This just in: Washington doesn't give a darn about nonbank mortgage servicers.
The story is developing, but a Bloomberg headline says regulators aren't rushing to assist mortgage servicers who are about to be hit with a wave of missed payments over coming months. To review, mortgage servicers are on the hook for getting money to mortgage investors whether or not folks pay on their loans.
There was some hope floated last weekend that D.C. was considering some sort of assistance, but the Bloomberg headline says otherwise.
A result of the global financial crisis was that the big banks jettisoned a lot of mortgage servicing, leading to the rise of these nonbank players. Might this crisis prompt a migration back to the banks?
Players of note: New Residential (NRZ -2.3%), Mr. Cooper (COOP -1.7%), Ocwen Financial (OCN -6.9%), Cherry Hill Mortgage (CHMI -15.2%)