The Rocky Road For The Mortgage Segment … Servicers Operating At A Huge Loss … On Life Support
Dallas, Texas-based Nationstar Mortgage was the only one out of the three largest U.S. non-bank mortgage servicers rated by Moody’s to turn a profit during 2015, according to Moody’s Investors Service’s Servicer Dashboard on Thursday.
Nationstar’s net income for 2015 was $43 million, while the other two largest servicers, Ocwen Financial Corp. and Walter Investment Management Corp., posted losses of $246.7 million and $263.2 million for last year, respectively.
The mortgage servicers and Mortgage Order Mills (MOMs) are on life support. They are requiring more services from mortgage field service inspectors and paying lower fees. The average fee for a mortgage drive-by inspection is now less than $3 for an 8-photo inspection. You will be required to service some rural areas and bad neighborhoods for the same low fee. The profit is maybe $1.50. Expect to pay about $1,200 upfront for insurance. One MOM will even tell you where you MUST purchase your insurance … does that sound like a kick back … I don’t know … what do you think?
Mortgage delinquencies are at a 16-year low. The mortgage industry is dead. Commercial and insurance field service inspectors are doing quite well. At SOFI, we sold more National Field Service Directories in April 2016 than in any past year. In January, we designed more resumes than in any past year. Field inspectors are moving away from the mortgage segment to the higher quality firms that pay the higher fees … the commercial and insurance segments. Most mortgage inspectors never leave the mortgage segment. They just accept lower fees and less profit. They wear out their car and use it to raise chickens. How are you doing in 2016?