Read the latest news about mortgages, foreclosures, servicers, loan modifications, HAMP, Dodd-Frank, Qualified Residential Mortgage (QRM), mortgage brokers and more.
- More Banks Could Face Scrutiny Over Foreclosure Billing Practices
American Banker 28 Aug 2013
Federal and state regulators are more closely scrutinizing the practice of padding foreclosure expenses, warning mortgage servicers that they are liable for ensuring that fees charged by lawyers and third-party vendors are reasonable and accurate.
- Credit Reporting Update Will Distinguish Between Short Sales and Foreclosures
Palm Beach Post (FL) 28 Aug 2013
By November, Fannie Mae hopes to have corrected a problem tied to reporting distressed homes. The company did not have an automated way to distinguish between foreclosures and short sales, but its credit reporting update should make it easier and faster for people who pursue short sales to qualify for financing again.
- New U.S. Rules to Cut Mortgage Risk, Improve Underwriting Practices
Reuters 28 Aug 2013
On Aug. 28, the U.S. Federal Deposit Insurance Corp (FDIC) will vote on whether to release for public comment a revised proposal to curtail risk in the mortgage market and limit poor underwriting practices that fueled the housing bubble. The rules would require lenders and bond insurers to hold a portion of the loans they pool and sell as securities, with the exception of those that are deemed low risk.
- EverBank to Pay $37 Million in Foreclosure Settlement With U.S. Govt.
Jacksonville Business Journal (FL) 26 Aug 2013
Jacksonville, Fla.-based EverBank has agreed to a roughly $37 million cash settlement to compensate more than 32,000 borrowers that it foreclosed on in 2009 and 2010. Qualifying borrowers will receive between $1,050 and $125,000 each.
- First Horizon Subject of Mortgage Probe
Memphis Business Journal 26 Aug 2013
Officials from the Justice Department and HUD are conducting an investigation into First Horizon National Corp. over certain FHA-insured mortgages it originated. First Horizon has met with officials over potential violations of the False Claims Act.
- State Says Mortgage-Relief Companies Prey on Homeowners
Florida Times-Union 26 Aug 2013
Florida Attorney General Pam Bondi has requested an injunction against The Cambridge Land Trust Co., The Hartford Land Trust Co., and Robert J. Vitale, saying that they used false claims of mortgage relief to take advantage of distressed homeowners.
- Charges Filed Against Mortgage Payment Firm
The Columbian (WA) 26 Aug 2013
In Washington state, the Department of Financial Institutions (DFI) is filing charges against Nationwide Biweekly Administration Inc., which accepts and transmits mortgage payments on behalf of homeowners. The department claims the firm is not licensed as a money transmitter and that it has made statements that misled consumers into believing that they would save money by having Nationwide repay their mortgage for them.
- Fifth Third Charged by HUD in Disability Discrimination Suit
American Banker 23 Aug 2013
HUD has brought bias charges against Fifth Third Bank, which is accused of discriminating against a couple with disabilities who were seeking to refinance their mortgage.
- New Illinois Law Protects Renters in Foreclosures
Southern Illinoisan 22 Aug 2013
Illinois Gov. Pat Quinn has signed into law a bill that protects renters if their landlord's property is foreclosed on.
- CFPB Mortgage Regs: Gearing Up for Implementation
Credit Union Times 22 Aug 2013
Starting on Jan. 10, 2014, credit unions and mortgage processors expect to be tested on how well they have prepared for new mortgage regulations from the Consumer Financial Protection Bureau (CFPB)
- CFPB Slams Mortgage Servicers Over 'Sloppy' Tactics
American Banker 22 Aug 2013
Mortgage servicing issues persist, despite a renewed focus on these problems in the wake of the foreclosure crisis, finds a report issued Aug. 21 by the Consumer Financial Protection Bureau. Based on exams conducted between November and June, the agency specifically cited "sloppy" and "poor" practices related to mortgage transfers, payment processing, and loss mitigation procedures.
- U.S. Bank Regulators to Discuss 'Skin-in-the-Game' Lending Rules
Reuters 21 Aug 2013
On Aug. 28, the Federal Deposit Insurance Corp. (FDIC) will meet to discuss the credit risk retention rule, or the "skin-in-the-game" rule, under the Dodd-Frank law. The rule would require lenders to retain 5 percent of securitized mortgages on their books, with the exception of the most basic loans.
- Firm Sued by State Operating Here Too
Sarasota Herald-Tribune (FL) 21 Aug 2013
Records show that Whitestone Capital Trust LLC, a foreclosure rescue firm being sued by Florida's attorney general over unfair trade practice allegations, took over nearly a dozen distressed properties from borrowers in Southwest Florida.
- Mortgage Fraud Reports Dropped 25 Percent in 2012
American Banker 21 Aug 2013
Reports of suspected fraud, up every year from 2001 to 2011, fell back for the first time last year. The Financial Crimes Enforcement Network (Fincen) fielded just under 70,000 reports of suspected fraud in 2012, a 25 percent drop from the previous year.
- University of Utah Raises Red Flag of Treatment of Latino Mortgage Applicants
SBWire 20 Aug 2013
Investigators with the Bureau of Economic and Business Research at the University of Utah say they have documented a correlation between ethnicity, loan approvals, and interest rates.
- FHA Cuts Mortgage Wait Times After Hard Times
Chicago Tribune 16 Aug 2013
Borrowers now will be able to qualify for an FHA-backed mortgage one year after a bankruptcy, foreclosure, or short sale -- much sooner than the previous waiting periods of two years following bankruptcy and three years following foreclosure or short sale.
- CFPB Updates Exam Guide for QM, Mortgage Rules
American Banker 16 Aug 2013
The Consumer Financial Protection Bureau on Aug. 15 issued updated exam procedures for a number of mortgage rules set to take effect next year. The interim exam procedures cover far more details and rules related to mortgages than when the agency released its first round of exam guidance in June.
- Richmond Rebuffed in Bid to Buy Loans Using Eminent Domain Threat
Los Angeles Times 16 Aug 2013
The city of Richmond, Calif., recently asked financial institutions to sell 624 troubled mortgages and threatened to seize them through eminent domain, but has been turned down.
- Home Foreclosures on Track for 6-Year Low
Associated Press 15 Aug 2013
Lenders seized 36,964 U.S. homes in July, 31 percent fewer than a year earlier, reports RealtyTrac. The firm calculates that foreclosures are on pace to reach almost 490,000 by the end of December, a total that will reflect a 27 percent decrease from 2012 and the lowest whole-year volume since 2007.
- Surprising Foreclosure Hot Spots
CNN Money 15 Aug 2013
Many U.S. housing markets are recovering from the worst of the foreclosure crisis, but others are feeling the pain. Maryland, Oregon, and New Jersey previously had relatively stable housing markets even during the housing slump; but new foreclosure filings in those states climbed by double- and triple-digit percentages last month, according to RealtyTrac.