If there is one way to summarize the strategic changes occurring at the bureau, it is this: we have committed to fulfill the bureau's statutory responsibilities, but go no further," Mulvaney said in a statement.

Regulation Reduction Continues at CFPB

Mortgage Daily, Feb. 12, 2018
The latest request for information from the Consumer Financial Protection Bureau marks the third in the past month as the Trump administration continues to reduce regulation on financial services providers.

Fannie and Freddie Mortgages Face Higher Fees Under Trump Budget

Bloomberg, Feb. 12, 2018--Joe Light
In its 2019 spending plan released Monday, the administration asked Congress to raise the fees Fannie and Freddie charge to back payments on mortgage-backed securities by 0.1 percentage point, a move it said would reduce the federal budget deficit by $25.7 billion over the next decade.

The Key To Preventing Foreclosure After a Natural Disaster

National Mortgage News, Feb. 8, 2018--Brad Finkelstein (free story)
To put it mildly, 2017 - with three major hurricanes, wildfires and other extraordinary events - was a living stress test of servicers' and government agencies' preparedness plans for helping borrowers in damage zones. Their coordinated responses appear to have improved from past natural disasters, industry and government representatives said Wednesday during panel discussions at the Mortgage Bankers Association Servicing Conference in Dallas.

Ten Years After the Crisis, Banks Win Big in Trump's Washington

Bloomberg, Feb. 9, 2018--Robert Schmidt, Jesse Hamilton
As the 10th anniversary of the financial crisis approaches, many of the restrictions put in place to rein in Wall Street risk-taking are quietly being unwound.

House Clears Bill to Ease Limits on QM Points and Fees

National Mortgage News, Feb. 8, 2018--Brian Collins (subscription)
The House passed a bill Thursday that would loosen regulatory restrictions on the mortgage points and fees charged by lender-affiliated title insurers and other companies.

U.S. Threatens to Dump Lenders From Veterans Loan Program

Bloomberg, Feb. 8, 2018--Joe Light
Nine lenders have been warned by Ginnie Mae that they will be kicked out of a top mortgage program within months unless they find ways to stop costly rapid refinances of veterans' loans.

It's Time to Redefine Service in the Mortgage Servicing Industry

HousingWire, Feb. 9, 2018--Joseph DeStasio
The author, who spoke at the recent MBA National Servicing Conference, says it's time we change the conversation and recognize that people matter. Talented, happy team members create happy customers. And, when this focus is partnered with the right technology, the industry will finally be able to see some real change.

Opening Up Big Servicing to Small Players

National Mortgage News, Feb. 6, 2018--Bonnie Sinnock (subscription)
The largest lenders and servicers have long dominated the mortgage industry, but it's gradually becoming easier for small and midsize companies to do business with Fannie Mae and Freddie Mac.

Treasury Secretary Mnuchin Wants Answers on Equifax Investigation

HousingWire, Feb. 6, 2018--Caroline Basile
U.S. Treasury Secretary Steven Mnuchin told members of the House Financial Services Committee on Tuesday he is interested in how the Consumer Financial Protection Bureau and its acting director, Mick Mulvaney, is handling the investigation into the data breach at credit agency Equifax.

How FHFA Could Reform Housing Finance if Congress Doesn't

National Mortgage News, Feb. 7, 2018--Ian McKendry (subscription)
If Congress can't get a housing finance reform bill passed by the midterm elections, the Trump administration and Federal Housing Finance Agency may chart a future for Fannie Mae and Freddie Mac without lawmakers' input.

Biggest Reverse Mortgage Lender Opens Forward Biz

Mortgage Daily, Feb. 7, 2018
American Advisors Group, the country's largest originator of federally insured reverse mortgages has begun offering traditional mortgages for its mostly older customers.

New Business, Delinquency Worse at Genworth M.I.

Mortgage Daily, Feb. 7, 2018
Genworth Financial Inc.'s mortgage insurance unit saw increased income despite higher delinquency and losses at its parent. New business fell, but the book of business expanded.

Originations Fall, Servicing Grows at PennyMac

Mortgage Daily, Feb. 8, 2017
Home-lending activity slowed at PennyMac Financial Services Inc. But the company reported growth in both its servicing and staffing.

Equifax Hack Might Be Worse Than You Think

Wall Street Journal, Feb. 9, 2018--AnnaMaria Andriotis (subscription)
Equifax said, in a document submitted to the Senate Banking Committee and reviewed by The Wall Street Journal, that cyberthieves accessed records across numerous tables in its systems that included such data as tax identification numbers, email addresses and drivers' license information beyond the license numbers it originally disclosed.

Walter Investment Emerges from Chapter 11, Changes Name to Ditech Holding Corp.

HousingWire, Feb. 9, 2018--Ben Lane
With the bankruptcy now in the rearview mirror, Walter Investment is changing its name to Ditech Holding Corp., adopting the name of its prominent subsidiary Ditech Financial.

Share of Cashout Mortgage Refinances at Record

Mortgage Daily, Feb. 9, 2018
New mortgage activity moved higher this week, and refinances saw the biggest gain. Cashouts accounted for a bigger share of business than during any week on record.

Ocwen Jettisons Executive Vice President of Lending as Business Shift Continues

HousingWire, Feb. 12, 2018--Ben Lane
Otto Kumbar was, until last week, Ocwen's executive vice president of lending, but Ocwen disclosed Monday that Kumbar's position was eliminated "in connection with the company's previously disclosed strategic assessment of its lending business."

Agency MSR Offering Has NY Concentration

Mortgage Daily, Feb. 12, 2018
Mortgage servicing rights are being offered on 4,263 Fannie Mae, Freddie Mac and Ginnie Mae loans with a collective unpaid principal balance of $773 million as of Dec. 29.

About Servicing NewsLink

President and CEO: Robert Broeksmit, CMB

Publisher: Marcia Davies, Chief Operating Officer

Vice President of Public Affairs: John Mechem jmechem@mba.org

Editor: Mike Sorohan 202/557-2855 msorohan@mba.org 

Editorial Director: Michael Tucker 202/557-2851 mtucker@mba.org 

Senior Editorial/Advertising Specialist: Lesley Hall 202/557-2856 lhall@mba.org

Advertising Opportunities: Bill Farmakis 203/834-8832 bill@jlfarmakis.com

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One Voice. One Vision. One Resource. The Mortgage Bankers Association (MBA) is the national association representing the entire real estate finance industry. For more information visit us at mba.org.