"Nothing is really being put out for bid right now," Ocwen executive chairman William Erbey recently said. "It's the whole market that's basically stopped."
Brokers of servicing rights say the overall market remains robust, despite suggestions by Ocwen's William Erbey last week that trades had ground to a halt. Trading of seriously delinquent portfolios has slowed on concerns about increased liability.
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"Investor loans were responsible for an enormous amount of credited relief," says Laurie Goodman at the Urban Institute. "This was very, very clearly more than was originally thought would be provided through investor loans."
Mortgage bondholders have long complained to regulators that the national mortgage settlement gave large bank servicers credit for principal reductions and loan modifications they did not pay for themselves.
Image: Bloomberg News
Regulator Benjamin Lawsky is concerned that Hubzu, a website run by Ocwen's Alitsource affiliate, charges inflated fees "through conflicted business relationships" at the expense of mortgage investors and strapped homeowners.
The days of seeking 20% market share in mortgages
B of A caught observers off guard by announcing $6 billion in mortgage litigation expenses, but the move is an attempt to convince analysts and investors that there is an end in sight to its crisis-era legal woes. It just might work.
WAKE-UP CALL:
Ginnie Mae has halted the transfer of mortgage servicing rights from Bank of America to a nonbank servicer because of missing documents. The agency is asking the top servicers for an inventory of loans with missing documents.
“Downtown and midtown are recovering nicely, but neighborhood revitalization is the key to a successful turnaround of Detroit,” says David Provost, Talmer’s chief executive.
The Michigan company has pledged $1 million to help people buy homes in the Marygrove College neighborhood. Homeowners can get up to $25,000 and have $5,000 shaved off the balance each year they live there.
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