Last week, the Federal Reserve Board released action plans that Bank of America, Citigroup, EverBank, JPMorgan Chase, MetLife, PNC, SunTrust, US Bancorp and Wells Fargo developed and will have to implement per the consent orders issued last April in order to correct alleged deficiencies in residential mortgage loan servicing and foreclosure procedures. The Fed also released engagement letters between the institutions and the independent consultants they retained to review foreclosures that were in process in 2009 and 2010...

Consumer advocates may be railing against the $25 billion settlement the five largest mortgage servicers struck recently with 49 state attorneys general, but the participating banks are still vulnerable on a number of fronts, according to a top analyst at Moody’s Investors Service. On the one hand, “The settlement will have little to no financial effect on the banks and will remove some of the uncertainty surrounding mortgage servicing,” said Joseph Pucella, vice president and senior…

Federal Housing Finance Agency Special Advisor Mario Ugoletti told attendees at the Mortgage Bankers Association’s National Mortgage Servicing Conference & Expo in Orlando that changes to servicing compensation practices have not been pushed to the backburner. However, he did concede that, in light of uncertainties in the marketplace and the legislative and regulatory environment, changes would not be promulgated in the next quarter or two. Any revisions to compensation practices ought to result in enhanced competition in mortgage servicing and be capable of replication ...

Acquisitions boosted Ocwen Financial to the top subprime servicer spot at the end of 2011, according to a new ranking and analysis by Inside Nonconforming Markets. However, that was not the only significant movement among the top five subprime servicers, as American Home Mortgage Servicing changed more than its name. Ocwen serviced an $84.73 billion subprime portfolio at the end of 2011, a whopping 49.9 percent increase compared with the end of 2010. During that time, the amount of subprime mortgages outstanding decreased by 9.2 percent to an estimated $545.0 billion ... [Includes one data chart]

Santa Ana, CA-based CoreLogic this week unveiled DefaultView, a new, cloud-based, end-to-end servicing product that’s designed to streamline the way mortgage servicers handle loans through every stage of the default lifecycle. The new product utilizes nine modules that interconnect within its architecture to help provide a more efficient and transparent default servicing operation. DefaultView employs a master-loan architecture that provides the client with a singular view of a loan. “This design enables end users across a default enterprise to easily see a complete transaction history including workflow...

Most major servicers reported increases in mortgage delinquency rates during the fourth quarter of 2011, but some industry data suggest seasonal factors influenced the increase. According to the Inside Mortgage Finance Large Servicer Delinquency Index, 10.88 percent of loans serviced by 19 major companies were in some stage of default at the end of 2011. That was up from 10.70 percent at the end of September and marked the fourth consecutive increase in the index. The biggest increase was in the serious default category, loans 90 days or more past due but not yet in foreclosure. Some 3.27...(Includes one data chart)

A new report detailing servicers’ compliance with foreclosure laws in San Francisco found that the mortgage industry has systematically violated state and municipal code. While California allows for both judicial and non-judicial foreclosures, the majority of servicers use the “power of sale” clause from the trust deed to choose a non-judicial foreclosure, wherein little oversight takes place. Prepared by Aequitas Compliance Solutions, the report was commissioned by San Francisco’s Office of the Assessor-Recorder. Aequitas compiled and reviewed 382 residential mortgage foreclosures, 16 percent of the...

The long-anticipated mortgage servicing settlement between the federal government, 49 state attorneys general and the nation's largest servicers isn’t just a big deal in terms of dollar amount and legal liability. It’s a critical shift in the legal and regulatory enforcement paradigm that will alter the landscape for years to come. “[T]he settlement is a strategic change in the legal and reputational risk landscape, and not just for what’s left of mortgage banking,” explained Karen Shaw Petrou, a managing partner at Federal Financial Analytics, a Washington, DC, think tank...

It looks like 2012 is turning out to be the year of the settlement between top mortgage lender/servicers and federal and state government entities. Bank of America subsidiary BAC Home Loans Servicing LP – which did business as Countrywide Home Loans Servicing LP in a previous incarnation – recently agreed to reverse or refund $36 million in fees to settle charges by the Federal Trade Commission that it overcharged struggling homeowners, in violation of an earlier agreement with the government. BAC Home Loans Servicing has already reversed or refunded $28 million worth of ...

The Consumer Financial Protection Bureau released a draft monthly mortgage statement last week that the agency hopes will make it easier for homeowners to understand their mortgage and get a better handle on costs and fees. Compliance by mortgage servicers and creditors might get a boost in the process. The model document that was issued includes the principal, the current interest rate, the next date on which the interest rate may change, a description of late payment fees and a telephone number and email address that may be used to contact the servicer...