An auction of Ditech Financial is scheduled for the end of May. At stake is not only the company’s future — and the jobs of roughly 2,700 full-time employees — but $187.2 billion in mortgage servicing rights. If bidders fail to show up, Ch. 7 will likely be the next step.
Ditech is about to lose a huge subservicing contract that it has with New Residential Investment Corp. A handful of subservicing vendors are considered finalists to replace Ditech, including market leader Cenlar and the number-three ranked LoanCare.
It appears that RoundPoint Mortgage is once again on the auction block. This time around, it looks as though the $90.5 billion residential servicer will be sold to top-ranked Freedom Mortgage, Stan Middleman's shop. But it's not a done deal, sources say, at least not yet.
Compliance relief is one of the major benefits that leads owners of mortgage servicing rights to use subservicers, including some of the largest MSR investors in the market.
Liquidity problems may be a major driver of increased merger and acquisition activity in 2019. Although bulk MSR buyers may be taking a pause to parse interest-rate trends, volume is expected to be strong this year.
Are nonbanks really facing a coming liquidity crisis or is it just fear-mongering? It may depend on who you work for, but a recent op-ed piece by Caliber Home Loans CEO Sanjiv Das has kept the debate alive.
Owners of private mortgage firms often take cash out of their companies as a way to preserve wealth, but usually no one knows about it. A recent SEC filing by Mr. Cooper provides certain details on such a maneuver by a recent acquisition, Pacific Union Mortgage.
The Urban Institute says mortgage servicing compensation has been largely overlooked in the debate over housing-finance reform even though it plays a critical role.
Nonbank servicers are increasingly moving toward a capital-light strategy, suggesting steady demand for MSR and servicing-advance financing. The investor base for such deals is strong and growing.
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