Aurora Loan Services, once a huge player in the non-agency subprime and Alt A market, has agreed to resolve a class-action lawsuit alleging it duped distressed borrowers into paying monthly fees on nonperforming loans that were already destined for foreclosure. The $5.3 million settlement will be split among 15,000 California borrowers who signed bogus loan-workout agreements with the false hope of curing their deficiencies and keeping their homes. Borrowers claimed that Aurora had misled them into thinking that their foreclosures were on hold while they were being considered for loan modification. In reality, however, Aurora’s policy was...
Individual accountability is the regulatory catchphrase of the moment not only at the CFPB but at the Securities and Exchange Commission and state regulatory agencies as well.
Some in the industry are concerned that HAMP interest-rate resets, which begin later this year, could cause defaults on modified loans to increase, lowering the number of successful modifications under the program.
Treasury and the FHFA not only acted “arbitrarily and capriciously” in executing the Third Amendment to the Preferred Stock Purchase Agreements with the GSEs, the agencies ignored “salient data,” including Fannie’s and Freddie’s tens of billions of dollars in deferred tax assets.
Fairholme still owns a ton of GSE stock. At press time Wednesday, Fannie common was trading at $4.77. The most Fairholme ever paid for Fannie common was $2.07. Sweet…
Zach Oppenheimer, a senior vice president at Fannie Mae, said it’s a positive development that more private capital is coming into the mortgage servicing space.
The researchers confirmed that homebuilder originations from 2001 through the end of 2008 tended to go to lower credit-quality borrowers compared with originations from unaffiliated lenders.
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