MBA Servicing Solutions Conference 2022 Highlights

At the onset of the COVID-19 pandemic, servicers faced numerous challenges, not the least of which was implementing frequent regulatory and investor guidance changes while transitioning staff to a remote work environment. The 2022 MBA Servicing Conference in Orlando (February 23-25) focused on COVID-19 loss mitigation programs, foreclosure prevention measures, and evolving regulations. Several conference […]

RMBS Trustee Seeks Guidance on Forborne/Deferred Principal in Optional Terminations

In an earlier blog we mentioned that Deutsche Bank in its role as RMBS Trustee had put a pause on some optional terminations. (See RMBS Optional Terminations: A Closer Look into Forbearance Underpayments.)  Now we see Deutsche Bank’s next move. On November 23, Deutsche Bank filed a petition with Orange County courts in California requesting […]

RMBS Optional Terminations: A Closer Look into Forbearance Underpayments

In our previous article, RMBS Trust Termination: Optional Clean Up Call Overview, we reviewed the steps to collapsing an RMBS trust, starting with the trust’s eligibility for optional termination. Based on our review, we identified more than 1,000 trusts that are eligible to be called, and examined these by vintage, product type, and 60+ day […]

U.S. RMBS Market Prepares for the Cessation of LIBOR

The move away from the London Interbank Offered Rate (LIBOR) has been aptly described as “landmark transition” that has the financial industry mobilizing ahead of a looming deadline.[1] The one-week and two-month US dollar LIBOR will cease permanently on December 31, 2021 and the publication of the overnight and 12-month US Dollar LIBOR setting will […]

RMBS Trust Termination: Cleanup Call & Potential Conflicts

Coauthored by Maclean Amlalo The steps to collapsing an RMBS trust start with the trust’s eligibility. A trust qualifies for optional termination (“optional cleanup call” or “cleanup call”) when the balance of all remaining mortgage loans outstanding falls below a pre-specified threshold (generally between 5% to 35%) of the aggregate original mortgage loans’ balance. Percentages […]

Are You Ready to Implement CFPB’s Final Rule?

Are you ready? There is no question that the COVID-19 pandemic has created uncertainty for all of us. Throughout the pandemic, servicers and homeowners have faced unprecedented and related challenges: can homeowners make their payments?  Can servicers manage increased loss mitigation and forbearance activities while staff members are remote? Will new rules be provided to […]

CARES Act Forbearance Relief Expiration – What’s next?

CARES Act Forbearance Relief Expiration - What's next?

As CARES Act mortgage forbearance periods near end, borrowers and mortgage services providers alike ask: What’s next? According to data from the Mortgage Bankers Association and Black Knight, the number of COVID-19 forbearance plans has declined at an increasing rate in recent weeks. Per Black Knights calculations,

U.S. RMBS Market Readies Itself for LIBOR Transition

U.S. RMBS Market Readies Itself for LIBOR Transition

The structured finance and residential mortgage backed securities market are currently preparing themselves for an event that is being described as the equivalent of Y2K for banking: December 31, 2021, when the London Interbank Offered Rate (“LIBOR”) will no longer be an available index. When asked about the potential disruption of the market on a […]

Congress, FHFA and the GSEs’ Efforts to Grapple with Covid-Related Housing Market Issues Highlighted at House Financial Services Committee Hearing

Congress, FHFA and the GSEs’ Efforts to Grapple with Covid-Related Housing Market Issues Highlighted at House Financial Services Committee Hearing

On Wednesday, September 16th, Federal Housing Finance Agency (FHFA) Director Mark Calabria testified before the House Financial Services Committee (HFSC) regarding his agency’s response to the COVID-19 pandemic. Of particular interest to committee members – as well as the mortgage industry at-large– was the recent decision to impose a controversial “adverse market” fee of on refinancings. The fee, 0.5% on refinanced mortgages, was announced on August 12th and had been initially scheduled to take effect on August 12th – only three weeks later. However, the rollout has since been delayed to December 1st after the move was met with significant backlash from the mortgage industry