The MReport Webcast: Friday 7/31/2015

Wells Fargo Bank and Prospect Mortgage announced Thursday their intentions to withdraw from marketing activities that depend on marketing services agreements due to regulatory uncertainty and Real Estate Settlement Procedures Act interpretations. Wells Fargo's decision will take effect August 1 with a wind down period over the following 90 days. Prospect expects to exit the MSA space by the end of the third quarter.

According to the announcement from Wells Fargo, the company will withdraw from mortgage marketing services and desk rental agreements with real estate firms, builders, and certain other referral sources. Wells Fargo based their decision on high levels of uncertainty in regulatory oversight in MSA arrangements. They also believe that this decision will support their efforts to simplify the mortgage shopping experience among their customers. Prospect notes that their decision was based on uncertainty among recent interpretations of RESPA requirements to the rules and requirements applicable to MSAs.

Nationstar Mortgage Holdings rebounded from a $48 million net loss in the first quarter this year to post a net income of $75 million or 0.69 cents per share for the second quarter in the company's Q2 2015 earnings statement released Thursday. The Lewisville, Texas-based residential mortgage servicer also posted adjusted earnings of $35 million or 0.32 cents per share for Q2.