 | | | | By Paul Muolo pmuolo@imfpubs.com Although regulatory announcements concerning servicing transfers continue to worry sellers of receivables, the auction circuit for bulk product continues to hum along. Over the past few days, just over $7 billion in bulk auctions were announced by three different advisory firms. The largest is a $3.17 billion Ginnie Mae mortgage servicing portfolio from Interactive Mortgage Advisors. The seller was not identified, but according to the offering circular, delinquencies total 5.37 percent with foreclosures running at 2.54 percent. Mortgage Industry Advisory Corp. is offering a $2.3 billion package of Fannie Mae and Freddie Mac receivables. Delinquencies total 1.32 percent. And MountainView Servicing Group is selling $1.6 billion of Fannie and Ginnie rights. Late payments on that package total 1.21 percent with no foreclosures. Servicing advisors told IMFnews that many of the bulk deals they have been seeing of late are $4 billion in size or under. Other areas of interest: Servicing, Secondary/MBS, Mergers & Acquisitions, Fannie, Freddie, Ginnie Mae/FHA, Mortgage Lending & Servicing | | By Charles Wisniowski cwisniowski@imfpubs.com The leader of a group of disenfranchised GSE shareholders is vowing not to give up on his push to have the Federal Housing Finance Agency use its regulatory power to immediately end the GSE conservatorships. Investors Unite Executive Director Tim Pagliara told Inside The GSEs, an affiliated publication, that he secured some brief face time with FHFA Director Mel Watt during a public event in Atlanta last week. The director, he said, was polite but unmoved by IU’s call for Watt to use his authority to end the GSE conservatorships and what stakeholders consider the government’s illegal “net worth sweep” of profits earned by Fannie Mae and Freddie Mac. “We wrote him a thank you note after [and said] we are available to be a productive part of the dialogue that starts with following the rule of law,” said Pagliara. The CEO of CapWealth Advisors contends that GSE investors (like him) were essentially swindled by the government when Uncle Sam implemented the profit sweep, contrary to securities laws and historical precedent. Boasting close to 1,000 members – both common and preferred stakeholders – Pagliara said that while individual members may opt to join the various legal actions against the government, IU’s mission is strictly to defend their rights by lobbying the public and policymakers. For more details, see the new issue of Inside The GSEs, available online Friday. Other areas of interest: Originations, Servicing, Regulatory, Fannie, Freddie | | By Brandon Ivey bivey@imfpubs.com The Consumer Financial Protection Bureau’s proposed expansion of data collected under the Home Mortgage Disclosure Act poses privacy concerns so large that mortgage lending might cease altogether, according to Leonard Ryan, president of QuestSoft. During a company webinar, Ryan expressed his concern that expanded data collection could increase identity theft. “A lot of this issue for me is very high-end, like NSA [National Security Agency] type,” he said, raising concerns that the data could be viewed by entities beyond federal regulators, such as hackers in Russia or China. “I’m wondering how many people buy homes outside of buying them with cash,” Ryan said during the webinar. “To me, it’s that serious.” In July, the CFPB proposed adding 40 data fields to be collected under HMDA. Some of the proposed fields were required by the Dodd-Frank Act, while others were proposed at the federal regulator’s discretion. Comments on the proposal are due Oct. 22. Ryan conceded that the CFPB is still considering which of the new data will be disclosed to the general public. The CFPB said a public release of HMDA data should be modified only when the release of the unmodified data creates risks to privacy that are not justified by the benefits of releasing the new data. The federal regulator also appears to be leaning toward withholding all of the new data from public disclosure, at least in the first year the new data is collected, which will be 2016 at the earliest. Other areas of interest: Originations, Servicing, Secondary/MBS, Regulatory, Technology | | By Paul Muolo pmuolo@imfpubs.com The Consumer Financial Protection Bureau this week gave notice that it will require mortgage firms engaged in “significant servicing transfers” to prepare and submit detailed “informational plans” on how they will protect consumers who are engaged in loss mitigation help or trial loan modifications. An agency spokesman told IMFnews that as a “general matter” the CFPB considers transfers significant if they involve at least 5,000 loans. “At every step of the process to transfer the servicing of mortgage loans, the two companies involved must put in appropriate efforts to ensure no harm to consumers,” said CFPB Director Richard Cordray in a statement. “This means ahead of the transfer, during the transfer, and after the transfer.” The consumer watchdog agency believes there is a heightened risk inherent in transferring loans (servicing rights) that are the subject of loss mitigation, including the risk that documents and key financial information are not accurately transferred. In January of this year, the agency’s new “common sense” mortgage servicing rules took effect, requiring processors to maintain accurate records, promptly credit payments, and correct errors on request. Among other things, the new regulations also require servicers to maintain policies and procedures to facilitate the handover of information when a servicer transfers a loan to a new company. Those rules and the new bulletin likely will have more of an impact on the sale of “legacy” MSRs as opposed to newly created rights. By its nature, legacy product has higher delinquency rates. Other areas of interest: Servicing, Secondary/MBS, Regulatory, Mergers & Acquisitions | | By Paul Muolo pmuolo@imfpubs.com Pacific Union Mortgage, Irving, TX, has hired four new executives who will spearhead efforts in such areas as loan servicing, consumer-direct lending, wholesale originations and technology. The most senior hire is John Dunnery who was named senior vice president of PUM’s loan servicing division. He joins the $9 billion servicer from JPMorgan Chase where he was vice president in charge of “Chase’s response to the GSE’s compensatory fee and penalty initiatives and was responsible for resolution of escalated delinquent loans,” according to a statement issued by PUM. During his career, Dunnery was also a director within Fannie Mae’s national servicing organization. The other hires at Pacific Union include Paul Gorske who will serve as senior vice president of information technology; Ed Powell, who will be in charge of direct sales; and Paul Ferrando, who was named senior vice president of wholesale operations. Ferrando comes to the lender from Wells Fargo where he held the title of senior vice president of centralized retail operations. During his career he has worked at such shops as Aurora Loan Services, CitiMortgage and First Union. Other areas of interest: Originations, Servicing, Personnel | | By Paul Muolo pmuolo@imfpubs.com Every so often we check in with Jon Daurio, the former subprime executive who’s still trying to raise money to start a non-agency lender. After roughly 20 months of pounding the payment, Daurio is still working on his capital raise. He told us: “I have some hot irons in the fire.” From what we can tell, the only significant (post-crash) non-agency capital raise (real money, not commitments) is the $200 million garnered by Citadel Loan Servicing of Irvine, CA… Last week, we mentioned a $350 million “debt commitment” to a non-agency lender called Privlo. Demetris Papademetriou, a partner in Middlemarch, which assisted with the commitment, clarified to IMFnews that Privlo definitely did not raise that much cash upfront and that the money is in the form of pledges by investors to buy loans that Privlo funds in the future. Who are these investors? Papademetriou would not say. Since its founding in 2010, Privlo has originated just $28 million in mortgages. Citadel Loan Servicing, on the other hand, is funding at least $15 million a month… Consultant Joe Garrett of Garrett, McAuley & Co. writes in his new company newsletter that Comerica Bank is looking to hire a mortgage warehouse relationship manager in its Los Angeles office. The warehouse business was hurting during the first two months of the year, but in the spring began to see usage rates increase. From what we understand, Von Ringger still heads the warehouse group at the bank… Not only did the Consumer Financial Protection Bureau issue a new bulletin on servicing transfers Tuesday, but it warned that the agency continues to monitor the servicing market and “may engage in further rulemaking in this area”… IN CASE YOU MISSED IT: Fannie Mae in late July said it will allow for shorter waiting periods involving mortgage debt charge-off accounts and mortgage debt that is discharged through a bankruptcy. Some lenders we spoke to about this guideline change believe it’s significant, others not so much.
Your Mortgage Disclosure Planning Needs to be in Full Swing Now While there’s a year left before the Consumer Financial Protection Bureau’s integrated mortgage disclosure final rule takes effect, mortgage compliance experts are warning that lenders need to prepare NOW for major changes in the whole mortgage origination process that must be made to accommodate the new disclosures. Find out what you need to know – and do – at Inside Mortgage Finance’s September 11, 2014, 2:30 pm webinar: “Planning for New Disclosures: The Time Is Now.” Our team of experts will examine the changes required under the new rules – and, most importantly, take you through what you should be doing now to ensure the smoothest transition to the new requirements. Register now…early bird discount ends Thursday, Aug. 21. Other areas of interest: Originations, Servicing, Personnel, Regulatory, Mergers & Acquisitions, Nonconforming, Fannie, Warehouse | | | |
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