Rise of the Rentals

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ORIGINATION LocaL Edition Th e M Rep o RT | 37 O r i g i nat i O n s e r v i c i n g a na ly t i c s s e c O n da r y m a r k e t ORIGINATION Unsurprisingly, non-banks Ocwen and Nationstar took the fourth and fifth spots, servic- ing $465 billion and $393 billion in loans, respectively. The two servicers have been aggressive in their portfolio growth efforts, quickly climbing the ranks of top servicers and attracting attention from regulators who wonder if the companies are up to the task. Private mortgage insurers launch new trade group MI coMpanIes band together to proMote best practIces and IMprove housIng fInances access for borrowers. WASHINGTON, D.C. // Six of the nation's leading active mortgage insurance (MI) companies an- nounced the formation of a new trade association: U.S. Mortgage Insurers (USMI). Founded by member compa- nies Arch MI, Essent, Genworth MI, MGIC, National MI, and Radian Guaranty, the new organization replaces Mortgage Insurance Companies of America (MICA), which wound up opera- tions earlier this year. Rohit Gupta, president and CEO of Genworth MI and co-chair of USMI, says the goal of the organization is to put a renewed focus on the benefits of MI in helping to ensure access to housing finance for borrowers. "As policymakers focus on the need to create a strong, stable housing finance system, USMI companies are strongly positioned to serve the housing finance market and are actively engaged in efforts to ensure that MI remains a reliable foundation for the future housing finance system," Gupta said. With new capital entering the industry, new master poli- cies reshaping claims handling, and regulatory reforms under way, USMI hopes to help shape the path forward, adds Adolfo Marzol, EVP at Essent and also co-chair for the group. "The expanded use of MI can be done gradually, providing a sensible transition forward that does not place at risk the proper functioning of a large and complex U.S. housing finance system. MI is ready to do more," Marzol said. Joining Gupta and Marzol on USMI's board of directors are Teresa Bryce Bazemore, presi- dent of Radian Guaranty; David Gansberg, president and CEO of Arch MI; Patrick Mathis, EVP and chief risk officer of National MI; and Patrick Sinks, president and COO of MGIC. Fifth third exits Wholesale space another bank decIdes to abandon the sector. OHIO // In a letter issued to brokers, Fifth Third Mortgage president Bob Lewis revealed the bank's intention to depart the wholesale business to focus third-party origination on cor- respondent lending. The com- pany terminated its residential wholesale loan broker agreements effective March 14. "While this was an extremely difficult decision to make, we intend to build on our leadership position in the correspondent market and remain committed to purchasing loans from smaller financial institutions and indepen- dent mortgage companies," Lewis said in the letter. With the wholesale environ- ment growing more competitive and regulatory changes shaping business, these kinds of exits make sense for companies that don't focus specifically on that seg- ment, says Mat Ishbia, president of United Wholesale Mortgage. "Some of these banks that have multiple lines of business, they have to analyze all their business- es all the time . . . . You figure out what your core business is," Ishbia said. "It's really hard to be great at something when it's a small part of your business." While he expects to see more lenders drop out of wholesale, Ishbia adds that a company with- drawing here or there shouldn't create a major impact in the industry, noting that he was more concerned about seeing compa- nies leave that line shortly before January's regulatory deadlines hit. "There are still 100-plus whole- sale lenders. It's not a substantial amount of business at all. From a brokers' perspective . . . there's no impact," he said. "With the wholesale environment growing more competitive and regulatory changes shaping business, these kinds of exits make sense for companies that don't focus specifically on that segment" —Mat Ishbia, United Wholesale Mortgage

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