Servicing

PIMCO has received commitments of up to $1 billion to invest in jumbo mortgages as part of a conduit project which carries the working name of 'Project Bravo,' according to secondary market officials.

By the time you read this, the second jumbo MBS deal in 10 months will be wrapped up and sold to clamoring investors—but not without a minor controversy concerning the rating of this $290 million “nonconforming” bond.

Servicers are facing a challenging future where the way they redefine their risk-pricing measures will determine their ability to survive.What makes the challenge unprecedented, MBA’s chief economist Jay Brinkmann said at the National Mortgage Servicing Conference in Dallas, is a business environment where lenders are forced to take risks they have no control over.

Todd Whittemore, the newly appointed executive vice president of master risk management of Digital Risk LLC, Maitland, Fla., attended the Mortgage Bankers Association’s National Mortgage Servicing Conference in Dallas to stay current on market issues and trends in servicing demand.

Federal regulators have drafted a 'qualified residential mortgage' rule that mandates a 20% downpayment for such loans while leaving mortgage insurance totally out of the equation -- a move that could prolong the housing recession in several states and decimate the mortgage insurance industry.

Essent Guaranty Inc., the nation's newest private mortgage insurer, says it will protect mortgage lenders from having their claims "unfairly denied for immaterial misrepresentation, underwriting errors and missing documents."

Servicers are bracing for a challenging future where the way they redefine their risk-pricing measures will determine their ability to survive.

PHH Corp., Mt. Laurel, N.J., reported net earnings of $181 million for the fourth quarter and $48 million for the full year 2010, helped by strong performance in its mortgage segment, company executives said.

After months of infighting, the federal banking agencies have reached an agreement on risk retention standards that would include some new rules for servicers, according to sources familiar with the matter.

The Obama administration has gained plaudits from even conservative critics by calling for the dismantling of Fannie Mae and Freddie Mac. But a growing number of observers are arguing that one of the Treasury Department's proposed replacements is effectively the same system by another name.