The sale of residential mortgage servicing rights (MSRs) tied to Ginnie Mae mortgage securities is gathering steam with a handful of large deals currently in the market. Bank of America recently held an auction for $22 billion of legacy Ginnie MSRs, according to investment bankers familiar with the offering. Final bids were being taken this week. A winner has yet to be declared. A spokesman for BofA told Inside FHA Lending that in general the bank does not comment on MSR sales, though it has made exceptions when unloading very large packages. Earlier this year, for example, it sold just over ...
Cancelled Furlough Days. The Department of Housing and Urban Development has reduced the number of furlough days from seven to five days due to progress made in achieving the $69.6 million spending cuts mandated by sequestration. In this regard, previously scheduled furlough days of Aug. 16 and Aug. 30 are cancelled. As the end of FY 2013 approaches, HUD is making significant progress towards reaching its sequestration target, without needing additional furlough days, said Deputy Press Secretary George Gonzalez of HUD’s Office of Public Affairs. Government-wide automatic spending cuts became effective ...
Recent supervisory efforts by the Consumer Financial Protection Bureau have focused on “sloppy” servicing transfers and other loss mitigation issues. In a “supervisory highlights” review published this week, the CFPB said that between November 2012 and June 2013, it discovered several issues with servicing transfers that can cause borrowers to miss payments, delay important processes or affect the good standing of a borrower’s mortgage. The CFPB said its examiners found noncompliance with ...
From the start of the Home Affordable Modification Program through the end of 2012, mortgages serviced for the government-sponsored enterprises accounted for the largest share of HAMP Activity. However, beginning this year, mortgages in non-agency mortgage-backed securities and loans in portfolio have overtaken GSE mortgages in terms of total HAMP activity. As of the end of the second quarter of 2013, non-agency mortgages accounted for 51.2 percent of the 1.21 million ... [Includes one data chart]
Additional mortgage servicing rulemaking and perhaps even enforcement actions from the CFPB might be inevitable, now that the bureau has issued a report detailing a number of mortgage servicing problems at banks and nonbanks. “Our examinations of banks and nonbanks allow us to correct problems before more consumers are affected,” said CFPB Director Richard Cordray. The bureau’s new report, issued last week, “highlights both the mortgage servicing problems throughout the industry and the challenges of making sure that nonbanks are...
There are plenty of challenges associated with the CFPB’s new standards for error notices and information requests, which are part of the bureau’s new mortgage servicing standards, and policy analysts at PricewaterhouseCoopers have some compliance suggestions to help companies measure up. “The new standards for error notices and information requests are expected to have a substantial impact on all mortgage servicers,” the PwC analysts said in a recent overview. “Implementing the changes will require careful review and possibly...
The CFPB may need to reach out more to consumers in areas that face the highest risk of foreclosure, and intensify pressure on lenders that serve older Americans, according to a new analysis of the CFPB’s consumer complaint database by a handful of faculty members at the Yale University School of Law. Analyzing a new data set of 110,000 consumer complaints lodged with the bureau, they found that Bank of America, Citibank and PNC Bank were “significantly less timely in responding to consumer complaints than the average financial...
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