Compliance issues involving nonbank servicers remain an ongoing problem, according to new reports from state regulators. And the regulators raised concerns about how a shift by lenders to purchase mortgages increases compliance risks. “The increase in transfers of mortgage servicing rights to non-depositories in recent years has stressed these servicers’ sometimes inadequate operating systems and infrastructures, requiring greater regulatory attention,” the Multi-State Mortgage Committee said in a report to state regulators. The MMC was established by state regulators to supervise multi-state nonbank mortgage entities. Eight mortgage-related exams were...
Mortgage lenders will not be subject to supervisory or enforcement actions for violations of the early implementation guidance for the revised 2016 mortgage servicing rule, according to the Consumer Financial Protection Bureau. The CFPB issued “non-binding” policy guidance last week to allay lenders’ fear of being penalized if they fail to implement the 2016 servicing amendments up to three days early, said industry attorneys. Issued in August last year, parts of the rules take effect on Oct. 16, 2017, and April 16, 2018. Technically, the “relief” applies...
“In a normal [commercial] bank acquisition, senior managers usually get a big payday,” said former FHLBank Chicago President Alex Pollock. “But in this case, if you merge [with another FHLB] you could lose your job.”
The rating service said investors should have access to the reviewer’s findings or access to other information that would help determine if a breach should be pursued.
The CFPB recently released some non-binding policy guidance on early compliance with the 2016 amendments to its 2013 mortgage servicing rules, including a three-day grace period. Each of the changes are scheduled to take effect on either Thursday, Oct. 19, 2017, or Thursday, April 19, 2018. This is a problem for mortgage servicers who face the very real prospect of operating under one set of rules one day and having to switch systems, policies and procedures to comply with another set of rules the very next day. The regulator acknowledged this was an issue and decided to give the industry what amounts to a three-day grace period. “The bureau has heard concerns that these midweek effective dates for the 2016 ...
An expert in the commercial real estate debt market is calling on industry participants to “reset the business to where it used to be” to stop the commercial MBS market from shrinking any further. In a recent blog, Rick Jones, partner and co-chair of Dechert’s finance and real estate practice, noted CRE securitization, or at least the conduit part of the business, continues to dwindle. It has fallen from $800 billion in outstanding principal balance in 2007 to approximately $400 billion currently, with a run rate of about $50 billion annually. The downward trend is...
An “excess” servicing deal tied to $117.0 billion of mortgage servicing rights between New Residential Investment Corp. and Ocwen Financial appears to be dragging on longer than expected, causing anxiety in some circles. The transaction – which changes the fees paid to Ocwen resulting in a short-term (gross) gain of $425 million – was unveiled on May 1 and has yet to close. Piper Jaffray analyst Kevin Barker and his team write in a recent report that the deal was slated to be ...
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