Investors in non-agency mortgage-backed securities continue to grapple with a decision by a trustee to withhold millions of dollars from investors in vintage deals. Industry analysts suggest that post-crisis non-agency MBS include protections against such withholding. At the end of June, Wells Fargo withheld $94.3 million in funds from investors in 20 non-agency MBS that were subject to clean-up calls by New Residential Investment. The deals in question are the subject of a lawsuit ...
Ocwen Financial reported a net loss of $44.44 million for the second quarter of 2017, with legal issues accounting for a large portion of the loss. The nonbank also agreed on terms with New Residential Investment to transfer mortgage servicing rights on non-agency mortgages. Ocwen had a $33.60 million expense in the quarter tied to legal settlements. “We settled additional legacy litigation matters further reducing future uncertainty,” said Ron Faris, the company’s president and CEO ...
JPMorgan Chase is preparing to issue another large prime non-agency mortgage-backed security, according to documents filed this week with the Securities and Exchange Commission. It will be the third prime non-agency MBS from the bank this year. Moody’s Investors Service this week affirmed its assessment of First Republic Bank as a “strong” originator of jumbo mortgages. “First Republic distinguishes itself from other originators in its consistency ... [Includes two briefs]
A property management contractor for the Department of Housing and Urban Development has agreed to pay $4.3 million to resolve allegations that it billed the agency for FHA-related work it did not perform in violation of the federal False Claims Act. Cityside Management Corp. of Manchester, NH, allegedly failed to inspect the work of third-party vendors that it hired to perform termite inspections, treatments and repairs on repossessed houses in HUD’s real estate-owned inventory, as required by its contract with HUD. HUD’s inspector general investigated the case and referred it to the Department of Justice. Following the financial crisis, HUD held title to a large number of foreclosed homes acquired by borrowers with FHA financing. HUD contracted with various field service managers, including Cityside, to prepare the REO properties for resale. According to the Office of the U.S. Attorney for the ...
Not counting the new investment from Gatehouse, CALPCAP has raised $225 million from investors since its inception 10 years ago. Company principal Mark Mozilo told IMFnews the firm is continuing to hire as it builds out a national lending platform.
For years, big banks have delivered nearly all of their conforming mortgage production to the government-sponsored enterprises and retained their jumbo mortgages in portfolio. But some big banks have changed tactics, exploring differing execution options for their originations. Paul Donofrio, CFO of Bank of America, said the bank retained about 90.0 percent of its mortgage production on balance sheet in the second quarter of 2017. BofA had $18.0 billion in originations during the quarter, including first mortgages and home-equity loans. The loans retained...
As the Consumer Financial Protection Bureau prepares to begin assessing its ability-to-repay/qualified mortgage rule, national representatives of the mortgage industry and other financial services participants this week urged the regulator to deal with what’s known as the “GSE patch.” The patch provides a temporary safe harbor for mortgages eligible to be sold to the government-sponsored enterprises that have debt-to-income ratios that exceed 43 percent, the maximum allowed under the ATR rule. The Housing Policy Council of the Financial Services Roundtable noted...
Ocwen originated $699.6 million in the second quarter, with a near doubling of retail originations unable to fully offset the wind-down in correspondent production…
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