Servicing

On the same day that Federal Reserve Chairman Ben Bernanke cautioned lawmakers about their fiscal behavior and hinted at more stimulus measures, one of the Fed├â┬ó├óÔÇÜ┬¼├óÔÇ×┬ós governors, Sarah Bloom Raskin, outlined potential peril in the mortgage servicing industry. The Fed chief noted ailing health in the economy while the other official sketched a need for change in servicing standards. News reports found the 30-year Treasury bond yields leaping forward on the promise of action by the Fed chief.

Real estate investment trusts are making headlines again, on the news that the Federal Reserve will continue to drive long-term interest rates even lower. High yielding REIT stocks have dropped accordingly, and the REIT market, which thrives on borrowing at lower rates and lending in the mortgage marketplace at higher rates via the purchase of mortgage-backed securities, has struggled. Many industry analysts note that the segment's avoidance of any default risk should offset the instability caused by interest rate fluctuation.

The multifamily division of Prudential Mortgage Capital Company has a new addition to its team of originators, with the hiring of Kip Kimble. Prudential Mortgage, which functions as the commercial mortgage lending division of Prudential Financial, Inc., will install Kimble in its newly opened Boston, Massachusetts office.

Expanding its mortgage services, PHH Mortgage Corporation has announced the addition of five private clients, and the new financial institutions will gain access to the company's mortgage offerings through its Private Label Solutions division. PHH Mortgage, a subsidiary of PHH Corporation, will now provide end-to-end mortgage processing management to the PLS participants.

An inconclusive search for a buyer will lead Bank of America to shutter the mortgage correspondent unit it had originally hoped to sell. The move means the mortgage giant will wipe its hands of the correspondent business by yearend, with a series of transitions in store for the 1,200 or so employees currently on the payroll. It also tracks a broader strategy deployed by the bank to trim billions in expenses, shore up liquidity, and fend off suits over mortgage-backed securities from federal agencies.

Mortgage software company Mortech, Inc., found cause to celebrate with the launch of an industry-first Lending Management Platform, available via a Web site devoted entirely to the brand-new MarksmanLMP. According to the company, the aim of the dual launch is to streamline and simplify online lending processes.

Over eight in 10 U.S. real estate investors are making moves to shore up their portfolios even as talk of a double-dip recession persists, according to a recent survey. More shocking: most of the survey respondents parted ways with Americans at large by agreeing that the economy is headed in a northerly direction. Conducting the survey in early August, Colliers International, a real estate services company, deployed the 2011 Colliers International Global Investor Sentiment Survey as a way to measure investor appetite for risk and optimism.

Making good on promises by policymakers from both parties, Congress allowed the $729,750 threshold for conforming loans with federal guarantees to expire Saturday, pinching high-end borrowers in a marginal number of counties and potentially leaving a swath of new market share for private bankers. Homebuyers looking for more than $625,000 in financing for their mortgage loans will accordingly fall short of eligibility requirements needed for federal insurance.

Despite mortgage rates hitting rock bottom Thursday, few analysts expect an uptick in demand anytime soon, with consumers concerned about their job security, underwriting standards still tight, and a foreclosure glut competing with home construction. Given tough times, MReport canvassed the industry ├â┬ó├óÔÇÜ┬¼├óÔé¼┼ô online, in the field, and on the speaking circuit ├â┬ó├óÔÇÜ┬¼├óÔé¼┼ô and uncovered 12 strategies relevant to originators in a tough market. Six of these hot tips made it into MReport's online exclusive.

The U.S. Department of Agriculture Rural Development recently announced a new pilot program targeting reduced regulatory burdens for those developing affordable housing. In conjunction co-creators of the project, the U.S. Department of Housing and Urban Development, the initiative focuses on helping developers and individual owners, in addition to easing the way for state and federal agencies to serve low-income renters. The USDA-RD and HUD have approved a first draft of a Memorandum of Understanding.