Servicing

The Consumer Financial Protection Bureau's crackdown on mortgage servicers' operations will increase the pressure on lenders to improve their processes, paperwork and communications with borrowers. National Mortgage News journalists discuss how both banks and nonbank servicers can get ahead of the new regulatory scrutiny.

After eight straight profitable quarters and record annual income, Fannie Mae's dividend payments to the U.S. Treasury now exceed the bailout funds it's received since 2008.

Having all the information about a borrower’s loan status readily available and being able to prove a servicer made an effort to reach out to a distressed homeowner are critical.

Ocwen Financial raised less than underwriters expected by selling bonds tied to fees from managing government-backed loans as the mortgage servicer’s shares fell to the lowest since December 2012.

The giant servicer wants third-party property sellers to use its online auction portal.

The Mortgage Bankers Association is trying "to get the regulators to just be aware of where one rule conflicts with another," says the trade group's president, David Stevens.

Lower volumes and increased regulation are leading more lenders to consider outsourcing. But the savings and compliance improvements must outweigh increased liability for contractors and a rise in offshore prices.

Once written off as an endangered species, nonbank home lenders are making a comeback in the third-party origination businesses abandoned by banks since the financial crisis.

The rate of new foreclosures dropped to the lowest level in eight years as rising property prices erased negative equity and allowed more delinquent homeowners to sell without losing money.

The rapid growth and increasing regulatory scrutiny of nonbank mortgage servicers could "severely" affect the whole industry, Mortgage Bankers Association Chairman-Elect Bill Cosgrove says.