With fewer loan set-ups and payoffs to manage than in the previous two years, the cost of mortgage servicing decreased and productivity improved in 2004, according to the Mortgage Bankers Association.The weighted average direct servicing cost dropped to $80 per loan in 2004, compared with $91 per loan in 2003. Loan servicing productivity increased to 1,188 loans serviced per employee in 2004 from 1,043 the year before. Indirect costs also improved, with mortgage servicing right amortization and writedowns (net of hedging) averaging $397 per loan, compared with a high of $511 per loan in 2003. The cost-of-servicing study, now in its seventh year, included participation from lenders that service 57% of all home loans, the MBA said. The association can be found online at http://www.mortgagebankers.org.
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The massive mortgage business saw a first quarter profit mitigated by nearly $300 million in hedging losses.
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The Consumer Financial Protection Bureau has seen excessive property-inspection charges, fees that loan mods should eliminate and improper line-item labels.
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Michael Tannenbaum, whose experience in the financial services industry spans over 15 years, has a track record of helping companies scale and grow.
April 24 -
A majority of consumers earning more than $100,000 annually said they were concerned about their own ability to purchase a home, demonstrating how affordability issues are impacting those at many socioeconomic levels, the University of Michigan study found.
April 24 -
The nonbank's results add to other indications that the first quarter's "higher for longer" rate scenario had an upside for efficient servicing operations.
April 24 -
The latest rate increases contributed to a 1% drop in purchases from the previous week and 15% annually, according to the Mortgage Bankers Association.
April 24