Servicing

New capital standards the government bond insurer added were lower than the ones in previously proposed rules that had riled lenders and servicers.

The latest increase suggests the housing finance industry is half done with its transition from extraordinary pandemic relief back to more normal loan performance.

The move will reduce the excess capacity in the field but the effects on servicing are likely to dampen the Federal Housing Administration market, Keefe, Bruyette & Woods said.

Insurers and Uncle Sam are having trouble footing bills for mounting climate-related risks, particularly in regions prone to hurricanes and wildfires.

The Federal Housing Finance Agency wants to change some of the government-sponsored enterprises' targets in ways that could create more low-income rental units as higher costs squeeze tenants.

Pandemic-related payment suspensions dropped notably for loans held in bank portfolios and private-label securities, but numbers for large government-related markets leveled off, according to the Mortgage Bankers Association.

Payment for the whole loan and servicing-rights trading platform will be a mix of cash and stock, with the price and closing of the deal subject to certain contingencies.

Recent reports highlight the question of how much wage growth can do to sustain loan performance as pandemic relief gets rolled back, consumer costs rise and the housing market cools.

The company and its portfolio manager Ashish Negandhi, who was also penalized, allegedly misinformed investors about delinquency rates in a 2018 fix-and-flip securitization.

The lending and servicing giant is also amping up cost-saving efforts with more layoffs after reporting a net loss of $223.8 million in the second quarter.