Servicing

The scheme highlights a risk that could grow as distressed borrowers exit forbearance.

The Federal Housing Administration confirmed the exclusion of real estate taxes and hazard insurance premiums, and discussed timelines.

The year-over-year increase in reports was the largest in several years for both lending/finance companies and government-sponsored enterprises, according to the Treasury Department’s Financial Crimes Enforcement Network.

The permanent staff reductions appear to be concentrated in originations, where pretax income has been lower and outpaced by earnings generated by the servicing division, in line with broader industry trends.

More than half of the seriously delinquent mortgages that did not have this type of payment relief were originated prior to ability-to-repay requirements enacted following the Great Recession, the latest Federal Reserve Bank of Philadelphia study found.

The Department of Housing and Urban Development’s inspector general said the Federal Housing Administration needs to improve guidance for servicers and improve controls.

Emergency legislation written early in the pandemic changed how things were done to protect borrowers with accommodations for hardships, and mortgage companies need to be careful as things return to normal.

The number of people that have paid late in the near term has increased, according to multiple recent reports.

More than 500 employees will be affected by the acquisition, which includes rights related to 140,000 residential loans, but Community Loan Servicing will retain its name and commercial operations.

While smaller in number, initiated foreclosures had a similar consecutive-quarter gain as the market transitioned away from pandemic-related relief that has artificially constrained workout activity.