Servicing

The company says its first quarter net income nearly doubled from its showing in Q4 2020, due in part to cost-cutting and servicing income. It also revealed more information about unauthorized payment drafts by its vendor.

A total of 480,000 customers may have been affected by the duplicate drafts and so far it looks like far fewer than 1% of them incurred non-sufficient funds fees, Mr. Cooper said Tuesday.

The modifiable templates are a follow-up to a similar notification the organization created in 2019 for lender use.

The incident points to a risk mortgage companies should be aware of as they shift to digital servicing strategies.

Despite falling from quarter to quarter, Flagstar’s mortgage revenues remained strong, while its servicing portfolio grew.

Though the government-sponsored enterprises have some of the lowest forbearance rates in the market, they expect to contend with a significant population of borrowers who face steep financial setbacks after the pandemic ends.

The Consumer Financial Protection Bureau disputes a district court ruling that misconduct claims against the company were already covered by a previous settlement.

The persistently slow reduction in the number of borrowers at risk of default indicates that while loan performance overall is improving, a substantial pool of mortgages will need workouts when forbearance ends.

The Dallas company agreed to sell MSRs tied to $14 billion of mortgages to PHH Mortgage.

Fannie Mae and Freddie Mac’s new limits on loans secured by investor properties and second homes may put pressure on applicants to misrepresent their occupancy status.