Servicers, be sure to share upcoming delivery blackout with colleagues
By Cathie Ericson | November 29, 2016
The blackout is coming, but it shouldn’t be causing any alarm for servicers by now.
We’re referring to the impending temporary moratorium on bulk transfers of servicing portfolios from Feb. 1, 2017 to March 31, 2017, part of upcoming changes in investor reporting. Concurrent servicing transfers are not affected. (See related coverage.)
No Time to Lose
Although Feb. 1 sounds some time away, there’s really no time to waste: Servicers need to submit an approval request 60 days before the transfer period. That means Dec. 1 is the date that matters for planning purposes – and that’s just two days away.
Negotiators need to be mindful of the blackout days as they price and assess bids in mortgage servicing rights (MSR) transactions, says Thomas Kowick, a senior director at Fannie Mae.
Bids should cover options for handling the delay, such as plans to hold the mortgage servicing rights longer or build a longer sub-servicing time into the purchase and sale agreement.
Spread the Word
While Fannie Mae has been diligently communicating the upcoming change, the news about the moratorium needs to spread past those immediately impacted in the organization to the highest levels, says John Jozwiak, director of single-family re-platforming for Fannie Mae.
“We know that servicers working on the Fannie Mae changes to investor reporting effective Feb. 1 have heard this message, but we also want to make sure the message is circulating through organizations to others who need to know – from origination to servicing up to the CEOs,” says Jozwiak.
“Our customers and their counterparts need to understand the impacts of this temporary servicing transfer moratorium to their organization and make any necessary contingency plans. “The time is now.”
For more information, visit Fannie Mae’s website.
Cathie Ericson is a freelance writer for The Oregonian, Learnvest.com, Forbes.com, and other online and print publications.