Read the latest news about mortgages, foreclosures, servicers, loan modifications, HAMP, Dodd-Frank, Qualified Residential Mortgage (QRM), mortgage brokers and more.
- Massachusetts Enhances Mortgage Foreclosure Protections
Republican (MA) 21 Oct 2013
The Massachusetts Division of Banks is filing regulations that will increase homeowner protections by preventing national and state lenders from foreclosing on a property if an application for a loan modification is underway.
- Foreclosures Dog Even Wealthiest Home Buyers
MarketWatch 20 Oct 2013
Jumbo borrowers who defaulted on their mortgages in the last few years have found it virtually impossible to buy another home. Many are self-employed borrowers whose incomes have recovered since the recession ended, and some are borrowers who walked away from underwater mortgages but now want to take advantage of recent home-price gains. The few lenders willing to do business with these borrowers tend to require long waiting periods, higher down payments, and higher interest rates.
- Nevada AG Secures $11.5M Settlement From Securitizer of Alt-A Loans
Housing Wire 18 Oct 2013
Loan securitizer DB Structured Products, an arm of Deutsche Bank, agreed to pay $11.5 million to settle the Nevada Attorney General's investigation into DB's packaging and sales of subprime and Alt-A loans. Nevada Attorney General Catherine Cortez Masto first launched the investigation to determine if the original lenders used tricks to disguise underwriting and loan-quality issues.
- Big Banks Close to Satisfying Obligations Under Mortgage Settlement, Report Says
Washington Post 17 Oct 2013
Despite scrutiny over how they have handled the process, the country's biggest banks appear to be on the brink of satisfying their obligations to aid struggling homeowners under national settlement to remedy flawed foreclosure practices.
- Fannie Mae to Increase Down Payment Requirement to 5 Percent
MortgageOrb.com 16 Oct 2013
An update to Fannie Mae's Desktop Underwriting (DU) system, scheduled to take effect on Nov. 16, includes an option that allows the system to ignore foreclosure information on a credit report if a pre-foreclosure sale is also documented. While this change will offer lenders more leeway in underwriting and approving borrowers who previously unloaded a home through a pre-foreclosure or short sale, another DU provision could make it more difficult for some applicants to qualify for Fannie Mae financing. Specifically, the minimum down payment required from borrowers will rise to 5 percent of the loan balance from 3 percent currently.
- CFPB Offers More Guidance on Contacting, Responding to Troubled Borrowers
Housing Wire 15 Oct 2013
The Consumer Financial Protection Bureau has released additional guidance and an interim final rule detailing how mortgage servicers should respond when distressed borrowers experience unexpected life events or other legal problems, like a death in the family or bankruptcy.
- Housing Alliance Accuses U.S. Bank of Failing to Maintain, Market Foreclosed Homes
Milwaukee Journal Sentinel (WI) 15 Oct 2013
The National Fair Housing Alliance has amended its federal housing discrimination complaint against U.S. Bank to include Milwaukee on its list of cities where the lender has failed to maintain and market foreclosed homes in African-American and Latino neighborhoods.
- Credit Default Rates Increase Nationally
National Mortgage Professional 14 Oct 2013
According to the S&P/Experian Consumer Credit Default Indices, national default rates rose in September. The national composite edged up from 1.34 percent in August to 1.38 percent. Default rates were 1.28 percent for first mortgages, up from 1.23 percent; 0.69 percent for second mortgages, up from 0.57 percent; 1.15 percent for auto loans, up from 1.11 percent; and 3.14 percent for bank cards, up from 3.12 percent.
- FHA Urges Mortgage Forbearance During D.C. Shutdown
American Banker 11 Oct 2013
Federal Housing Administration (FHA) Commissioner Carol Galante in a Friday letter urged banks and mortgage lenders to "make every effort to communicate with and assist affected borrowers."
- Regulators Encourage Loan Workouts for Those Caught in Gov't Shutdown
American Banker 10 Oct 2013
Banks and other financial institutions should consider loan modifications for borrowers impacted by the government closure, according to federal regulators.
- SunTrust Settles Some Mortgage Claims With Regulators
Reuters 10 Oct 2013
SunTrust Banks Inc. on Oct. 10 announced that it has reached agreements with the Department of Housing and Urban Development and the Department of Justice to settle mortgage origination claims and its obligation under the national mortgage servicing settlement.
- CFPB Takes Aggressive Action Against HMDA Violators
American Banker 10 Oct 2013
The Consumer Financial Protection Bureau (CFPB) on Oct. 9 penalized two non-bank mortgage lenders for reporting erroneous data to regulators.
- September Foreclosure Activity Falls 27 Percent
Housing Wire 10 Oct 2013
The newest data from RealtyTrac reflect a sharp drop in U.S. foreclosure filings in September, which was the 36th consecutive month of year-over-year declines. According to the report, 131,232 homes nationwide were facing a default notice, auction sale, or bank seizure last month -- 27 percent fewer than in September 2012.
- MBA: Mortgage Credit Availability Declined 0.7 Percent in September
Banker & Tradesman 08 Oct 2013
Loan underwriting criteria are tightening, if the Mortgage Credit Availability Index (MCAI) is any indication.
- Foreclosures Recede as Housing Rebounds
Wall Street Journal 08 Oct 2013
The number of foreclosures continues to fall but remains at a level that is higher than normal. CoreLogic reports that there were 48,000 foreclosures completed in August, down 35 percent from a year earlier.
- Cash-Strapped States Diverted Dollars Meant for Mortgage Relief
Chico Enterprise-Record (CA) 08 Oct 2013
Many states are using money from a $2.5 billion settlement with major mortgage lenders -- meant to alleviate the housing crisis -- to plug budget holes, fund pet projects, or promote economic development. Instead of for the intended purpose, states have tapped at least $1 billion for non-housing related initiatives.
- Delinquencies Fall at the GSEs
Housing Wire 07 Oct 2013
Preventative measures taken by Fannie Mae and Freddie Mac saved 117,000 homes from foreclosure in the second quarter of the year, the Federal Housing Finance Agency (FHFA) reports.
- Fannie Plans DU System Updates to Correctly Document Pre-Foreclosures
Housing Wire 04 Oct 2013
Fannie Mae is in the process of upgrading Desktop Underwriter (DU), its automated underwriting system, to ensure that lenders have sufficient flexibility during the underwriting process to approve borrowers who accidentally end up with a foreclosure on their credit report.
- U.S.: Bank Charged Minorities Higher Rate
Washington Post 02 Oct 2013
Capital One is the latest in a string of financial institutions to settle allegations of unfair lending, with a deal to pay $2.85 million in damages. Its 2009 acquisition of Chevy Chase Bank led to a review of financial records, which exposed the bias against black and Latino mortgage borrowers at Chevy Chase since 2006.
- Fla. Force-Placed Settlement Overcomes Challenge from Rival Calif. Plaintiffs
PropertyCasualty360 02 Oct 2013
U.S. District Court Chief Judge Frederico Moreno granted preliminary approval for a force-placed insurance (FPI) lawsuit against J.P. Morgan Chase, and set a final fairness hearing for February 2014. The deal could be worth $300 million to 1.3 million homeowners nationwide