Large Banks Are Selling Mortgage-Servicing Rights

Oct. 24 (Bloomberg) — Citigroup Inc., the third-biggest U.S. bank, is selling mortgage-servicing rights on $63 billion of loans, its largest potential sale of this type since the 2008 financial crisis, according to two people briefed on the offer. Citigroup’s offering comes as the nation’s banks, including Bank of America Corp. (BAC) and Ally Financial Inc. (ALLY), retreat from the almost $10 trillion mortgage-servicing market amid looming Basel III regulations. READ MORE >>>>

Immigration reform will create more legal low-fee workers. ObamaCare will create more part-time workers. These new workers will migrate to the low-fee and low-skill mortgage segment of the industry and further reduce the fees paid for mortgage inspections and property preservation tasks. Higher insurance policy limits will be required. Expect more fraud in the mortgage segment.

The large national and regional mortgage field service firms with their greed along with new Government immigration and health-care programs are destroying the mortgage segment.