A report by Fitch Ratings forecasts a sharp drop in originations and declining GOS margins that will put pressure on earnings for smaller nonbank lenders.
After settling OCC charges on how it manages subservicing risk, Cenlar faces the possibility some of its clients might bolt for the competition. But will they?
Nonbanks claimed more than half of the owned servicing reported by the top 50 firms in the market as their combined portfolio rose 10% in the second quarter. (Includes three data charts.)
If capital and liquidity requirements for nonbank servicers are too stringent, firms could leave the business and borrowers’ costs for mortgages could increase.
Subservicing behemoth Cenlar has caught the attention of the OCC, which slapped the loan processor with a consent order because of its risk management shortcomings. On the menu: corrective actions.
Although a handful of large banks took advantage of willing sellers to boost their agency MSR holdings, nonbanks continued to expand their footprint in the market. (Includes two data charts.)
Commercial banks cranked up the value of their servicing portfolios in the third quarter, but not dramatically. Soon, we’ll find out how the nonbanks viewed the same asset.
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