Magazine article Mortgage Banking

A Question of Value. (Portfolio)

Magazine article Mortgage Banking

A Question of Value. (Portfolio)

Article excerpt

SERVICING WAS THE LOSER LAST YEAR AS THE ORIGINATION BOOM TOOK CENTER stage. The value of Servicing was shattered by the groundswell of refinancing in 2002. The amount of servicing being sold in the market was negligible, partly due to depressed prices.

Regina Lowrie, president and chief executive officer of Gateway Funding Diversified Mortgage Services, Fort Washington, Pennsylvania, was quoted in our feature "Servicing's Value Proposition" this month as saying, "The value of servicing has dried up over the last year." On top of that, John Ohman, president of Flatirons Capital Management LLC, St. Cloud, Minnesota, said in the same article by Neil Morse, "We've seen the playing field narrow as far as who is out there buying servicing."

If that wasn't enough bad news, in the same article, Geoffrey Oliver, managing director of financial services consulting, BearingPoint Inc. (formerly KPMG), predicted "one or two fairly sizable writeoffs in the fourth quarter [of 2002] that will be announced in the first quarter [of 2003] as audits proceed."

At the same time, last year servicing employees were run ragged trying to post new loans and process payoffs for refinancing borrowers and home sellers. …

Search by... Author
Show... All Results Primary Sources Peer-reviewed

Oops!

An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.