Mega mortgage servicer stocks brush off foreclosure scrutiny
Share values rise at JPM, BAC, WFC
The nation’s largest loan servicers and the HW 30 finished the Wednesday trading day higher despite major headwinds from regulators and a new report suggesting ongoing servicing issues at the banks.
The company’s stock remained resilient despite the monitor pointing out at least two areas where JPMorgan is falling short in complying with the national servicing guidelines.
Bank of America’s stock also finished up 0.58%, while Wells Fargo’s edged up 0.05% on the HW 30.
Wells Fargo (WFC) and the parties handling the ResCap bankruptcy passed every servicing test enacted in the most recent probe; however, not every area is tested each time.
Oddly enough, servicer PHH (PHH) saw its stock tumble 0.39% after the servicer resolved a series of servicing issues raised by the New Jersey Attorney General.
PHH agreed to pay out $6.25M to resolve the case. Unlike the mega servicers impacted by the National Monitor, PHH’s stock was not as resilient.
The HW 30, a compilation of key housing and mortgage stocks, rose 0.27% Wednesday, despite overall concerns that banks dealing with servicing issues are still at risk of litigation and strict regulatory oversight.