Servicing

Servicing risks tied to Veterans Administration-backed loans has left some firms exposed to losses that, among other things, create challenges when it comes to trading the underlying MSRs, but some market participants are showing interest in doing something to improve the situation.

GMAC Mortgage on Friday said it will no longer purchase loans originated by mortgage correspondents or brokers in Massachusetts, citing the regulatory environment in the state.

Over the past week or so Bank of America began telling a select group of its warehouse lending clients that their lines would terminate within 30 to 90 days.

For several months Fannie Mae has insisted that it's not in the servicing business, but a recent 10-Q filing by the government-owned GSE reveals that it agreed to buy $74 billion of MSRs from Bank of America in the third quarter. No purchase price was disclosed.

Massachusetts on Thursday sued the nation's five largest residential servicers, alleging their foreclosure practices were unlawful and deceptive.

PHH Corp., Mt. Laurel, N.J., plans to sell $250 million of unsecured debt, using the proceeds to pay off an equal amount of debt that comes due next April.

The Federal Housing Administration is considering raising insurance premiums on loans above $625,500, according to HUD secretary Shaun Donovan.

The Prestwick Mortgage Group, Alexandria, Va., is brokering a $40 million package of Freddie Mac servicing rights for a community bank based in Florida.

Treasury Secretary Tim Geithner late this week had a message for those hoping to water down last year's financial regulatory overhaul — it's not going to happen.

The Federal Housing Administration endorsed $15.7 billion of single-family loans in October, a 3% decline from the previous month, according to new figures released Thursday morning.