Servicing

Multiplying federal and state regulation that has triggered the issuance of new rules and requirements further down the chain at the local level is mounting pressure on mortgage banks in search of new ways to conduct mortgage loan reviews and ensure they stay in compliance.

On July 21, 2010, President Obama signed a bill that literally overhauled every corner of the financial industry—Dodd-Frank became an immediate game changer. Among other it contains an obscure provision that may fail to catch people's attention.

Property valuation compliance requirements are challenging lenders and servicers as much as home price fluctuations.

Regulatory pressures have given the mortgage industry headaches along with a renewed motivation to create more efficient solutions.

As Fannie Mae's July 1 deadline approaches, lenders and servicers must meet the GSE's requirement to satisfy homeowners association claims in order to preserve their first lien position.

Loans included in commercial mortgage-backed securities had an 8.85% delinquency rate at the end of March, compared to 8.56% at yearend.

Applications for FHA-insured mortgages dropped by nearly 25% in April as the Federal Housing Administration implemented a premium hike announced in early March.

Stonegate Mortgage, which currently controls $2 billion of mortgage servicing rights, hopes to almost double that amount by yearend.

Bank of America over the past two weeks has unloaded roughly $12.4 billion of legacy mortgage servicing rights, selling most of it to Nationstar Mortgage.

As a general rule of thumb, a short sale brings in 10% less than a regular sale, but an REO sale brings in one-third less.