Early in 2014, Ocwen Loan Servicing, the nations largest nonbank mortgage servicer, completed a new type of quasi-securitization to help Ocwen fund its servicing business, which has grown as mortgage servicing has shifted from depository institutions to nonbanks. This shift has occurred in response

Following the crisis, nonbank specialty servicers rapidly expanded their portfolios of distressed loans. This has contributed to a significant market change: in 2011, the 10 largest mortgage servicers were all banks; by 2013, only five of the top 10 were banks, and the other five were nonbank

The heightened and uncertain cost of servicing delinquent mortgage loans is a significant, although underappreciated, constraint on access to credit. Lenders can price loans to reflect the anticipated servicing costs, but it is very difficult to price for the uncertain costs of default servicing

In July 2015, the Federal Housing Administration (FHA) proposed a rule with far-reaching implications for servicing FHA loans [RIN 2502-AJ23], but it has received surprisingly little attention. The proposed rule would strictly limit the maximum period for filing insurance claims with the FHA. As

This article examines the heightened and uncertain cost of servicing delinquent mortgage loans as a major contributor to the current excessively tight credit box. This is an update to the December 16, 2014 brief “Servicing Is an Underappreciated Constraint on Credit Access.” While the Federal

The role of nonbanks in servicing single-family mortgages has increased tremendously over the past five years, mostly at the expense of large depository institutions. In response, the government-sponsored enterprises (Fannie Mae and Freddie Mac) and Ginnie Mae have issued new capital, liquidity, and

In this brief, the first in a series prepared by HFPC researchers with support from the mortgage servicing collaborative, we review how the mortgage servicing industry has changed over time and explain the significance of servicing to a wide variety of stakeholders. This brief sets the stage for

In this report, the second in a series prepared by HFPC researchers with support from the mortgage servicing collaborative, we examine government loan modification products available for loans insured by the Federal Housing Administration (FHA), the US Department of Veterans Affairs (VA), and the US

In this brief, the third in a series prepared by HFPC researchers with support from the mortgage servicing collaborative, the authors address how the Federal Housing Administration (FHA) foreclosure and conveyance processes can be changed to bring down costs and create efficiencies. With proprietary

In this brief, the fourth in a series prepared by HFPC researchers with support from the mortgage servicing collaborative, the authors discuss the benefits that would accrue to consumers and servicers if uniform data standards were adopted for exchanging mortgage servicing data. Standardization will

In this brief, the fifth in a series prepared by HFPC researchers with support from the mortgage servicing collaborative, the authors examine three options for the mortgage servicing compensation structure: (1) retain the status quo, (2) move to a fee-for-service model, and (3) move to a central