The GSEs continued to wrangle with seller/servicers over repurchase requests during the fourth quarter of 2012, but mostly over loans originated five years earlier.
The CFPB recently issued guidance to mortgage servicers reminding them of their legal obligations to protect borrowers during the transfer of mortgage servicing between firms. “Consumers should not be collateral damage in the mortgage servicing transfer process,” said CFPB Director Richard Cordray. “This guidance directs all mortgage servicers, both banks and nonbanks, to follow the laws protecting borrowers from the risks of such transfers and makes clear that we will be monitoring them for compliance.” In CFPB...
The CFPB’s new mortgage servicing rule might bring clarity and consistency to the industry – but at a cost of increased litigation and enforcement actions, a top attorney said recently. “There has been and will continue to be a focus on the fact that the rule grants borrowers a private right of action associated specifically with loss mitigation and early intervention provisions,” said Michael Waldron, a practice leader in the mortgage banking group at Ballard Spahr. However, the reality is, the risk here is much broader. “The rules...
Some mortgage servicers face capacity issues when it comes to the plethora of new regulatory requirements and need outsource assistance, but the rest of the industry will need help with the process requirements and planning, according to a compliance service provider. “While all mortgage servicers are facing challenges in staying compliant with the industry’s many changing regulations, the nature of those challenges varies by the organization’s size and require varying solutions,” said Loren Morris, senior vice...
CFPB Remains on Radar of Hostile House GOP. The activities and influence of the CFPB will be a subject of keen interest to hostile Republicans on the House Financial Services Committee, according to the committee’s recently published agenda for the 113th Congress. The committee said it will scrutinize the CFPB’s regulatory, supervisory and enforcement initiatives to make sure they protect consumers against unfair and deceptive practices without stifling economic growth, job creation or reasonable access to credit. “In...
Banks are likely to pursue more bulk sales this year and the next to rid their books of nonperforming real estate assets, which could attract investors looking for better yield, according to Fitch Investors Service. Successful bulk sales will allow more banks to concentrate on their core banking services, while reducing their costs of holding nonperforming real estate loans on their balance sheets, said Fitch analysts. Sales at banks with high volumes of nonperforming commercial-related loans also are expected to pick up over the next 12 to 18 months, particularly as many commercial real estate (CRE) loans originated before the financial crisis near maturity, they added. Investors such as hedge funds, high-yield asset managers and other lightly regulated entities seeking higher returns in a low interest-rate environment have caused...
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