How far can lenders push the credit box?

How far can lenders push the credit box?

Watt announcement helps, but risk keeps standards tight

Warren calls for GAO investigation of nonbank servicers

Asks GAO to review “unprecedented” growth of nonbank servicers

Freddie Mac CEO: We will help increase mortgage lending

Competition among two is still competition
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Servicing

Barclays joins chorus with Ocwen warning

“Investors should be wary of a worst-case scenario”
Ben Lane
Barclays tells clients that while it may take time to determine the true extent of the practices Lawsky alleges Ocwen took part in, investors in non-agency residential mortgage-backed securitizations “should be more wary of a worst-case scenario,” when it comes to Ocwen.
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$1 billion in MSRs just became available

Loans backed by Fannie Mae and Ginnie Mae
Ben Lane
The portfolio features 97% fixed-rate and 100% first-lien product, a weighted average original FICO score of 716, a weighted average original loan-to-value ratio of 86%, and a weighted average interest rate of 4.53%, MountainView said.
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Warren calls for GAO investigation of nonbank servicers

Asks GAO to review “unprecedented” growth of nonbank servicers
Ben Lane
Senator Elizabeth Warren, along with Congressman Elijah Cummings, sent a letter this week to the U.S. Government Accountability Office, requesting an investigation into the risks posed to consumers by the “unprecedented” growth in nonbank mortgage servicing.
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Ocwen Financial taking a beating in the ratings, on the Street

Ratings downgrades and falling stock follow NYDFS assault
Trey Garrison
Ocwen Financial is enduring a second day that looks like a UFC-level beat down on Wall Street as ratings agencies and investors turn on the firm after the New York Department of Financial Services dealt the nonbank firm yet another blow on Tuesday.
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IMA selling $46.1 million whole loan and REO portfolio

Seller has “very strong financials”
Ben Lane
There are 210 loans total in the portfolio, with an average loan size of $216,367. The loans carry a weighted average seasoning of 75.2 months and a weighted average interest rate of 3.89%.
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NTC study alleges up to 490,000 homeowners face inaccurate servicing records

Faulty data can be passed from servicer to servicer
Trey Garrison
National Title Clearing found that out of 2,285,665 servicing database records that were verified against the collateral file, 24,490 loans (1.07%) had significant discrepancies.
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American Housing Survey finds 1 in 3 homes is a rental

Majority of Americans get along with their next-door neighbors
Trey Garrison
One in every three single-family homes is a rental, lots are shrinking, and one in 10 homes has had a mice or cockroach problem. Homes have fewer physical problems than two years ago. Welcome to American housing.
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Executive Conversation: Peak Corporate Network specializes in servicing

Eli Tene and Gil Priel on understanding the needs of investors
Sarah Wheeler

Over 35 years’ experience in the industry and having survived three very strong cycles has taught us with each cycle how to mitigate the risk that comes with those changes.


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The shocking truths for homeowners struggling against foreclosure

Law firm: Wells Fargo case study allegedly reveals what they are up against
Trey Garrison
Several big banks have negotiated large settlements with the Department of Justice for their role in the housing bubble and subsequent economic collapse, but struggling homeowners shouldn't hold their breath waiting for relief.
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Looming layoffs at Bank of America signal shift in mortgage servicing

Impact already being felt throughout industry
Ben Lane
The impact of Bank of America's $16.65 billion settlement is beginning to be seen in the mortgage industry. The settlement will affect more than just the bank, the aggrieved homeowners and the government. It isn’t just the big banks that feel the pain of these settlements. It affects everyone.
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