Servicing Newslinks Archive

“Mortgage lenders with servicing portfolios experienced significant fluctuations in the valuation of their mortgage servicing rights related to corresponding interest rate fluctuations during 2016. Most servicers reported net servicing financial losses in the first half of the year, followed by recoveries by the end of the year.”–Marina Walsh, MBA Vice President of Industry Analysis.

“PACE loans are, in substance, mortgage-related financing and should adhere to federal mortgage financing rules. This legislation will subject PACE loans to the same Truth in Lending Act consumer protections required of other applicable mortgage products. We look forward to continuing to work with Congress on this very important issue.”–MBA President and CEO David Stevens, CMB.

“Regulatory uncertainty, combined with heightened enforcement risk have forced many responsible lenders to reconsider their ability to lend to the full extent of the credit box. These decisions ultimately impact the consumer, and often disproportionately impact low-to-moderate income borrowers, minorities and first-time homebuyers.”–MBA Chairman-Elect J. David Motley, CMB, in testimony before a House subcommittee.

“Mortgage lenders reported a combination of both lower revenues and higher expenses. On the revenue side, secondary marketing income dropped as mortgage lenders wrestled with less favorable pricing and pipeline challenges. At the same time, production expenses per loan rose as fixed costs were spread over fewer loans.”–MBA Vice President of Industry Analysis Marina Walsh.

“Because debt is ‘stickier’ and outstanding loan balances don’t automatically adjust to changes in prices, mortgage debt outstanding remained stable. In the years since, prices bounced back and now exceed their pre-recession levels, while mortgage debt outstanding–which hadn’t declined–rose at a much slower pace. The ratio between the two is now back to where it was before the recession.”–MBA Vice President of Commercial Real Estate Research Jamie Woodwell.

“For most investor groups, commercial and multifamily mortgage delinquencies are at or near their all-time lows. Only loans in commercial mortgage-backed securities continue to show elevated levels of delinquencies and loans in foreclosure, as the market continues to work through the large volume of mortgages made during the 2005-2007 time period.”–MBA Vice President of Commercial Real Estate Research Jamie Woodwell.

“G-fees are a critical risk management tool used by Fannie Mae and Freddie Mac to protect against losses from loans that default. Increasing g-fees for other purposes imposes an unjustified burden on homeowners who would pay for any increase through higher monthly payments for the life of their loan.”–From an MBA/trade group letter urging support of a House bill that would prohibit use of Fannie Mae/Freddie Mac guaranty fees to offset other budget spending.

“When we talk about housing finance reform, the word ‘reform’ is the key word. The GSEs’ business models can’t be repeated, knowing that they drew $180 billion from the taxpayers…We can wall off the dual goals of meeting taxpayer and investor needs.”–MBA President & CEO David Stevens, CMB, on CNBC’s Squawk Box Feb. 24.

“It is not unexpected that delinquencies could eventually increase off such a low base. We continue to see strong fundamentals in the overall economy, such as rising home values and increased employment, which bodes well for the future performance of FHA, VA and conventional loans.”–MBA Vice President of Industry Analysis Marina Walsh.

“Despite this upward trend over the past five years, the massive loss of home equity during the housing crisis forced many homeowners to stay in their homes longer before selling, effectively disrupting the historical domino effect of move-up buyers that feeds both demand for new homes and supply of inventory for first-time homebuyers.”–Daren Blomquist, senior vice president with ATTOM Data Solutions, Irvine, Calif.