Changes in the Works for Mortgage Servicing Business That Faces Continuing Decline in Debt Outstanding
November 8, 2012
Three nonbank mortgage servicers moved to strengthen their positions in the market, but several of the top banks in the industry also showed no sign of backing off, according to the latest ranking by Inside Mortgage Finance. While a number of analysts have predicted that banks would flee from the servicing business because of rising operational costs, increased compliance scrutiny and proposed increases in capital requirements, Wells Fargo continued to grow its business. The company reported a total of $1.879 trillion in servicing as of the end of September, up 0.9 percent from the previous quarter. After absorbing Wachovias mortgage operations in the third quarter of 2008, Wells relied...[Includes one data chart]