Late this week we were hearing reports that the Treasury Department might be looking for outside help on evaluating servicing rights. The question, of course, is why?…
By now it’s old news that Fannie Mae bought $74 billion in mortgage servicing rights from Bank of America, even though the GSE has told us on many occasions that it’s not in the servicing business. But let’s look at the deal for a second: $74 billion of MSRs with only 20% of it in delinquency? That means almost $60 billion of it is performing which would make it the 18th largest servicer in the U.S., according to National Mortgage News and the Quarterly Data Report. If Fannie paid B of A nothing for the MSRs perhaps there’s little to squabble about but the GSE’s presence in the business has finally caught the eye of the Mortgage Bankers Association, which complained about it in a recent comment letter to the Federal Housing Finance Agency. On one hand MBA can argue that a taxpayer-funded organization (Fannie) is using tax receipts (in a way) to buy MSRs on the open market, competing with private sector firms. Meanwhile, is the driving force (the operative word here being “driving”) behind FHFA changing servicing compensation fees. MBA calls this a “conflict of interest.” It would be nice if someone in Congress or the Senate opened the lid on what exactly Fannie is doing because, to date, the GSE and its regulator have said next to nothing. Perhaps, the issue is too complicated for Congress. But maybe not. Hopefully Reps. Randy Neugebauer and Darrell Issa are reading this…
SOME GOOD NEWS FOR LOAN BROKERS: Is the brokerage sector back? Don’t pop the champagne quite yet, but brokers amassed a 9.2% market share in the third quarter compared to an all time low of 6.8% in the third quarter. The nation’s top two wholesalers were Provident Funding and U.S. Bank Home Mortgage. The complete wholesale list is in the brand new edition of the QDR. To see a sample and order drop an email to Deartra.Todd@SourceMedia.com...
Meanwhile, brokers must be licensed and approved. Bank LOs do not. Why? We’re told the Consumer Financial Protection Bureau might take up this issue next year. Stay tuned…
THIS JUST IN: A company called Intercontinental Exchange Inc. recently bought an auction company that deals with nonperforming loans—so says one source who claims to have knowledge of the deal. If you have more info on this drop me a line at Paul.Muolo@SourceMedia.com…
In other NPL news, Arch Bay Capital is applying a new reward program provided by Loan Value Group, Rumson, N.J., to unspecified loans in its portfolio. Reporting by NMN’s Bonnie Sinnock…
Craig Cole, a former mortgage production chief who recently retired from Union Bank, San Francisco, has launched a new consulting firm to advise clients on their jumbo lending and execution strategies. The business is called Emerald Consulting LLC…
NO LONGER WITH US: Joseph E. Robert Jr., 59. Joe founded JER Partners in the early 1980s and was an important early investor in troubled real estate assets sold by the Resolution Trust Corp. He died of cancer this week. I talked to him during the good old days of the S&L bailout. He was a great resource for reporters and had a keen sense of humor. I recall that after one Washington Post story treated him unkindly, he referred to the author (to me) as Kathleen “Darth Vader” Day. Joe was also one of the Washington area’s most successful financiers and a philanthropist.
ANOTHER EXAMPLE OF A WORLD AWASH IN CASH: Microsoft has $52 billion in cash on its balance sheet. General Electric just increased its dividend. Why invest in real estate and job growth when you can give out cash to shareholders?
WASHINGTON NEWS: Fannie Mae recently told its seller/servicers that all mortgage insurance rescissions, cancellations and claim denials tied to loans it bought must be reported to the agency immediately. Full story at www.nationalmortgagenews.com.
MORTGAGE PEOPLE: Reverse Mortgage Solutions said Robert D. Yeary will retire as CEO come Jan. 1. Replacing him is Marc Helm.
MUST ATTEND MORTGAGE SHOWS: From April 17-19 National Mortgage News and SourceMedia will hold their annual Mortgage Servicing Conference at the Omni Mandalay Hotel in Irving, Texas. For more information see the ads on our website.
DATA NOTE: NMN has gone to press with the brand-new third-quarter edition of the Quarterly Data Report, which boasts rankings on the nation’s top 100 lenders, servicers, wholesalers, correspondents and more. If you would like a sample send an email to Deartra.Todd@SourceMedia.com. Dee can also tell you about our MortgageStats.com product.
I'm on Twitter, discussing mortgage matters, and how the Giants will meet the Cowboys.
LAST WORD: It may be time to stop rooting for The New York Mets. I’ve been a fan since 1968, but enough is enough.
