A day after the news broke that W.J. Bradley Mortgage has shut its doors, competition is heating up for some of its top loan officer and executive talent...
HUD’s Single Family Policy Handbook authorizes lenders to order testing or remediation to ensure that the property’s public-water supply has acceptable levels of contaminants.
One executive who’s involved with the working group said the new guidance from the due diligence firms will help the rating agencies identify "material" risk...
With the Consumer Financial Protection Bureau declining to provide any more formal guidance on legal liability for secondary market players when originators make errors in TRID mortgage disclosures, a group of due diligence firms is moving ahead with their own clarifications. High-level sources familiar with the matter, and who spoke to Inside MBS & ABS under the condition of anonymity, said the forthcoming clarifications have been vetted by legal counsel and are almost ready for viewing. Several top third-party review/due diligence firms are involved in the effort, including Clayton Holdings and Opus. All the major rating agencies are involved as well. “We’re working to calibrate our methodology, to bring it in line with the spirit of the CFPB letter,” said ...
In another legacy residential MBS legal action, the California Public Employees’ Retirement System this week reached a record $130 million settlement with Moody’s Investors Service over the ratings service’s allegedly erroneous ratings of AAA-rated structured investment vehicles in the run-up to the financial crisis. Back in 2009, CalPERS sued Moody’s – along with Standard & Poor’s and Fitch Ratings – after the pension fund claimed massive losses from investments in three structured investment vehicles that depended on the liquidity of assets that proved to be illiquid, such as subprime MBS, collateralized debt obligations and other ABS. In the lawsuit, CalPERS accused Moody’s of making “negligent misrepresentations” by assigning its highest credit rating to the investments. This caused significant losses as the market ...
After much discussion over the past two years, the Financial Industry Regulatory Authority put out a request for comment last week regarding its proposed amendments to shorten the settlement cycle for U.S. secondary market transactions from three business days to two business days by late 2017. Industry representatives said a shorter, two-day settlement timeframe will promote financial stability and significantly mitigate risks to the financial system. FINRA seeks specific input regarding the direct or indirect impacts that the change may have on investors. The last time the settlement cycle was shortened was in 1995, when it went from five business days after the trade date to the current three days. Since then, the Securities and Exchange Commission and financial services ...
The pessimistic pricing in the secondary market for jumbo mortgage-backed securities with exposure to the oil industry might be unwarranted, according to Standard & Poor’s. The rating service completed a stress test on the 59 jumbo MBS issued in 2012 and beyond. “Assuming the entire oil-sector workforce in three major oil-producing states defaults on their mortgages, even under extreme economic stress, the incremental collateral pool losses ... [Includes three briefs]
Mortgage M&A historians might recall that last decade, before the financial crisis struck, Countrywide Financial Corp. was in serious talks to buy PHH’s mortgage business...
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