Servicing

Ocwen Financial, the nation's top non-bank mortgage servicer, announced Thursday that the company has taken a $100 million charge for a potential settlement regarding claims that it sent backdated foreclosure notices to thousands of borrowers. In a conference call with analysts, Ocwen executive chairman William Erbey left open the possibility that legal costs could drive the $100 million amount higher.

New York's top banking supervisor once again set his sights on Ocwen Financial Corp. this week, saying the non-bank servicer sent thousands of foreclosure warnings to borrowers months after it was too late to save their homes.

In its announcement, the Conference of State Bank Supervisors (CSBS) said it established the task force as a response to the explosive growth of non-bank servicers like Ocwen Financial and Nationstar Mortgage, both of which have moved to snap up servicing rights from depository firms and climb the ranks of the nation's biggest outfits.

A new mortgage servicing rights (MSR) portfolio has hit the market, this one valued at more than $1 billion in unpaid principal balance. According to an announcement from MountainView Servicing Group, which is advising on the sale, the latest offering contains mortgages backed by Fannie Mae and Ginnie Mae, 97 percent of which are fixed-rate and all of which are first-lien loans.

As the Consumer Financial Protection Bureau (CFPB) puts a more focused eye on mortgage servicing transfers, one document processing firm says faulty servicer database records could impact hundreds of thousands of homeowners across the country.

CoreLogic has released its fourth out of a series of four white papers entitled Foundation for a Sound Housing Market addressing the high-level aspects of the challenges today's mortgage servicing sector is facing. Other key issues discussed in the white paper include mortgage servicing models available and the specific risks associated with each one.

JPMorgan Chase reports it has completed nearly a quarter of its consumer relief obligations required under a landmark mortgage-backed securities (MBS) settlement last year. According to a report issued Wednesday by the settlement's monitor, Joseph Smith Jr., the megabank expects to be credited for more than $862 million it provided through various borrower relief measures in the second quarter.

A recurring theme during many of the six labs at the Five Star Conference last week was compliance and how it has changed the mortgage industry in the last few years. Laurie Maggiano, program manager for servicing and secondary markets at the Consumer Financial Protection Bureau (CFPB), was on hand to discuss the world of mortgage servicing statutes for the "CFPB's National Servicing Standards—Update Session" section of the conference's Compliance Lab.

Experts gathered in Dallas earlier this week at the annual Five Star Conference and Expo to discuss the most pressing issues facing servicers—and "compliance" was the word of the day.

New York-based Mortgage Industry Advisory Corporation (MIAC) announced the offering of a new $50 million per month mortgage servicing flow portfolio. The portfolio, which is made up of more than two-thirds Ginnie Mae and nearly one-third Fannie Mae loans, is being offered by a "well capitalized mortgage company that originates nationally," said MIAC, which is acting as the seller's exclusive representative on the offering. The seller will provide full representations and warranties for the loans included.