A property management contractor for the Department of Housing and Urban Development has agreed to pay $4.3 million to resolve allegations that it billed the agency for FHA-related work it did not perform in violation of the federal False Claims Act. Cityside Management Corp. of Manchester, NH, allegedly failed to inspect the work of third-party vendors that it hired to perform termite inspections, treatments and repairs on repossessed houses in HUD’s real estate-owned inventory, as required by its contract with HUD. HUD’s inspector general investigated the case and referred it to the Department of Justice. Following the financial crisis, HUD held title to a large number of foreclosed homes acquired by borrowers with FHA financing. HUD contracted with various field service managers, including Cityside, to prepare the REO properties for resale. According to the Office of the U.S. Attorney for the ...
BofA CEO Brian Moynihan: “Now, the answer is, we just retain the mortgages and frankly the credit quality on ours is not worth paying the insurance [associated with selling loans into MBS].”
Not counting the new investment from Gatehouse, CALPCAP has raised $225 million from investors since its inception 10 years ago. Company principal Mark Mozilo told IMFnews the firm is continuing to hire as it builds out a national lending platform.
“The research will inform the CFPB and assist it in developing recommendations to streamline and improve the rules governing the mortgage industry and, more specifically, the ATR/QM rule,” said the CMC.
Mortgage-investing real estate investment trusts are having a field day this year, selling additional common stock – and even preferred – to the public, while nonbank lender/servicers continue to be locked out of the market. And given the fact that origination volumes could wind up 20 percent lower this year than in 2016, it’s unlikely that investors will give nonbanks much of a chance unless they can prove themselves as “disruptors” with a “fintech” bent to their operating strategy. But that isn’t...
For years, big banks have delivered nearly all of their conforming mortgage production to the government-sponsored enterprises and retained their jumbo mortgages in portfolio. But some big banks have changed tactics, exploring differing execution options for their originations. Paul Donofrio, CFO of Bank of America, said the bank retained about 90.0 percent of its mortgage production on balance sheet in the second quarter of 2017. BofA had $18.0 billion in originations during the quarter, including first mortgages and home-equity loans. The loans retained...
Watt noted that, “Some lenders are finally showing more willingness to extend credit to borrowers who meet the broader credit criteria reflected in the enterprises’ credit boxes…”
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