Tag Archives: Mortgage Servicers

Borrower claims appear to be fleeing the housing market two years after the Consumer Financial Protection Bureau introduced the Ability to Repay rule for mortgage servicers.

Five Star Institute President and CEO Ed Delgado said that companies which are slow to adapt to the changing real estate environment may be in trouble.

Nationstar Mortgage Holdings reported a net loss of $48 million, or $0.53 per share, for the first quarter of 2015 compared with a net income of $19 million ($0.21 per share) for the previous quarter, according to an announcement from the Lewisville, Texas-based residential mortgage servicer on Tuesday morning.

The company's Q1 2015 preliminary revenue of $510.4 million represents a 7 percent year-over-year decline, and preliminary income from operations dropped from $202.1 million in Q1 2014 down to $132.1 million in Q1 2015. Meanwhile, preliminary cash flow from operating activities for Q1 totaled $323 million, a year-over-year increase of 65 percent.

Philadelphia-based LL Funds, which manages more than $1.5 billion market value non-Agency residential mortgage-backed securities, said in the white paper released Friday that the institutional investors' claims of non-performance on the part of Ocwen, made through law firm Gibbs and Bruns, are flawed.

Despite the recent turmoil, Ocwen’s president and CEO, Ron Faris, said he expects his company to have a profitable 2015. "I am encouraged by the progress Ocwen has made so far,” Faris said. “We currently expect to … meet all of our ongoing financial and servicing obligations.”