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 CFPB left the grace period open-ended and most in the industry interpreted that to mean that it will last throughout the rest of 2015, at least. Unfortunately, as welcome as that grace period is, TRID remains a costly and complicated fix that has enormous implications for the whole industry..
“Bad letters damage the brand,” Katherine Porter says. “There’s a contagion effect of this. I think bad letters are unjust. They disproportionately harm the borrowers we need to help the most.” Read More
The answer may be found somewhere between commandeering the entire process and “throwing it over the fence.” For lenders, paying more attention to the source of the data and information used in finalizing settlement (title searching, valuation and the like) could hold the key. This means data reporting collected in a more robust, accurate and verifiable fashion. Read More