A U.S. bankruptcy fudge slapped Bank of America with $45.0 million in punitive damages last week for its handling of a mortgage foreclosure. “Franz Kafka lives,” Judge Christopher Klein wrote in his opinion, citing the author known for writing about complex or illogical situations. “This case reveals that he works at Bank of America.” The lawsuit, Sundquist v. BofA, centers on a jumbo mortgage originated in 2008 by a broker and acquired by Countrywide Home Loans ...
Ocwen Financial announced that it signed an agreement with the New York State Department of Financial Services this week to terminate the state regulator’s third-party operations monitor at Ocwen on April 14. Ocwen said the agreement provides a path for the nonbank to receive approval from the NYDFS to resume acquiring mortgage servicing rights. The Structured Finance Industry Group is preparing the next phase of its effort to revive the non-agency ... [Includes two briefs]
FHA-insured jumbo lending fell slightly in the fourth quarter of 2016 although year-over-year results were a lot better. Production of conforming-jumbo purchase and refinance loans insured by the FHA slipped 0.9 percent in the fourth quarter, a slight bump on the way to an annual jumbo origination total of $26.9billion. Year-over-year, FHA jumbo production was up 5.6 percent from 2015. Conforming-jumbo loans represented 9.8 percent of FHA loans securitized last year, according to data compiled by affiliated newsletter Inside Mortgage Finance. Purchase mortgages comprised 64.9 percent of jumbo loans insured by FHA in 2016 and 98.7 percent were fixed-rate loans. Nonbanks comprised the top five FHA jumbo lenders. Wells Fargo, which closed the year with $423.8 million in FHA jumbo originations, was in sixth place. Quicken Loans led the field with $802.5 million of ... [ Charts ]
Wells Fargo, Deutsche Bank and the Royal Bank of Scotland have agreed to pay investors $165 million to resolve allegations of misrepresenting the quality of mortgage loans underlying securities issued by now-defunct subprime lender NovaStar Mortgage. The agreement was announced last week subject to approval by Judge Deborah Batts of the U.S. District Court for the Second District of New York, according to a report by Reuters. At issue is $7.7 billion in residential MBS delivered into various trusts and sold to investors, including pension funds, prior to the housing crash. A multi-employer union pension plan led by the New Jersey Carpenters Health Fund filed...
Esaki and White propose allowing issuers to choose any number of rating services to submit credit support levels for a particular MBS or ABS, paying a bid-preparation fee for each estimate.
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