Newrez cuts 123 employees after acquisition of servicing company
National Mortgage News
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Newrez let go of over 100 employees in Colorado and Florida following the completion of its acquisition of Computershare Mortgage Services and affiliate Specialized Loan Servicing LLC. Real estate investment trust Rithm Capital Corp, parent company of Newrez, bought the company for close to $720 million as a means to further expand its servicing presence. The deal was announced late last year and closed in early May. Soon after, the company let go of 123 employees affiliated with Computershare Mortgage and SLS, Worker Adjustment and Retraining Notifications notices filed May 2 in Colorado and Florida show.
The Department of Veterans Affairs previously released a deadline with some leeway for a transition from a voluntary foreclosure suspension into a new loss mitigation program, where appropriate; but trade groups still want more time. The Housing Policy Council and Mortgage Bankers Association in a letter released late last week asked for the VA to "extend the mandatory compliance date beyond Oct. 1" citing a need for more guidance related to the Veterans Affairs Servicing Purchase program. The two groups specifically called for more direction "around loss mitigation and servicing transfers" as "critical components of the work that remains to prepare the program for implementation."
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A home-equity loan pilot Freddie Mac has proposed with the intent of testing the potential for more programmatic purchases of closed-end second liens could have considerable overlap with a private market when more broadly executed. The government-sponsored enteprise's proposal "has merit" in the current interest-rate environment given that borrowers with low-rate first-liens have been reluctant to get new primary mortgages, Kroll Bond Rating Agency said in a new report, echoing its stated aim. However, the rating agency also raised questions about "the potential effect of the GSE program on PLS," the agency said, referring to the private-label securities market.
Loan product offerings increased for the fourth month in a row, but the muted change from March means that lenders are still not certain better times are ahead, the Mortgage Bankers Association said. The Mortgage Credit Availability Index was 94 in April, compared with 93.9 in March and 99.6 one year ago. Any time the index is under 100, it means credit is tighter than it was in March 2012, when the industry was still dealing with the fallout from the financial crisis. While some claim consumers are finally accepting higher mortgage rates and moving ahead with their home searches, others are more bearish on the current Spring home purchase season.
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