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.
Layton has over 35 years of experience in financial services and as a corporate leader. He worked for nearly 30 years at JPMorgan Chase and its predecessors, starting as a trainee and rising to vice chairman and member of the three-person Office of the Chairman, retiring in 2004..
"The questions become, ‘Do the courts find a distinction between housing policy and lending, as in whether to make a loan and how you price that loan? Does the government get broader discretion than the private sector?’ ” Andreano said. “It’s not fleshed out.” Read More