According to Moody’s rating scale of long-term corporate obligations, obligations rated Caa are judged to be of “poor standing” and are subject to “very high" credit risk...
Over the past year speculators have placed some heavy bets against certain publicly traded mortgage companies by shorting their stocks, a “trade” that could be petering out as investors take their money off the table. According to investors and analysts who track companies such as Nationstar Mortgage, Ocwen Financial and Walter Investment Management, the share price of all three has fallen so dramatically that the days of easy profits are over. Ocwen, for example, presently trades...[Includes one data table]
Citadel Loan Servicing this week rolled out something the residential market hasn’t seen in quite some time: a nonprime second lien from a nonbank. But don’t expect a groundswell of copycat loans. Moreover, it’s doesn’t appear that Citadel’s bold move is likely to ignite the return of nonbanks to producing second liens of any type – whether it’s a closed-end second or a line of credit. Anecdotal evidence suggests...
“Without nonbanks, today’s sluggish mortgage market would be much less vibrant,” according to research released this week by two researchers associated with Harvard University. Their working paper stresses that implementing bank-like standards for nonbanks isn’t the best strategy to mitigate risks in the housing finance system. The paper was authored by Marshall Lux, a senior fellow of the Mossavar-Rahmani Center for Business and Government, which is part of the John F. Kennedy School of Government at Harvard University; along with Robert Greene, a research assistant at the same center. They called...
Chuck Klein, managing director for Mortgage Banking Solutions, agrees that most of the coming M&A activity will center on small- and medium-sized shops.
The CFPB and the Florida Attorney General’s office were granted a $27.7 million final judgment on Friday against the Hoffman Law Group and corporate affiliates, which allegedly used deceptive marketing practices and scammed distressed homeowners into paying illegal advance fees. The lawsuit named Hoffman Law Group (formerly Residential Litigation Group), its operators, Michael Harper, Benn Willcox and attorney Marc Hoffman, and its affiliated companies, Nationwide Management Solutions, Legal Intake Solutions, File Intake Solutions, and BM Marketing Group, all based in North Palm Beach, FL. The two government agencies accused the companies of tricking consumers into paying millions of dollars in illegal upfront fees to join frivolous lawsuits that the companies falsely claimed would pressure banks to modify their loans or ...
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