Subservicing

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.