Read the latest news about mortgages, foreclosures, servicers, loan modifications, HAMP, Dodd-Frank, Qualified Residential Mortgage (QRM), mortgage brokers and more.
- 400,000 Foreclosure Settlement Checks Sent to Wrong Addres
Huffington Post 24 Jul 2013
The national foreclosure settlement included $3.6 billion in cash compensation to 4.2 million homeowners who received foreclosure notices in 2009 or 2010, but the payments have not done much to soothe borrowers' pain.
- Borrowers in Obama Housing Program Re-Defaulting, Watchdog Says
CNNMoney 24 Jul 2013
The Special Inspector General for the Troubled Asset Relief Program (SIGTARP) found in its quarterly report to Congress that borrowers who received help through the federal Home Affordable Modification Program (HAMP) are falling back into default on their mortgages at alarming rates.
- Colorado's 2nd-Largest Foreclosure Law Firm Sued in Over-Billing Probe
Denver Post 24 Jul 2013
Colorado Attorney General John Suthers has launched an investigation into whether Denver-based foreclosure law firm Aronowitz & Mecklenburg "misrepresents its posting costs" when billing homeowners for foreclosure expenses. The charges can reach $150, but the person who does the posting is paid only $7 plus mileage, according to a lawsuit filed in Denver District Court.
- Easing of Mortgage Curb Weighed
Wall Street Journal 24 Jul 2013
Regulators, including the Federal Reserve and the FDIC, reportedly want to ease a proposed requirement that banks hold 5 percent of the mortgage securities they sell to investors.
- Expect an Even Bolder CFPB in Year Three
American Banker 23 Jul 2013
Now that the Senate has confirmed Richard Cordray as head of the Consumer Financial Protection Bureau (CFPB), the federal bank regulator is expected to be even more aggressive in its third year of existence. Observers expect the CFPB to continue its progress to implement provisions of the Dodd-Frank Act and increase public enforcement actions.
- Mortgage Lender Accused of Paying Illegal Bonuses for Costlier Loans
Los Angeles Times 23 Jul 2013
The Consumer Financial Protection Bureau has filed suit against Castle & Cooke Mortgage, which it says paid illegal bonuses to employees who steered home buyers toward higher-cost financing.
- Industry Moves to Have Courts Vacate Disparate Impact Rule
PropertyCasualty360 23 Jul 2013
The American Insurance Association (AIA) and the National Association of Mutual Insurance Companies filed suit in Washington, D.C.'s U.S. District Court to vacate the Department of Housing and Urban Development's (HUD) disparate impact rule in the sale of homeowners' insurance.
- Backlog of Foreclosures Continues to Block Housing Recovery
Housing Wire 22 Jul 2013
National foreclosure trends reveal a large disparity in performance between states that have a judicial foreclosure process and those that have a non-judicial foreclosure process, according to a new report from the Federal Reserve Bank of New York.
- 'Consumer Mortgage Choice Act' Takes Away Consumers' Choices
American Banker 22 Jul 2013
Americans still have not fully recovered from the foreclosure crisis, yet some members of Congress already want to dilute new consumer protection rules for mortgage products, write Rep. Maxine Waters (D-Calif.) and Sen. Elizabeth Warren (D-Mass.). The proposed Consumer Mortgage Choice Act would undermine the Dodd-Frank Act’s ability-to-repay stipulation requiring lenders to assess whether a borrower can afford a mortgage before extending credit to that individual.
- Bill Reintroduced to Protect Americans From 'Abusive Government Takings'
MortgageOrb.com 22 Jul 2013
A measure initially proposed last fall to block U.S. municipalities from using eminent domain to prevent foreclosure has been reintroduced by Rep. John Campbell (R-Calif.). Resuscitation of the Defending American Taxpayers From Abusive Government Takings Act comes as a number of U.S. cities and towns consider buying loans from securitized mortgage pools, with investors receiving current market value for the underlying properties.
- A Reverse-Mortgage Nightmare
Seattle Times 20 Jul 2013
While not the standard for most reverse mortgages, thousands of these loans pushed through in the 1990s include unreasonable terms that equate with "financial abuse of the elderly," according to a string of lawsuits in California at the tail end of that decade.
- Boston Community Capital Tries to Save Foreclosed Homes by Buying Them
Washington Post 19 Jul 2013
Boston Community Capital has bought nearly 400 homes with troubled mortgages in the last four years; and it now has its sights set on Baltimore and Prince George's County in suburban Washington, D.C. -- two markets still navigating the fallout from the housing crash.
- Senate Panel Moves Nomination of Watt to Lead FHFA
American Banker 19 Jul 2013
The Senate Banking Committee has approved the nomination of Rep. Mel Watt (D-N.C.) to lead the Federal Housing Finance Agency. A close 12-to-10 vote along party lines, however, signals the challenge that Watt faces in the full chamber in light of GOP opposition to his nomination.
- J.D. Power Reports: Customer Satisfaction Improves as Primary Mortgage Servicers Strive to Comply With New Regulations
Sacramento Bee 18 Jul 2013
On a scale of one to 1,000, J.D. Power reports that primary mortgage servicers have boosted their score for overall satisfaction to 733 in the 2013 survey from 725 last year. The improvement follows new Consumer Financial Protection Bureau rules -- which have prodded servicers to ensure that their policies and procedures are in compliance...
- Misfit Borrowers Attracting Lenders as Housing Revives
Bloomberg 18 Jul 2013
Raj Date was a key architect of the Consumer Financial Protection Bureau's new rules for U.S. mortgage underwriting. Formerly the regulator's deputy director, he now is putting together a firm that will offer loans to borrowers who have been shut out by the CFPB standards.
- Mortgage Default Rates Hit Post-Recession Lows in June
MortgageOrb.com 17 Jul 2013
Americans are defaulting on their mortgages at the lowest pace since the recession, based on the S&P/Experian Consumer Credit Default Indices.
- Challenging HUD's Racial Quotas
Wall Street Journal 17 Jul 2013
The U.S. Department of Housing and Urban Development (HUD) issued a new rule in February that would allow the use of the disparate impact theory to prove housing discrimination, and several insurance groups have sued the agency to overturn the rule.
- Subprime Borrowers With Best Credit Score Denied Help
Bloomberg 16 Jul 2013
The U.S. real estate market may be in a second year of recovery; but home prices remain 26 percent shy of the 2006 peak, and nearly 10 million people are still underwater on their mortgages. Long-haul trucker Travis Armstrong is paying 7.5 percent interest on his loan, even though he has made payments for six years and has a credit score of about 800.
- Remainder of Mortgage Servicing Settlement Checks to Be Issued This Summer
National Mortgage Professional 15 Jul 2013
More than 3.9 million checks worth more than $3.4 billion have been mailed out to qualified borrowers under the Independent Foreclosure Review Payment Agreement since compensation began on April 12. As of July 11, recipients have cashed nearly 2.9 million of those checks, to the tune of more than $2.5 billion.
- Lender-Placed Insurance Reform Should Be a Top Priority
The Hill 15 Jul 2013
The Federal Housing Finance Agency (FHFA) began an investigation into lender-placed insurance (LPI) companies' commission-based relationships with mortgage providers. However, until a new director of the FHFA is confirmed, Tracey Carragher, CEO of Breckenridge Insurance Group, does not believe the agency will move to end these practices anytime soon.