Second-Lien Servicing Soars in 1Q07

As opposed to residential second-lien lending, which saw flat results in the first quarter, second-lien servicing gained substantially over the same period, based on the top residential second-lien servicers' gains at March 31.

According to MSN's data affiliate, the top 25 second-lien servicers serviced $832.3 billion in seconds at March 31, an 87% gain from the $444.4 billion serviced in the year-earlier period. Out of the 25 servicers surveyed, 16 saw increases in volume. Also, of those 16, three saw triple-digit percentage increases.

The company to see the largest gain was Salt Lake City-based subprime specialist Select Portfolio Servicing, which serviced nearly $3.4 billion in seconds at March 31, a whopping 253% up from the $960 million it serviced in the same period the year prior. Ocwen Loan Servicing LLC, West Palm Beach, Fla., serviced $6.5 billion, up 223% from last year. Navy FCU, Merrifield, Va., serviced 130% more in seconds at the end of March compared to the end of March 2006.

Also, O'Fallon, Mo.-based CitiMortgage Inc. saw a 91% increase in servicing volume at March 31, compared to the same period the year prior.

Only four of the top 25 servicers saw declines in volume, with Melville, N.Y.-based American Home Mortgage Investment seeing the biggest drop, a significant decline of 16% (most recently, the news on the American Home Mortgage front is the company's filing for bankruptcy protection).

Countrywide Financial Corp., Calabasas, Calif., experienced a 12% drop in servicing volume from the year-earlier period. Novato, Calif.-based GreenPoint Mortgage Funding saw only a 5% dip, and Charlotte, N.C.-based Wachovia only a 4% decline.

Five of the second-lien servicers surveyed -- LLC (a GMAC company); Rosemont, Pa.-based Sovereign Bank FSB; Cheshire, Conn.-based Webster Bank; Glen Allen, Va.-based Morgan Stanley/Saxon Mortgage; and Irvine, Calif.-based Option One Mortgage Corp.- did not have comparable figures from the year-earlier period.

Snapshot: Top 25 Second Lien Servicers

Total Volume 3/31/07 $832.3 Billion

Total Volume 3/31/06 $444.4 Billion

Yr-over-Yr Change Up 87%

Source: MSN Database Products Group? (c) 2007 Mortgage Servicing News and SourceMedia, Inc. All Rights Reserved. http://www.bondbuyer.com/ http://www.sourcemedia.com/

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