The Consumer Financial Protection Bureau this week detailed servicing rules it will soon propose regarding disclosures to borrowers and servicing procedures. “The mortgage servicing rules we are considering reflect two basic, common sense standards – no surprises and no runarounds,” CFPB Director Richard Cordray said. “They would apply to all mortgage servicers regardless of how they are organized, including banks, thrifts, credit unions and nonbank servicers.” The rule, which will amend the Truth in Lending Act and Real Estate Settlement Procedures Act, is required by the Dodd-Frank Act. The CFPB said it will publish a proposal ...

Springleaf Finance completed another subprime mortgage-backed security comprised of vintage performing loans this week, its second such MBS in eight months. However, the firm is facing significant financial difficulties and stopped offering mortgages at the beginning of the year. The $473.01 million subprime MBS received a AAA rating from Standard & Poor’s, just like Springleaf’s $496.86 million subprime MBS in September. As with the previous security, the latest MBS was backed by seasoned performing loans, an average of six years-old in this case ...

Ocwen Financial last week completed its acquisition of mortgage servicing rights from Morgan Stanley’s Saxon Mortgage Services. Ocwen won some concessions from the seller since the sale was announced in October, though the servicer also faces criticism regarding its expanding portfolio. Ocwen acquired MSRs with an unpaid principal balance of $22.2 billion, largely comprised of non-agency mortgages. Ocwen had been subservicing $9.9 billion of the MSRs. Ocwen also acquired $2.7 billion in subservicing agreements from Saxon. The base purchase price for the Saxon transaction was ...

First Republic Bank – the primary source of loans for Redwood Trust non-agency mortgage-backed securities – has received high marks for its jumbo originations. FRB’s originations are concentrated around San Francisco, largely for wealthy borrowers. After relying on CitiMortgage for all of the loans in its first post-bust non-agency MBS issuance, Redwood has relied heavily on FRB. The lender accounted for a slight majority of the four securities totaling $1.41 billion Redwood has issued in 2011 and at the beginning of 2012 ...

Shortly after being acquired by Capital One Financial, jumbo lender ING Direct announced last week that it will exit the wholesale business. However, Capital One stressed that the lender will continue to offer jumbos on a retail basis. ING Bank was the sixth-ranked non-agency jumbo lender in 2011, according to Inside Nonconforming Markets, with an estimated $5.04 billion in such originations. That was down 26.9 percent from the previous year. A spokesman for Capital One said exiting wholesale lending will allow Capital One to ...

Subprime lending standards appear to be loosening across numerous asset classes, including home loans, but it is still difficult for borrowers to get a subprime mortgage. Equifax recently reported that subprime originations have grown as of the end of 2011 compared with the end of 2010. The company’s National Consumer Credit Trends Report was produced with Moody’s Analytics, and included details on credit cards, auto finance, consumer finance, retail credit and student loans. “The evidence of increased lending to subprime consumers demonstrates banks’ ongoing efforts to ...

The $25 billion servicing settlement involving five major bank servicers was approved by the US District Court for the District of Columbia on April 4 without a formal challenge from the Association of Mortgage Investors or anyone else. The servicers and settlement monitor Joseph Smith will agree on deadlines to implement the settlement’s various provisions, with the deadlines to be set between 60 days after approval of the settlement and up to 180 days after approval ... [Includes four briefs]

Mortgage industry participants have mixed views about the FHA’s revised policy on disputed debt despite a general concern over its impact on borrower eligibility and lenders’ bottom lines. This week, the FHA delayed implementation of the policy until July 1 to get more feedback from lenders and industry participants and to work on clarifying guidance. The policy’s initial effective date was April 1. Lenders felt the FHA had bypassed them when the agency decided to announce the policy revision in a Feb. 28 mortgagee letter, along with other FHA underwriting changes. Affected parties should have been able to ...

A Department of Housing and Urban Development proposal to reduce the amount of seller contributions on FHA loans on behalf of homebuyers would lock out lower-income purchasers, limit home sales and stall economic recovery, warned FHA lenders. As the proposal’s comment period ended on March 24, emailed comments opposing the proposed rule continued to pour in at HUD. “We are finally seeing an increase in buyers in our market in the entry-level purchase price,” said one loan officer. “I shudder to think of what will happen if this proposal goes through.” The verdict appears to be ...

Increased efforts by mortgage companies to educate loan officers about VA loans have helped push VA originations to new heights. Production of loans guaranteed by the Department of Veterans Affairs continued its upward trend in the first quarter of 2012, up 10.3 percent from the previous quarter, according to Inside FHA Lending’s analysis of VA data. On a quarterly basis, volume rose to $28.3 billion in the first quarter from $25.6 billion in the fourth quarter and from $20.7 billion (36.7 percent) in the third quarter. The top 25 lenders combined for ... [with 1 chart]