Some mortgage brokers see the switch to a mini-correspondent as their only way to stay in business due to provisions in rules from the Consumer Financial Protection Bureau.
Ocwen founder Bill Erbey said agreements between the nonbank servicer and firms it has spun off have been fully disclosed and the relationships operate on an arm’s length basis.
The SEC’s Division of Corporation Finance this week suggested a change to proposed Reg AB2 disclosure requirements in an effort to protect the privacy of borrowers whose loans are included in MBS and ABS.
In the fourth quarter of 2013, Redwood issued one jumbo MBS totaling $325 million and completed whole loan sales of $648 million. Officials at the real estate investment trust said Redwood plans to issue a jumbo MBS in March or April.
Citigroup will not provide representations and warranties for fraud on the MBS and half of the mortgages were originated with stated- or no-documentation.
According to responses from real estate agents involved in 1,401 transactions in January, some 45 percent of purchase mortgages with private MI experienced a delayed closing. And 42 percent of FHA purchase mortgages experienced a delay in closing.
The SEC was poised to issue a final rule with loan-level disclosure requirements for non-agency MBS earlier this month. The SFIG said it expects the SEC will issue a final rule on the so-called Regulation AB2 “in the near future.”
Two nonbanks among the top five servicers now control almost 9 percent of the residential receivables market. Should regulators be worried? Should the MBA?