Subservicing

Citigroup's decision to exit mortgage servicing by the end of 2018 is part of a long-term strategy to increase returns and sharpen the bank's focus on its core retail customers.

Citigroup's plans to sell a $97 billion mortgage servicing portfolio and subservice its remaining accounts highlights the growing prevalence of nondepository servicers and raises questions about how much capacity exists for these institutions to absorb more large deals.

New Residential Investment Corp. is planning a public offering of more than 49.2 million shares of its stock to pay for its purchase of mortgage servicing rights from CitiMortgage.

Citigroup plans to exit the mortgage-servicing business by the end of 2018 to focus on making new loans.

Nonbank servicers should proactively ask for guidance on the Consumer Financial Protection Bureau's muddled private-label servicing policies, as they are likely to soon be under scrutiny.

PHH is selling its remaining residential mortgage servicing portfolio to the real estate investment trust New Residential.

PHH Corp. plans to close a Buffalo, N.Y.-area office next year, which will result in the layoff of 80 employees, extending the staff reductions already taken in 2016.

While nonbank servicers are expected to continue to gain greater market share in 2017, much of that growth will come from their own loan origination activity rather than mortgage servicing rights purchases and subservicing, according to a report from Fitch Ratings.

PHH Corp. is getting out of the private-label mortgage origination business in the wake of Merrill Lynch ending its relationship, plus it is selling its Ginnie Mae servicing rights to Lakeview Loan Servicing.

By decreasing costs through technology, outsourcing and scale, servicers not only can give their margins a much-needed boost, but also set themselves up to reap rewards in the future.

Servicers have long skimped on technology investment, leaving legacy systems that can't keep pace with compliance demands. But rising costs and a new round of regulations are compelling both servicers and vendors to finally address these deficiencies.

Bank of America has ended its agreement with PHH Corp. that saw the Mount Laurel, N.J.-based company perform private-label originations for Merrill Lynch.

Credit union service organization myCUmortgage has launched a new mortgage servicing operation, providing its members with another option to deal with the payment function.

PHH Corp. will lose nearly a third of its subservicing portfolio as HSBC Bank agreed to sell the mortgage servicing rights on 139,000 loans.

Nationstar Mortgage Holdings is still in the red in the second quarter, as mark-to-market adjustments due to interest rate drops more than offset an increase in servicing revenue.

Incenter Mortgage Advisors is brokering the sale of a $1.6 billion Freddie Mac residential mortgage servicing rights portfolio for an undisclosed independent mortgage banker.

Seneca Mortgage Servicing has chosen Nationstar Mortgage Holdings as the subservicer for its existing mortgage servicing rights portfolio as well as for future acquisitions.

For banks looking to enter or expand their mortgage servicing rights business, there is a pressing question: Are the best years for MSRs behind us or do current market conditions offer a favorable risk/reward opportunity?

Flagstar Bancorp reported an increase in net income during the first quarter, mainly on higher interest income and a larger release of loan loss reserves.

The California Supreme Court's recent ruling that a borrower has the right to challenge a wrongful foreclosure opens the door for a tighter mortgage market while leaving key questions about future borrower lawsuits unanswered.