Nonbank mortgage originators continued to feel the heat of scrutiny from the CFPB over the last year, new data show. The number of the bureau’s examinations of non-depository mortgage lenders jumped an eye-popping 220.0 percent as of June 30, 2016, compared with the mid-year mark in 2015, according to data provided exclusively to Inside the CFPB from the agency per a Freedom of Information Act request.Further, in each of the first two quarters of this year, the CFPB examined as many nonbank mortgage originators as it had for the entire second half of last year, the data show. On the other hand, nonbank servicers got a slight reprieve, with CFPB exams falling 66.7 percent year over year (YOY) and ...
Laurie Maggiano, servicing and secondary markets program manager at the CFPB, appeared at a recent forum on housing finance sponsored by the Urban Institute and CoreLogic and highlighted the most significant changes the bureau has made to its 2013 mortgage servicing rules. She began with requests for clarification that servicers themselves made of the CFPB. “There are clarifications that servicers can indeed enter into short-term repayment plans without collecting a complete application document for consumers,” Maggiano said. Also, there is now more flexibility for servicers to stop collecting documents for a particular loss mitigation option when it is evident the borrower is not a candidate for the option.Additionally, the bureau provides clarification on how servicers select a reasonable deadline ...
The CFPB’s final amendments to its 2013 mortgage servicing regulations will enhance the industry’s practices and benefit the non-agency residential mortgage-backed securities market, according to analysts with Moody’s Investors Service. On the other hand, costs are going to go up, and the brunt of that burden will be borne by smaller servicers. “The new CFPB rules set forth multiple timeline requirements, compliance to which will require servicers to implement several system changes,” the analysts said in a new report. “Such changes will likely result in increased automation of servicing processes that will improve overall efficiencies.” However, implementation costs are going to go up because servicers will have to update their technology and adjust staffing levels to meet the new requirements...
CFPB Proposes Changes to FOIA Procedures, Treatment of Information; Would Expand Disclosure of Confidential Supervisory Information to State AGs. The CFPB has proposed amendments to the procedures used by the public to obtain information from the bureau under the Freedom of Information Act, the Privacy Act of 1974, and in legal proceedings.... Bank of America Close to Fulfilling Settlement Obligations. Bank of America has conditionally fulfilled more than 91 percent of its obligation to provide $7 billion worth of consumer relief under the terms of its historic mortgage settlement agreement with the U.S. Department of Justice and six states, according to Eric Green, the independent monitor of the agreement...
Although the new requirements could prompt an increase in costs, analysts said a new requirement aimed at increasing the number of times troubled borrowers are evaluated for loss mitigation will be particularly helpful in certain states…
HUD has been criticized by consumer advocates who feel the agency's NPL auctions have unfairly benefitted private equity firms and hedge funds at the expense of troubled borrowers.
Commercial banks and savings institutions are continuing their years-long flight from the volatile business of holding mortgage-servicing rights on their balance sheets, according to a new Inside Mortgage Trends analysis of call report data. At the end of June, banks and thrifts serviced $3.916 trillion of single-family mortgages for other investors, usually mortgage-backed securities trusts. That was down 2.1 percent from the previous quarter and ... [Includes one data chart]
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