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MIAC Perspectives

MIAC Perspectives – Spring/Summer Edition 2014

In this issue:

Whole Loan Market Overview- The Regulation Dichotomy                                                            

Anjali Kumar, VP, Whole Loan Sales/Trader

January 10th, 2014, brought about significant change to the mortgage industry nationwide with the Consumer Financial Protection Bureau’s implementation of QM & QRM Regulation.  The new QM and QRM rules and guidelines, imposed upon the entire lending industry, were designed to prevent lenders from providing high risk mortgage loans to borrowers.   While there is some gray area in the interpretation of some of these guidelines, the driving factor is clear:  to protect the consumer from future default and foreclosure and subsequently avoiding another national housing meltdown.  Read more...

Commercial Servicing Market Update      

Dan Thomas, Managing Director, Client Solutions Group

All is well in Commercial Servicing Land. Underlying property values are increasing in most sectors, delinquencies are dropping and commercial servicers continue to add a significant amount of high quality, low note rate, high servicing fee commercial mortgage servicing rights (CMSRs) to their balance sheets. These new, low interest rate CMSRs are projected to be around for many years and will help stabilize the financials of the large and mid-sized commercial mortgage servicers during the eventual slow down in origination income.  Delinquency rate levels in the CMBS, GSE and Bank & Thrift sectors all have seen steady improvement with rates at or close to their five year lows.   Read more...

The Need to Conduct a Data Quality Review on Bulk MSR Purchases                                                                        

Kent Loehrke, Managing Director MDS, Mortgage Delivery Specialists – Part of the MIAC Group

It has never been more important for buyers of Mortgage Servicing Rights (MSRs) to conduct a formal due diligence of each portfolio they purchase. Over the last several months more and more Mortgage Servicing Rights have exchanged hands.  MSR transaction volume has been steadily increasing due to strong demand and increasing prices.  Mortgage companies, some who only recently decided to retain MSRs, have been forced to sell a portion of their MSR portfolios to generate revenue.  As these non-traditional sellers enter the arena and new buyers enter the marketplace, a due diligence program is necessary.  This article will provide an overview of why we feel due diligence is important, point out some of the areas that merit special attention and show you how MIAC can help you with your due diligence needs through our newly acquired division, Mortgage Delivery Specialists (MDS).  Read more...

Marketplace Lending: An Online Alternative to Traditional Banking                                                  

Brian Kearon Analyst, Borrower Analytics, Capital Markets Group , Jeffrey Fromer Sales Associate, Business Development & Eli Clark-Davis, Analyst,  Business Development 

Marketplace lending, formerly peer-to-peer (P2P) lending, has just turned a corner. The recent name change accurately describes the evolution of the industry over the past year. Renaud Laplanche, CEO of Lending Club, the world’s largest marketplace lending platform, formally suggested calling the industry “marketplace lending” at the LendIt 2014 conference in May. Ron Suber, President of Prosper Marketplace, the second largest platform, was recently quoted in the NY Times saying a suitable name for the industry is “online consumer finance.” Notice neither has the term “peer” in it.   Read more..

Download the full publication: MIAC_Perspectives_Spring_Summer_Edition_2014

Joe Macklin

About Joe Macklin

As Director of Risk and Analytics at MIAC Acadametrics Ltd I am required to call upon all my 14+ years experience as a risk professional in the financial services industry. My deep and varied knowledge gained through my exposure to the end-to-end risk management framework, and the completion of relevant qualifications, enables me to add value to our diverse clientele and the varied markets they operate within.