It appears that PHH Corp. has a subservicing problem on its hands, as for the second time in four months, the company is about to lose a large portion of its mortgage subservicing portfolio. PHH disclosed Thursday that it recently received notice from HSBC Bank that it plans to sell the mortgage servicing rights on approximately 139,000 mortgage loans currently subserviced by PHH Mortgage Corporation, a wholly-owned subsidiary of PHH, on behalf of HSBC. In an 8-K filing with the Securities and Exchange Commission, PHH said that HSBC informed the company that the purchaser of the mortgage servicing rights does...
Falling Fast: UPB of Fannie Mae’s Mortgage Portfolio Plummets
Urban Institute reported earlier this month that the mortgage-related investment portfolios for bothFannie Mae and Freddie Mac continue to contract and were both well below their 2015 portfolio cap as of the end of November. Whereas Freddie Mac’s mortgage-related investment portfolio took an upward turn in December, however, Fannie Mae’s mortgage portfolio continued contracting at a substantial rate, according to Fannie Mae’s December 2015 Monthly Volume Summary. Fannie Mae’s gross mortgage portfolio contracted at a compound annualized rate of 25.1 percent in December, leaving the aggregate unpaid principal balance (UPB) of the loans in the portfolio at $345.1 billion. It...
Fannie Mae Offers Three Pools of NPLs totaling $1.2 Billion in UPB
Fannie Mae has announced its third sale of non-performing single-family mortgage loans (NPLs), this time in three pools totaling about $1.2 billion in unpaid principal balance (UPB). The three pools are comprised of approximately 7,000 loans combined. The non-performing loans are deeply delinquent, meaning many of the loans are likely either in some stage of loss mitigation or foreclosure. This NPL sale is being marketed in collaboration with Credit Suisse Securities, JPMorgan Securities, Bank of America Merrill Lynch, and the Williams Capital Group, according to Fannie Mae. “This is our third sale of non-performing loans, meant to reduce the number...
Freddie Mac Completes Largest Deeply Delinquent Loan Sale Ever at $1.1 Billion
By Brian Honea Freddie Mac announced on Wednesday its largest sale ever of deeply delinquent, non-performing loans from its mortgage investment portfolio, consisting of 5,208 loans serviced by Ocwen Financial with an unpaid principal balance (UPB) of approximately $1.1 billion. The sale was completed five days before the announcement (on September 11) and the transaction is expected to settle in October 2015. The sale is part of Freddie Mac’s Standard Pool Offerings (SPOs). The loans offered were delinquent by an average of three and a half years, meaning that the borrowers were likely previously evaluated for loss mitigation options or...
Fannie Mae and Freddie Mac Are Turning Up Efforts to Sell Non-Performing Loans
By Brian Honea As they promised earlier this year, Fannie Mae andFreddie Mac have intensified their efforts in the last few months to rid their single-family residential mortgage portfolios of deeply delinquent, non-performing loans (NPLs). On Thursday, Freddie Mac announced it ismarketing a bundle of NPLs with $1.2 billion in aggregate unpaid principal balance, the largest NPL sale to date. It is Freddie Mac’s sixth NPL sale of the year and the seventh overall; the first occurred last year in July. Including yesterday’s NPL transaction, Freddie Mac has offered nearly $4 billion worth of NPL sales over the last 13...
Freddie Mac’s Portfolio Expands for Fifth Straight Month, This Time by $4.5 Billion
By Brian Honea Freddie Mac‘s total mortgage portfolio expanded at an annualized rate of 2.8 percent in June, marking the fifth consecutive month and the 10th time in the last 12 months the portfolio has grown, according to Freddie Mac’s June 2015 Monthly Volume Summary released on Wednesday. The serious delinquency rate on Freddie Mac-backed single-family residential mortgage loans fell by another 5 basis points from May to June, down to 1.53 percent–virtually the same as the 1.52 percent serious delinquency rate reported for Freddie Mac-guaranteed loans in November 2008 at the start of the financial crisis. Freddie Mac’s serious...
Pence, Hensarling: Dismantling Dodd-Frank remains a high priority
It’s been a busy first week in office for President Donald Trump, with executive orders on immigration, energy, trade, health care, and more being handed down daily. But executive orders are just the preamble to the big initiatives that Trump and the Republican majority in Congress are expected to push for shortly. Chief among those is the “dismantling” of the Dodd-Frank Wall Street Reform Act. During the presidential transition, Trump’s transition team stated that dismantling Dodd-Frank would be one of the president’s main priorities. And on Thursday, the American public got a reminder that the president and his party plan...
Selling distressed loans to investors significantly cuts foreclosure rates
Despite skepticism by many advocates, the Federal Housing Administration (FHA) and Fannie Mae and Freddie Mac (the government-sponsored enterprises, or GSEs) increasing rely on auctioning off severely delinquent mortgages to private investors to dispose of these distressed assets. In January, we showed that sales of distressed or nonperforming loans (NPLs) have been effective from the borrowers’ and taxpayers’ perspectives, but these conclusions were based on limited data. Over the past few weeks, the FHA and the GSEs’ regulator, the Federal Housing Finance Agency (FHFA), have released new, more complete data, which allow us to confirm that this program significantly cuts...
By Brena Swanson Taking a break from the housing sessions that ran through the morning, attendees at the Housing America’s Families Forum in Dallas at the George W. Bush Presidential Library on Friday gathered for a light lunch and to listen to one of the most eagerly anticipated speakers for the day, House Financial Services Committee Chairman Rep. Jeb Hensarling. As a republican representative for the Dallas area, Hensarling didn’t have to travel too far for the event and even quipped about needing to get home to do some stuff for his wife. But before heading back home, Hensarling shared...
Donald Trump unveils plan to dismantle Dodd-Frank Act
Now that the dust is starting to settle from the election, a clearer picture is beginning to emerge of what types of actions President-elect Donald Trump will pursue once the “-elect” is removed from his title. Chief among those planned actions appears to a plan to “dismantle” the Dodd-Frank Wall Street Reform Act. Trump’s plans for the first days of his term as president are being revealed on a website launched by his transition team. Under a section titled “Make America Great Again,” the website lists the three main tenets of Trump’s plan: Making America Secure Again; Getting America Back...
Taking a break from the housing sessions that ran through the morning, attendees at the Housing America’s Families Forum in Dallas at the George W. Bush Presidential Library on Friday gathered for a light lunch and to listen to one of the most eagerly anticipated speakers for the day, House Financial Services Committee Chairman Rep. Jeb Hensarling. As a republican representative for the Dallas area, Hensarling didn’t have to travel too far for the event and even quipped about needing to get home to do some stuff for his wife. But before heading back home, Hensarling shared his hope for...
Trump Treasury pick: Fannie Mae and Freddie Mac will be privatized
After President-elect Donald Trump announced that he selected Steve Mnuchin, a former executive at Goldman Sachs and former chairman of OneWest Bank, to lead the Department of the Treasury, Mnuchin began making the media rounds with Wilbur Ross, Trump’s choice to lead the Department of Commerce. One of Mnuchin and Ross’ first stops was with Fox Business, and during an interview with Maria Bartiromo, Mnuchin dropped a bombshell about the future of Fannie Mae and Freddie Mac. Rather than be wound down, as some including another rumored choice to lead the Treasury, Rep. Jeb Hensarling, advocate for, Mnuchin said the...
It appears that PHH Corp. has a subservicing problem on its hands, as for the second time in four months, the company is about to lose a large portion of its mortgage subservicing portfolio. PHH disclosed Thursday that it recently received notice from HSBC Bank that it plans to sell the mortgage servicing rights on approximately 139,000 mortgage loans currently subserviced by PHH Mortgage Corporation, a wholly-owned subsidiary of PHH, on behalf of HSBC. In an 8-K filing with the Securities and Exchange Commission, PHH said that HSBC informed the company that the purchaser of the mortgage servicing rights does...
Falling Fast: UPB of Fannie Mae’s Mortgage Portfolio Plummets
Urban Institute reported earlier this month that the mortgage-related investment portfolios for bothFannie Mae and Freddie Mac continue to contract and were both well below their 2015 portfolio cap as of the end of November. Whereas Freddie Mac’s mortgage-related investment portfolio took an upward turn in December, however, Fannie Mae’s mortgage portfolio continued contracting at a substantial rate, according to Fannie Mae’s December 2015 Monthly Volume Summary. Fannie Mae’s gross mortgage portfolio contracted at a compound annualized rate of 25.1 percent in December, leaving the aggregate unpaid principal balance (UPB) of the loans in the portfolio at $345.1 billion. It...
Fannie Mae Offers Three Pools of NPLs totaling $1.2 Billion in UPB
Fannie Mae has announced its third sale of non-performing single-family mortgage loans (NPLs), this time in three pools totaling about $1.2 billion in unpaid principal balance (UPB). The three pools are comprised of approximately 7,000 loans combined. The non-performing loans are deeply delinquent, meaning many of the loans are likely either in some stage of loss mitigation or foreclosure. This NPL sale is being marketed in collaboration with Credit Suisse Securities, JPMorgan Securities, Bank of America Merrill Lynch, and the Williams Capital Group, according to Fannie Mae. “This is our third sale of non-performing loans, meant to reduce the number...
Freddie Mac Completes Largest Deeply Delinquent Loan Sale Ever at $1.1 Billion
By Brian Honea Freddie Mac announced on Wednesday its largest sale ever of deeply delinquent, non-performing loans from its mortgage investment portfolio, consisting of 5,208 loans serviced by Ocwen Financial with an unpaid principal balance (UPB) of approximately $1.1 billion. The sale was completed five days before the announcement (on September 11) and the transaction is expected to settle in October 2015. The sale is part of Freddie Mac’s Standard Pool Offerings (SPOs). The loans offered were delinquent by an average of three and a half years, meaning that the borrowers were likely previously evaluated for loss mitigation options or...
Fannie Mae and Freddie Mac Are Turning Up Efforts to Sell Non-Performing Loans
By Brian Honea As they promised earlier this year, Fannie Mae andFreddie Mac have intensified their efforts in the last few months to rid their single-family residential mortgage portfolios of deeply delinquent, non-performing loans (NPLs). On Thursday, Freddie Mac announced it ismarketing a bundle of NPLs with $1.2 billion in aggregate unpaid principal balance, the largest NPL sale to date. It is Freddie Mac’s sixth NPL sale of the year and the seventh overall; the first occurred last year in July. Including yesterday’s NPL transaction, Freddie Mac has offered nearly $4 billion worth of NPL sales over the last 13...
Freddie Mac’s Portfolio Expands for Fifth Straight Month, This Time by $4.5 Billion
By Brian Honea Freddie Mac‘s total mortgage portfolio expanded at an annualized rate of 2.8 percent in June, marking the fifth consecutive month and the 10th time in the last 12 months the portfolio has grown, according to Freddie Mac’s June 2015 Monthly Volume Summary released on Wednesday. The serious delinquency rate on Freddie Mac-backed single-family residential mortgage loans fell by another 5 basis points from May to June, down to 1.53 percent–virtually the same as the 1.52 percent serious delinquency rate reported for Freddie Mac-guaranteed loans in November 2008 at the start of the financial crisis. Freddie Mac’s serious...
Pence, Hensarling: Dismantling Dodd-Frank remains a high priority
It’s been a busy first week in office for President Donald Trump, with executive orders on immigration, energy, trade, health care, and more being handed down daily. But executive orders are just the preamble to the big initiatives that Trump and the Republican majority in Congress are expected to push for shortly. Chief among those is the “dismantling” of the Dodd-Frank Wall Street Reform Act. During the presidential transition, Trump’s transition team stated that dismantling Dodd-Frank would be one of the president’s main priorities. And on Thursday, the American public got a reminder that the president and his party plan...
Selling distressed loans to investors significantly cuts foreclosure rates
Despite skepticism by many advocates, the Federal Housing Administration (FHA) and Fannie Mae and Freddie Mac (the government-sponsored enterprises, or GSEs) increasing rely on auctioning off severely delinquent mortgages to private investors to dispose of these distressed assets. In January, we showed that sales of distressed or nonperforming loans (NPLs) have been effective from the borrowers’ and taxpayers’ perspectives, but these conclusions were based on limited data. Over the past few weeks, the FHA and the GSEs’ regulator, the Federal Housing Finance Agency (FHFA), have released new, more complete data, which allow us to confirm that this program significantly cuts...
By Brena Swanson Taking a break from the housing sessions that ran through the morning, attendees at the Housing America’s Families Forum in Dallas at the George W. Bush Presidential Library on Friday gathered for a light lunch and to listen to one of the most eagerly anticipated speakers for the day, House Financial Services Committee Chairman Rep. Jeb Hensarling. As a republican representative for the Dallas area, Hensarling didn’t have to travel too far for the event and even quipped about needing to get home to do some stuff for his wife. But before heading back home, Hensarling shared...
Donald Trump unveils plan to dismantle Dodd-Frank Act
Now that the dust is starting to settle from the election, a clearer picture is beginning to emerge of what types of actions President-elect Donald Trump will pursue once the “-elect” is removed from his title. Chief among those planned actions appears to a plan to “dismantle” the Dodd-Frank Wall Street Reform Act. Trump’s plans for the first days of his term as president are being revealed on a website launched by his transition team. Under a section titled “Make America Great Again,” the website lists the three main tenets of Trump’s plan: Making America Secure Again; Getting America Back...
Taking a break from the housing sessions that ran through the morning, attendees at the Housing America’s Families Forum in Dallas at the George W. Bush Presidential Library on Friday gathered for a light lunch and to listen to one of the most eagerly anticipated speakers for the day, House Financial Services Committee Chairman Rep. Jeb Hensarling. As a republican representative for the Dallas area, Hensarling didn’t have to travel too far for the event and even quipped about needing to get home to do some stuff for his wife. But before heading back home, Hensarling shared his hope for...
Trump Treasury pick: Fannie Mae and Freddie Mac will be privatized
After President-elect Donald Trump announced that he selected Steve Mnuchin, a former executive at Goldman Sachs and former chairman of OneWest Bank, to lead the Department of the Treasury, Mnuchin began making the media rounds with Wilbur Ross, Trump’s choice to lead the Department of Commerce. One of Mnuchin and Ross’ first stops was with Fox Business, and during an interview with Maria Bartiromo, Mnuchin dropped a bombshell about the future of Fannie Mae and Freddie Mac. Rather than be wound down, as some including another rumored choice to lead the Treasury, Rep. Jeb Hensarling, advocate for, Mnuchin said the...
