Important Articles

Important Articles

Ginnie Mae Concerned About Unnecessary Refinances

Federal officials plan to crack down on what they view as predatory lending schemes — reminiscent of the toxic practices seen during the housing boom — targeted at thousands of veterans nationwide who have VA home loans. The abuses involve serial refinancings that generate hefty fees for lenders and loan brokers but leave borrowers in worse financial shape than they were before the transaction. Lenders are dangling teaser interest rates, ...
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How Customer Recapture Affects the Value of Mortgage Servicing Rights

Prepayment speeds is a major concern for owners of MSRs and Excess MSRs as homeowners continue to be bombarded with solicitations to refinance their mortgage. Investors base the price they pay for MSRs and the rate of amortization of those rights on, among other things, projections of the cash flows from the related pool of mortgage loans. The expectation of prepayment speeds is a significant assumption underlying those cash flow projections ...
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Successful Borrower Retention Can Increase Value of Servicing By Up To 3X

PRESS RELEASE STRATMOR Insights Report: Borrower Retention Can Increase Value of Servicing By Up To 3X; Appraisal Fees and Turn Successful borrower retention efforts can increase the servicing value of a new mortgage by one-and-a-half to three times Increases in servicing value can be used to fund price concessions, which can improve overall competitiveness, further increasing the probability of retention and the ability to fund even greater price concessions On average, ...
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Releasing the Mortgage Loan Servicer’s Super Customer Retention Power!

Mortgage loan servicers customer retention super power is: Keeper of all knowledge about their customer's loans. Unfortunately, the mortgage loan servicer’s customer retention power rarely has the opportunity to be utilized on a fair playing field when it comes to mortgage customer retention. Permit me to explain. The mortgage loan servicer’s adversaries are lenders that spirit away valuable customers by taking the customers’ money before their servicer has an opportunity to ...
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Quantitative easing strategy doesn’t fully explain why the FV of US Banks MSRs $80 billion peak in September 2008 is only $36 billion in 2016

Mortgage servicing companies through their exposures to MSRs have seen their earnings materially affected by non-cash valuation losses on MSRs due to changes in interest rates and prepayment speeds. Continued write-downs of mortgage servicing rights (MSRs), in part due to the application of “fair value” accounting, has significantly diminished investor confidence in and has limited capital market access for a number of non-bank mortgage companies. [1] "One big issue some ...
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Primary Mortgage Servicers Need to See Customer Satisfaction as Cost-Reduction Strategy – J.D. Power

More Satisfied Customers Can Translate into Increased Profitability; Quicken Loans Ranks Highest in Mortgage Servicer Satisfaction for a Third Consecutive Year COSTA MESA, Calif.: 28 July 2016 — Mortgage servicers that invest strategically in the customer experience can not only recapture that investment, but also increase profits and raise customer satisfaction, according to the J.D. Power 2016 Primary Mortgage Servicer Satisfaction Study,℠ released today. The study contradicts those in the mortgage ...
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The CFPB 2015 Consumer Response Annual Report

According to the Consumer Financial Protection Bureau's CFPB 2015 Consumer Response Annual Report, there were 50,800 mortgage complaints handled by the CFPB in 2015 and 80% of them were servicing related. What's amazing is that 81% of all those mortgage complaints closed with just an explanation to the customer from the mortgage company. Think about that for a minute, four out of every five mortgage complaints to the CFPB in 2015 were resolved with just an ...
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Sample – Customer Retention Specialist Job Description for Proactive Mortgage Servicers

Seeking Customer Retention Specialists (CRS) to uncover the best mortgage solution for our existing customers who are seeking mortgage advice. CRSs provide information about customers’ existing mortgage and other real estate financing options. CRSs assist our customers to determine: 1) if it is best to refinance, 2) if it is better to keep their existing loan or 3) to take advantage of better alternatives to refinancing for their particular situation such as: a ...
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How servicers can retain valuable customers while protecting the security interest of the lender and investor

WHITE PAPER September 2015 Tim Allen, CMB and Bill Daniels. This paper clarifies the threat to mortgage servicers from asset and income runoff, online originators and preventable compliance complaints to the Consumer Financial Protection Bureau. This paper also introduces aboutMymortgage.com’s proactive tool for borrower communication to protect and defend assets, income and reputation. Read the full White Paper © 2015 AboutYourMortgage.com LLC dba aboutMYmortgage.com. All Rights Reserved ...
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