Will TRID Errors Crimp Earnings? Market observers have been hearing reports that TRID errors and closing delays definitely will be affecting first quarter 2016 earnings, at least for certain nonbanks. The big test for nonbank mortgage stocks is expected to come later this month when PHH Corp., the parent of PHH Mortgage, the nation’s ninth largest servicer, reports 4Q15 results. PHH, which is battling the CFPB over RESPA issues, also has been smacked around by servicing write-downs. It likely got some relief on that score in 4Q15. Stay tuned... CFPB Tries to Clear the TRID Air on Construction Loans. Not only has the CFPB’s TRID rule delayed closings in the conventional market, but it’s being reported that the regulation has ...
Wells Fargo Settles with FHA for a Record $1.2 Billion. Wells Fargo, the largest player in the Ginnie Mae market, last week agreed to pay the Department of Justice and Department of Housing and Urban Development $1.2 billion to settle FHA underwriting claims. In a filing with the Securities and Exchange Commission, Wells noted that the agreement “resolves certain civil claims that the federal government had pending” against the lender tied to FHA lending from 2001 to 2010. But it also covers “other potential civil claims relating” to the megabank’s government production in other time periods as well. The megabank, which also is the nation’s largest overall home lender and servicer, saw the settlement coming and booked an additional “legal ...
TRID Webinar to Focus on Construction Lending Issues. The Federal Reserve next month plans to host officials from the CFPB to present a webinar on questions related to the bureau’s integrated disclosure rule in the context of construction lending. The event is to be held Tuesday, March 1, 2016, from 2 p.m. to 3 p.m. Eastern time. Those interested in viewing the live event may register online at https://www.webcaster4 .com/Webcast/Page/577/13246. Additional information and resources related to the TRID rule may be accessed at the CFPB’s website. CFPB the Target of House Republicans Again This Week. The House Financial Services Committee’s Subcommittee on Financial Institutions and Consumer Credit plans to examine the CFPB’s “assault on access to credit and trampling of ...
Legacy RMBS-related legal action continued this week in both Washington, DC, and in New York City as the fallout from the financial crisis continues. In the nation’s capital, Morgan Stanley agreed to a second settlement with the Federal Deposit Insurance Corp., this time for $62.95 million, to resolve RMBS-related claims stemming from the failure of three financial institutions in the wake of the collapse of the mortgage market. The institutions are...
Colonial National Mortgage was a beta site for the IDR and Allen Maulsby, executive vice president of the bank, said the IDR process is very “legalistic…”
Fannie Mae, Freddie Mac and Ginnie Mae produced a combined $88.96 billion of single-family MBS in January, a modest 1.4 percent decline from December, according to a new ranking and analysis by Inside MBS & ABS. Ginnie production was actually up 7.2 percent from the previous month, while both the government-sponsored enterprises posted declines in new issuance. January’s agency MBS production included...[Includes two data tables]
A federal appeals court in Denver unanimously affirmed a lower court ruling that a claim of damage related to an originator/seller’s misrepresentation accrues when the loan is sold. Ruling in six cases involving plaintiffs Lehman Brothers Holdings and Aurora Commercial Corp. versus Universal American Mortgage Co. and Standard Pacific Mortgage, the Tenth Circuit Court of Appeals rejected plaintiffs’ contentions that their claims were really “indemnification” claims that did not accrue until they bought the loans from Fannie Mae and Freddie Mac. The overarching issue in this complicated case is...
Paul Hindman, a consultant at Grid Financial Services, had this to stay about the deal: “The more important question is what other mortgage-related companies are on Computershare’s shopping list….”
The case of Fairholme Fund v. The United States will continue to linger in the courts as the battle for getting the government to release the bulk of the documents pertaining to the preferred stock purchase agreements between the Federal Housing Finance Agency and the Treasury plays out with a motion filed this week. “We are now in a struggle with the defendants, both the Department of Treasury and FHFA, over claims of the deliberative process privilege they sought to keep from having to produce thousands and thousands of documents, even in redacted form,” Charles Cooper, attorney with Cooper & Kirk, the law firm representing the shareholder plaintiffs, told Inside The GSEs.
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