Walter Investment has bad news, bad news, and good news
October 1, 2014
Walter Investment Management posted a second-quarter net loss of $12.9 million, or $0.34 per diluted share, which includes charges related to goodwill impairment in the reverse mortgage segment and reductions in the fair value of the company’s servicing rights related to changes in valuation inputs.
The road ahead for mortgage servicing must include a new set of transparent business practices
August 15, 2014
Recent events within the servicing industry have challenged common business practice – and that means that everything that has been done in the past now needs to be re-examined, rationalized, and made transparent.
Managing a tough environment is nothing new to Nationstar President and CEO Jay Bray. His portfolio sits around a quarter full with distressed loans. He’s used to complaints, he can handle
them. Bray is easygoing through it all. All things considered, this is Bray’s comfort zone.
Mortgage loan servicing is a great business when nothing changes. If borrowers continue to pay every month as agreed and they remain in the portfolio for many years, a good loan servicing shop will do very well. We haven’t seen those conditions in quite some time.
In 1997, Texas became the last state in the nation to adopt home equity lending with an amendment to the state constitution. In the event borrowers default on the loan, the lien may be foreclosed upon only by court order.
Although the Federal Housing Finance Agency approved a settlement between Fannie Mae and Bank of America by following its settlement review policy and procedures, the policy did not apply to agreements regarding the transfer of mortgage servicing.
The darlings of 2014, the single-family housing investment and rental businesses, didn’t dominate like last year, but they still had a strong showing. After snagging four of the top five spots on the 2014 HW Fast50, two SFRs placed in the top five in 2015 and three made the top 50..
Bank loyalty is not a factor for borrowers in shopping for a mortgage loan. Borrowers tend to select a mortgage originator based on product, price and their expectation for a convenient transaction process. Read More