A recent ruling by the Washington State Supreme Court goes against servicers’ practice of changing the lock on a property before a foreclosure. While such practices are generally allowed under mortgage contracts and have been approved by other states, the Washington state court ruling is favorable to 3,600 borrowers in a class-action lawsuit and could cause further issues for servicers. Laura Jordan v. Nationstar Mortgage centered on Nationstar’s actions after the borrower defaulted on her mortgage. A vendor acting on behalf of Nationstar inspected the property, deemed it to be vacant and changed the lock on the front door. The vendor also left a lockbox on the door with the key to the new lock and the borrower was provided access to the key. Jordan represents...
The U.S. Senate last week passed legislation easing FHA rules on condominium financing even as condo reform rules are undergoing clearance at the Office of Management and Budget. H.R. 3700, the Housing Opportunity Through Modernization Act of 2016, was approved by unanimous consent. The bill passed in the House of Representatives by a vote of 427-0 back in February. Industry observers say the bill would essentially codify long-anticipated guidelines the Department of Housing and Urban Development has drafted. Among other things, the bill requires...
The Government Accountability Office said regulatory uncertainty and other barriers may inhibit the use of private flood insurance. The Flood Insurance Market Parity and Modernization Act, H.R. 2901, which passed the House unanimously in April, expands flood insurance options by including private flood insurance. The bill also lifts certain federal restrictions placed on insurance companies and gives states more flexibility to license and regulate private flood insurance. The GAO reported...
While some banks have reduced their FHA lending in recent years and alternatives from the government-sponsored enterprises are still gaining traction, homebuyers still have access to low-downpayment mortgage programs, according to the latest Campbell/Inside Mortgage Finance HousingPulse Tracking Survey. “Most real estate agents say high loan-to-value ratio mortgages are readily available, especially for homebuyers with good credit,” said Tom Popik, research director for Campbell Surveys. The HousingPulse survey covering activity in June included...
The Consumer Financial Protection Bureau any day now could release its long-awaited regulation finalizing its proposed amendments to its 2013 mortgage servicing rules, posing yet another compliance challenge and requiring one more round of systems upgrades from the industry as a result. According to a consensus of industry experts, the two biggest subject areas have to do with bankruptcy proceedings and successors in interest. “On the eve of the servicing rules taking effect, the bureau made...
The after-mitigation defect rate on FHA mortgages increased from 5.5 percent in the fourth quarter of 2015 to 8.4 percent in the first quarter of 2016.
Ginnie Mae edged past Freddie Mac in servicing outstanding on single-family mortgages tied to mortgage-backed securities during the second quarter of 2016, according to a new ranking and analysis by Inside Mortgage Finance. MBS disclosure reports show the supply of Ginnie mortgage servicing rights grew 2.1 percent during the second quarter, climbing to $1.576 trillion, excluding multifamily and reverse mortgage MBS. The supply of Freddie single-family servicing edged up just 0.4 percent from March, reaching $1.558 trillion and slipping to third in the agency MSR market. Fannie Mae single-family MSR servicing declined...[Includes two data tables]
While Republicans continue to work toward decreasing the CFPB’s powers, former CFPB enforcement attorney Jennifer Lee suggests that with a divided Congress, the most significant power over the CFPB could be in courts.
Black Knight Financial Services reported net earnings for the second quarter of 2016 of $11.40 million compared with net earnings of $0.30 million in the previous quarter.
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