Understanding Today’s Connected Borrower

Sign up for this webinar to learn how to transform the borrower journey from transaction to relationship and gain a significant lift in production in today’s digital lending environment.

RealTrending: eXp’s Glenn Sanford reveals what’s next for company

CEO of eXp World holdings addresses his critics about his agent referral program, where he is taking the company next and growth limiters for the brokerage.

Navigating Closing Struggles in 2021’s Purchase Market

Join this webinar to discover the most current information on hybrid and full eNote eClosings and discuss key criteria to successfully implementing your eClosing strategy.

Should lenders look to non-QM when the refi boom slows?

Angel Oak shared with HW how non-QM lending could be an effective way for lenders to replace lost business in the event of a refi boom slowdown.

Investments

Legg Mason’s Miller bullish on subprime servicers like Nationstar

Sees growth opportunity, not danger

Legg Mason chairman and chief investment officer Bill Miller told CNBC’s Squawk Box that Legg Mason is bullish on big subprime mortgage servicers like Nationstar (NSM).

"We think subprime, which was a disaster before, is a growth area now," Miller said. Legg Mason is one of the largest asset management firms in the world.

Miller also said he thinks reconstituted subprime lender Springleaf is a company to watch.

Nonbanks like Nationstar, Ocwen Financial (OCN) and Walter Investments (WAC) have been shaking up the MSR landscape riding on the explosive growth of the nonbank mortgage servicing business.

Nonbanks now service 72% of non-agency deals. Large nonbank servicers such as Ocwen and Nationstar have absorbed much of this product, with their total servicing portfolios growing by 250% and 100%, respectively, over the past 12 months.

Nonbank servicers have consistently been more proactive in their use of loan modifications and are seeing shorter overall timelines, despite concerns by some regulators about their growth and its affect on borrowers.

In February, Moody’s Investor Service cited concerns that each of the nonbank mortgage service companies will begin originating nonprime mortgages. Nationstar and Ocwen were both recent targets of Benjamin Lawsky, New York’s top banking regulator.

Miller also told CNBC that he hopes Citigroup (C) sells its subprime unit to Springleaf because it would be good for both companies.

Watch Miller talking about nonbanks here.

Most Popular Articles

Here it is: A bill to help first-time homebuyers

The newest iteration of a first-time homebuyer tax credit has several significant restrictions. And it’s not a tax credit.

Apr 15, 2021 By
3d rendering of a row of luxury townhouses along a street

Log In

Forgot Password?

Don't have an account? Please