When’s the last time a regional or megabank bought a nonbank mortgage company? Wells Fargo? JPMorgan? BofA? Citigroup? Nope, none of them, that we can recall...
Compliance violations with a disclosure rule that the Consumer Financial Protection Bureau implemented in October continue to cause problems for non-agency mortgages in the secondary market. The CFPB and Fitch Ratings separately provided guidance recently regarding the so-called TRID integrated disclosure rule that could help industry participants get more comfortable with TRID. There have been reports that some buyers of non-agency mortgages have balked at ...
Quicken Loan attempt to have a governmen false-claim lawsuit against the lender moved from Washington, DC, to a federal court in Detroit will not necessarily secure a win, according to a mortgage industry attorney. “I think it was more the device Quicken needed in order to become the plaintiff instead of the defendant,” said one attorney who preferred to remain anonymous because his firm handles other legal matters for Quicken Loans. He said it does not matter whether the case is tried in Washington or Detroit but what matters is its actual substance. At the same time, there is no reason why those defenses could not be raised in a DC court, the attorney added. Last month, a federal judge in Detroit dismissed Quicken’s preemptive lawsuit against the Department of Housing and Urban Development and the Justice Department for failure to state a claim. Ultimately, the court ...
The Department of Veterans Affairs has issued a clarification for non-borrower spouses on VA title documents, which apparently has created some confusion when lenders try to foreclose on VA-backed properties. VA is aware that lenders occasionally make loans to veterans who wish to use their home loan benefit to purchase a home and include their spouse in ownership, but the spouse does not wish to be on the mortgage loan. Including the spouse on the deed but not on the mortgage note can create a problem if the VA loan goes into foreclosure because the non-borrowing spouse’s ownership in the property could defeat the foreclosure action, the VA explained. “Delaying or preventing a foreclosure increases foreclosure claim cost to the government and the veteran,” the agency said. According to the VA guidance, when a loan is originated that includes a ...
Reading about prospective homebuyers’ experiences in trying to obtain a new FHA loan after emerging from a Chapter 7 (liquidation) bankruptcy reveals a great lack of understanding of FHA bankruptcy guidelines. Potential homebuyers apparently are concerned because they have been hearing different required waiting periods. The waiting periods in these stories vary from two to three years, and some were told to start counting from the sheriff sale date rather than from the bankruptcy discharge date. According to the FHA’s 2016 guidelines for bankruptcy, a Chapter 7 bankruptcy does not disqualify a borrower from seeking FHA financing after hardship if, at the time of case-number assignment, at least two years have elapsed since the date of the bankruptcy discharge. During the two-year period, the borrower must have re-established good credit by making ...
At yearend, JPM held $157.1 billion of what it calls “prime mortgages” (including option ARMs), a stunning 48 percent increase over the past 12 months.
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