“The question was a surprise to many investors and resulted in clients questioning whether a CFPB crackdown in the timeshare market was ahead,” writes Compass Point analyst Isaac Boltansky…
The CFPB last week brought an $18.5 million enforcement action against Discover Bank and its student loan affiliates for engaging in allegedly illegal private student loan servicing practices. The bureau’s enforcement action “demonstrates how Discover failed at providing the most basic functions of adequate student loan servicing for a portion of the loans that were transferred from Citibank,” said the bureau. Thousands of consumers encountered problems as soon as their loans became due and Discover gave them account statements that overstated their minimum payment, the CFPB said. Also, “Discover denied consumers information that they would have needed to obtain tax benefits and called consumers’ mobile phones at inappropriate times to contact them about their debts.” The CFPB concluded that the ...
The complaints that consumers filed with the CFPB about various aspects of their mortgages generally rose in the second quarter, as the mortgage market churned out new originations at elevated levels, a new analysis by Inside the CFPB found. Total consumer gripes rose 7.5 percent from the first quarter of 2015 to the second, the latest data from the bureau’s consumer complaint database show. The increase was largely driven by a surge of criticisms about the mortgage loan application and origination process, which climbed 11.8 percent during the period. Grumbling about loan modifications also increased during the period ending June 30, up 5.7 percent, a much higher rate of increase than the recent upward tick seen in default rates. Grievances ...
FHA/VA lender Castle & Cooke Mortgage is embarking on a major expansion that could boost their standing in the government-backed market if things work out as planned. The Salt Lake City-based retail lender is in the midst of an aggressive expansion plan to be in 48 states by the end of 2016, according to Adam Thorpe, who was named president and chief operating officer in late 2014. C&C’s government-backed lending activities are mostly in the West with licenses to operate in 18 states. Recently the company, which entered the mortgage market in 2005, opened a new branch office in Anaheim, CA, bringing to 36 the number of C&C branch offices across the country. Orange County and the Southern California housing market are among the priciest in the nation, and the high demand and lower inventory in those areas can be good for government and ...
With bond prices expected to fall further and interest rates headed north, analysts who cover mortgage-investing real estate investment trusts are sharpening their knives on the sector. The general consensus is that share prices are going nowhere fast and returns are no longer attractive. A new report on mortgage REITs from Keefe, Bruyette & Woods doesn’t mince words: “Sentiment on the mREIT sector remains pretty poor, and we don’t anticipate 2Q15 results to do much to improve that. We’re not expecting a horrible quarter, but we anticipate slight disappointment along more or less all relevant dimensions.” Although many mortgage REITs have yet to report second-quarter earnings, the early expectations are...
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