Servicing

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.

Mortgage companies will need to obtain and maintain relevant data on loans starting in March of next year even if they are only handling payment-related activity, according to the Federal Housing Finance Agency.

The new leaders named at the company highlight what appears to be some heavy recruiting from the ranks of executives who previously worked for a government-sponsored enterprise or a GSE joint venture.

A few studies released Tuesday add to expectations that the small number of mortgages remaining in forbearance will contribute to a higher foreclosure rate in the future.

Only Essent saw a decline in profitability on a quarter-to-quarter basis during what ended up being a much better period for the business than for its mortgage lender clients.

The changes, which appear to be separate from a controversial nonbank proposal that's pending, will reduce red tape for credit unions and housing finance agencies and clarify a calculation for loans eligible for repurchase.

Waning mortgage activity slashed net income 72% in the second quarter to $58.3 million.

The company is withdrawing from consumer-direct lending and making other reductions given that widening spreads failed to offset savings from aggressive layoffs and gains in servicing advisory services.