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More on Jefferies' coverage in the mortgage sector (previous); PennyMac Mortgage (PMT -0.5%) is...

More on Jefferies' coverage in the mortgage sector (previous); PennyMac Mortgage (PMT -0.5%) is initiated a Buy, analyst Daniel Furtado noting the company shouldn't be lumped in with mREITs (REM, MORT) as it's less a levered owner of MBS and more an issuer of the paper. "This key differentiating factor will lead to higher valuation and better investment returns over the long term."
Comments (2)
  • EGalindo
    , contributor
    Comments (90) | Send Message
    Will PennyMac end up being included in the whistle-blowers rack-up?



    "First, some background. Over the past year, non-bank servicers like Nationstar and Ocwen have been buying up servicing rights to millions of mortgages, gradually positioning themselves to become the biggest companies in the space. These non-bank servicers, which process monthly payments and deal with foreclosures but do not originate loans, have an asset not available to their big bank colleagues: They haven’t yet been officially caught scamming customers. Therefore, they are not a party to the various servicer settlements brought by state and federal regulators, and they need not submit to those settlement guidelines. This includes rules like establishing a single point of contact for borrowers, stopping foreclosure operations when a modification is in process (ending what is known as “dual track”) and facilitating proper payment processing.


    All of this has come to a head in a class-action lawsuit filed by Leonard Law Office in Massachusetts against Green Tree Servicing, a non-bank servicer based in St. Paul, Minn. As detailed by an insider at Bank of America in a packet of documents, in January 2013, BofA sold servicing rights to 650,000 mortgages (worth $93 billion) to the parent company for Green Tree."
    28 Jun 2013, 04:35 PM Reply Like
  • ChrisTesta
    , contributor
    Comments (137) | Send Message
    Yeah, scamming customers by dramatically lowering delinquencies which anyone who actually read their filings could see. Also, Nationstar does a substantial amount of originations.
    1 Jul 2013, 09:49 AM Reply Like
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