It’s likely that little in the way of money is changing hands on the deal. By selling the MSRs to Fannie, Citi is also settling the payment of “compensatory” fee claims the GSE is owed by the bank.
Specifically, the CFPB is seeking comment on what consumers find most problematic about the closing process, including errors and changes at the closing table and the involvement of third-parties.
The FHFA IG audit estimates that some 9.5 percent of claims for pre-foreclosure property inspections in 2011 and 2012 resulted in $5 million of overpayments by Fannie Mae.
It may be time for the mortgage industry to take a chill-pill: applications are on the rise again, rates have stabilized and some firms are actually hiring loan officers.
Mortgage lenders large and small have indicated they plan to stay away from making mortgages that do not fit into either the “safe harbor” or the “rebuttable presumption” QM boxes.
According to the bank’s fourth quarter earnings statement, 68 percent of its originations were refis – the mirror image of Wells Fargo, which had 68 percent of its production in purchase-money loans.
As expected, the Mortgage Bankers Association this week lowered its 2014 origination forecast to $1.12 trillion, a $57 billion decrease from its previous estimate. Word of the reduction was making the rounds last week.
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