Among three third-party mortgage originators that are closing is an Ocwen Financial Corp. unit. Multiple credit unions failed over this past summer.
Last year, $2 billion of West Palm Beach, Florida-based Ocwen’s $5 billion in total mortgage originations was generated through the wholesale channel.
But with a disclosure earlier this week that it has decided to exit the wholesale forward lending business, Ocwen will potentially lose 40 percent of its annual production.
The loss of mortgage broker business is on to of the recent exit from the correspondent channel — which generated
more than a third of 2016 originations.
In Thursday’s Securities and Exchange Commission filing, Ocwen noted that it has agreed to sell some wholesale lending assets to an undisclosed buyer. Some impacted employees are likely to be offered jobs at the new organization.
“Ocwen remains in retail forward lending and all existing channels of reverse mortgage lending,” the SEC filings stated.
Ocwen additionally disclosed settlements with two more states in the filing, bringing the number of states that have settled to 15. A total of 30 states have taken action against Ocwen.
InterFirst Mortgage Founder and Chief Executive Officer Dmitry Godin has decided to close the wholesale lender, Crains Chicago Business recently reported. The company reportedly originated $14.1 billion in 2012 and employed as many as 500 people.
Nationwide Bank ignored a request to confirm that it is exiting its correspondent mortgage business for “strategic reasons” as reported by
Rob Chrisman on Oct. 6. Loans that are already locked must be closed by Dec. 15.
Mortgage Daily has tracked the closing or failure of seven non-bank mortgage businesses so far during 2017.
Back in June, a message on the website of Sindeo
Inc. from Chief Executive Officer Nick Stamos said a decision was made to wind down the company. But a subsequent story from Inman indicated that Sindeo-investor Renren acquired Sindeo and all of its assets.
The National Credit Union Administration placed three credit unions into conservatorship this past summer due to unsafe and unsound practices. Among them was
Citizens Community Credit Union in Devils Lake, North Dakota. The entity has 11,399 members and $201 million in assets.
Also conserved by the NCUA was LOMTO Federal Credit Union in
Woodside, New York. The financial institution had fewer than 3,000 members, though assets exceeded $236 million.
The third victim was
Riverdale Credit Union, which was placed into conservatorship by the Alabama Credit Union Administration and handed over to the NCUA as conservator. Membership at Riverdale exceeds 12,000, and assets are $76 million.
So far this year, Mortgage Daily has covered the failure of seven credit unions.
On Oct. 2, the NCUA liquidated
Shreveport Federal Credit Union. The Shreveport, Louisiana, credit union was originally placed in conservatorship in April.
In all, 20 mortgage-related entities that have closed or failed have been reported by Mortgage Daily so far during 2017.
