The big five mortgage servicers are selling off their inventory of mortgage servicing clients to non-bank entities.
Why are they doing this to the middle-class? It is clear, the non-bank servicers have much less regulation. They believe that these non-bank entities will not be a dogged by regulators in moving foreclosures through the illegal mills as these mortgage servicers are not participants in the National mortgage settlement nor HAMP, HAFA or the other federally mandated programs.
This is bad news for homeowners trying to get a modification without strong advocate like Wealth Management, as the non-bank servicers can dual-track and don’t have to offer the federal programs.
It is a maneuver by the large banks/ servicers to shed the liability they have accumulated in the last 7 years from illegal foreclosure schemes using MERS. The fight just got tougher. This just became real to me because most of my Bank of America clients servicing was sold to Nationstar. I predict Nonbank servicers will be challenged after refinancing activity dies down.
Shares of Nationstar Mortgage Holdings Inc. NSM +3.05% and Walter Investment Management Corp. WAC +0.45% – two of the fastest-growing players in the so-called mortgage-servicing business–soared after announcing deals to acquire the rights to service more than $300 billion of home loans from Bank of America Corp.BAC -0.54%
If you are a homeowner having trouble making your mortgage payments due to unemployment, under employment, medical hardship or other financial issues, don’t hesitate to call our office 562-427-8877