Servicing

Fannie reported comprehensive net income of $5.4 billion in the second quarter, a stunning 74% improvement from 1Q and will require no financial assistance from the U.S. Treasury Department.

PHH Corp., the parent company of the nation’s largest nonbank mortgage lender, lost $57 million in the second quarter and signaled its intention to reduce its presence in the correspondent lending channel where it ranks seventh nationwide.

Refinancings of Fannie Mae and Freddie Mac loans with LTV ratios above 125% surged in June as lenders were able to securitize and sell these severely underwater loans for the first time.

Controversy about what method leads to higher real estate valuation accuracy and realistic pricing is keeping up competition between vendors striving to custom fit their tools to the changing needs of their lender and servicer clients.

MetLife, the insurer seeking an exit from banking to limit U.S. regulation, was penalized $3.2 million by the Federal Reserve for lapses tied to the servicing of loans and handling of foreclosures.

Based on his public comments, DeMarco is not unsympathetic to the plight of underwater (but current) borrowers but there is no doubt in his mind that the adoption of a principal reduction program would spur a massive wave of strategic defaults by GSE mortgagors.

The latest monthly prepayment numbers bear out expectations that refinancing sparked by recent record-low rates has some legs, but they also show that the HARP response is leveling off and the reaction to FHA MIP reductions has been muted, according to Credit Suisse.

The second quarter report shows nearly 38,400 Freddie loans ($8.1 billion) with LTVs above 125% were refinanced during the first-half thanks to the HARP 2.0 changes.

LenderLive Network has been selected to become a mortgage servicer for Fannie Mae and Freddie Mac.

The web portal will provide homeowners with information that helps them make knowledgeable decisions about what foreclosure alternative options are available to pursue.