twitter linkedin
facebook google+

Mortgage News

News by Subject
Complete list of specialty news sections.

Purchase Subscription
Subscribe to and get immediate access to all news, statistics and archives.

Mortgage Advertising
Reach mortgage executives, loan originators and other people tied to mortgage industry.

Consumer Mortgage News
Free mortgage news for prospective borrowers.

Mortgage Newsletter
Free e-mail newsletter with the latest headlines from

Mortgage News Reprints
Put entire stories in your online or printed newsletter or publication.

Mortgage Feedget RSS code
Condensed stories free on your Web site or for your RSS reader.

News Archives
Archive of stories by month going back to 1999.

Press Releases
Reports and announcements from

Mortgage Statistics
Data and statistics for real estate finance.

Mortgage Directories
Directories of lenders, branch operators and mortgage service providers.

Mortgage Graphs
Directories of lenders, branch operators and mortgage service providers.

home subscribe advertise reprints e-mail help RSS about us LOG IN

Mortgage News


Mortgage News

HOT Topics









site map
Servicing News | Servicer Ranking | Delinquency Statistics
Stories about mortgage servicers, delinquency and f o r e c l o s u r e s. Coverage of servicing lawsuits and loan servicing technology.

Report Cautions About Rapidly Growing Servicers

Ocwen, Nationstar and Walter Investment focus of report

Oct. 29, 2013

By Mortgage Daily staff

Three fast-growing mortgage servicers are the focus of a ratings agency report that raises concerns about the operational risk that accompanies such rapid growth.

Ocwen Financial Corp. has grown its mortgage servicing portfolio from $102 billion as of Dec. 31, 2011, to $436 billion as of June 30 of this year.

At Nationstar Mortgage Holdings Inc., the servicing portfolio has surged from $107 billion to $318 billion during the same period.

Walter Investment Management Corp., which serviced just $77 billion as of the end of last year, reported that it serviced $223 billion as of mid-year 2013.

While profitability at the trio will increase as the housing market continues to heal, the rapid growth creates credit-negative operating risks, according to a report from Moody's Investors Service.

Moody's Senior Vice President Warren Kornfeld said in the report explained that significant operational risks resulting from high growth and rapid transformation will constrain their ratings.

"Over the last year, the companies have expanded their prime residential mortgage origination capacity, a much-needed source of organic growth and a credit positive," the report stated. "It is uncertain how well the companies will be able to compete with banks in prime mortgage banking over the long term. Given the companies' wealth of non-prime servicing experience, along with the cyclical, low-margin nature of prime mortgage originations, the companies could look to become the next generation of non-prime loan originations -- adding risk to their credit profile."

But the ratings agency noted growth at Ocwen, Nationstar and Walter is expected to slow significantly as they transition from acquisition-based growth to organic growth from the newly expanded full-service mortgage banking operations.

The slowdown is expected to free up cash flow as they begin to see the benefits of their investments.

Moody's said that sustained success will depend on how they choose to deploy excess cash flow.

"The improving housing market and economy will increase the profitability of the company's servicing businesses, a credit positive," the report said. "Since the delinquency rates of special servicers' servicing portfolios are far higher than those of prime servicers, special servicers have the most to gain from the declining delinquency and default rates that accompany a rising housing market."

Ocwen profile | Nationstar profile | Walter Investment profile

next story

back to current headlines

Mortgage Backed Securities | MBS News | MBS Statistics
News about commercial and residential mortgage-backed securities. Stories about ratings actions and changes to servicer ratings. Studies and reports about the performance of securitizations and problem vintages and classes. Subprime, Alt-A, home equity and j u m b o analysis.

Nonprime and Subprime News | Subprime Statistics
Stories about non-QM products. Coverage of subprime, Alt-A and
hard money lending. Home-equity loans and home-equity lines of credit.

Origination News | Lender Ranking | Fundings by Lender | Statistics
Quarterly residential mortgage production by lender. Subprime, Alt-A, home equity and conforming originations. Volume by quarter since 2003.

Logout forgot

SUBSCRIBERS: Edit Subscription | Subscription Help | or call 214.521.1300

Subscribe Contact Us Site Map

Copyright © 2017 Mortgage Daily, D a l l a s
Subsribers Only:

AMC directory

ARM indexes

mortgage company directory

mortgage regulations

net branch directory

p r i c i n g engine directory

wholesale lender directory

More Mortgage News Resources (full site map):

advertising news

appraisal news

bank news

biggest lenders

commercial mortgage news

corporate mortgage news

credit news

FHA news

financial regulation news

foreclosure news

GSE news

jumbo mortgage news

interest rates

loan modification news

loan originator survey

LOS Newsletter


mortgage associations

mortgage-backed securities

mortgage books

mortgage brokers

mortgage compliance

mortgage conferences

mortgage directories

mortgage education

mortgage employment

mortgage employment index

mortgage executives

mortgage fraud

mortgage fraud blog

mortgage fraud local news

Mortgage Fraud Index

Mortgage Graveyard

mortgage insurance news

mortgage lawsuits

mortgage leads

mortgage lender ranking

mortgage licenses

mortgage litigation

Mortgage Litigation Index

Mortgage Market Index

mortgage mergers

mortgage news

mortgage politics

mortgage press releases

mortgage production

mortgage public relations

mortgage rates

mortgage servicing

mortgage statistics

mortgage technology

mortgage video

mortgage Webinars

net branch

net branch directory

nonprime news

origination news

originator tools

real estate news

refinance news

reverse mortgage news

secondary marketing

social media

servicing news

subprime news

wholesale lenders