The Federal Housing Finance Agency this week announced a limited principal reduction option for certain nonperforming, underwater borrowers with Fannie Mae or Freddie Mac home mortgages. The agency characterized the program as the “final crisis-era modification program [and] a last chance for seriously delinquent underwater borrowers to avoid foreclosure.” The program is limited...
Federal and state scrutiny of lender-placed insurance has turned into a compliance nightmare for lender/servicers in recent years as legal scrutiny of industry practices intensified, resulting in regulatory actions and lawsuits, according to a new analysis by BuckleySandler. The LPI industry and its practices came under close scrutiny following the mortgage crisis and has continued ever since. It began with the filing of a host of lawsuits by the plaintiffs’ bar across the...
Although there hasn’t been a lot of good news on PHH of late, one analyst we spoke with noted a positive: “They still have plenty of cash on their books…”
With steady growth over the past four years, nonbank mortgage servicers should have more regulatory oversight, according to a recently released study by the U.S. Government Accountability Office. Several agencies, including the Conference of State Bank Supervisors and the Federal Housing Finance Agency, agreed with that recommendation. The share of home mortgages serviced by nonbanks tripled from 2012 to midyear 2015, growing from approximately 6.8 percent to 24.2 percent, the GAO said. The GAO recommended...
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