News

Fitch Ratings has opted to keep Ocwen Financial Corporation’s ratings as-is—both on its servicing and its bonds—despite the servicer’s recent MSR sale. Announced last month, Ocwen will sell its mortgage servicing rights, along with $117 billion in unpaid principal balance, and become a sub-servicer of New Residential Investment Corporation. Regardless of the sale, Fitch has announced Ocwen will keep its “Negative” residential primary servicer rating.

The Federal Housing Finance Agency on Thursday released its third Enterprise Non-Performing Loan Sales Report, which lists all the sales of all non-performing loans from Freddie Mac and Fannie Mae to the private sector through December 31, 2016. The report tracks total loan sales, total number delinquent assents unloaded, and time of delinquency. It also strives to track borrower outcomes and measure how many properties were foreclosed on, how many avoided foreclosure, and the difference between homes that were sold to third parties and benchmark NPLs.

HUD Secretary Ben Carson is preparing for a big June as he kicks off the newly proclaimed National Homeownership Month with a forum at his own agency today. He’ll also go before Congress next week to discuss potential HUD budget cuts via Trump’s recent 2018 budget blueprint, which slashes the agency’ funding by more than $6 billion. The cuts will also significantly reduce HUD’s rental assistance program, which Carson recently discussed in a Sirius XM radio interview.

Median earners in the top U.S. markets are getting almost fully priced out. A new study by Redfin shows an increasing affordability gap that is even further exaggerated by ethnicity. Middle-class Hispanic and African-American buyers in several major markets, especially in the West, are close to becoming extinct.

Fannie Mae's April monthly summary was recently released showing slight growth for the month. Though temporarily, their Gross Mortgage portfolio increased at a compound annualized rate of 52.5 percent. Conversely, the Conventional Single-Family Serious Delinquency Rate decreased five basis points.

Thanks to one of REO’s biggest professional groups, the mortgage industry has taken a significant step in diversity and inclusion. The Federation of REO Certified Experts announced the launch of its Diversity Council on Wednesday, a group that aims to “advance conversations on diversity and inclusion.” The group is made up of six committees, including ones for Latino, African American, women, LGBT, veteran, and Asian REO professionals.

Perfect Practice, an Orlando, Florida-based provider of legal management services technology, announced this week a partnership with Affinity Consulting Group, which offers technology and management solutions for law firms and legal departments. “The partnership will create a streamlined array of services,” according to Perfect Practice.

Elm Street Technology (EST), who offers a portfolio of real estate technology and marketing services companies for agents, teams, and brokerages, recently announced the acquisition of Consolidated Knowledge, a technology platform provider to the residential real estate and multi-family industries. EST aims to offer a single technology solution for lead generation. The acquisition is the next step in EST’s ongoing efforts to consolidate the real estate industry’s leading technology and marketing service providers.

Due to a shortage of licensed and certified appraisers, major national financial regulatory agencies have issued an advisory to help reduce delays in the consideration of loan applications in rural communities. Since loans cannot be executed without appraisals, the advisory outlines two options to remedy the problem. The FDIC has suggested that states issue temporary practice permits and engage in reciprocity, or that effected institutions submit a request temporary waivers to set aside licensing requirements.

Suits claiming Bank of America and Wells Fargo engaged in discriminatory lending practices in the city of Los Angeles were dismissed this week by an appellate panel in New York. Filed by the city of LA, the suits alleged the two banks targeted minority buyers with more expensive and riskier loans than white borrowers. The appellate panel ultimately sided with the original district court rulings, which stated the city failed to establish a strong enough link between the bank’s policies and any racial disparity in local homeownership.