The changes the CFPB wants to make to its 2013 mortgage servicing rules under the Real Estate Settlement Procedures Act and the Truth in Lending Act got a mixed reception from the mortgage industry. The proposed rule was issued in mid-December, and the public comment period closed last week. The proposed amendments cover nine primary topics: successors in interest, definition of delinquency, requests for information, force-placed insurance, early intervention, loss mitigation, prompt payment crediting, periodic statements, and small servicer issues. The Independent Community Bankers of America was pleased with the bureau’s proposed amendment to the small servicer definition that will permit a small servicer to service, for a fee, mortgage loans that are seller-financed transactions subject to certain limitations. ...
Credit unions support a CFPB proposal that would let them off the hook for one year when it comes to submitting their credit card agreements to the bureau while the agency works to develop a more streamlined and automated electronic submission system. Other requirements, including card issuers’ obligations to post currently-offered agreements on their own Web sites, would remain unaffected by the proposed rule, which was issued in February. Currently, card issuers are required to send agreements to the bureau manually through e-mail. The CFPB intends to come up with a new system through which card issuers would be able to upload agreements directly to the bureau’s database and eliminate the process of e-mail submissions. Among the supporters was the ...
The CFPB put out a study earlier this month that concluded that arbitration agreements restrict consumers’ relief for disputes with financial service providers by limiting class actions. According to the study, very few consumers individually seek relief through arbitration or the federal courts, while millions of consumers are eligible for relief each year through class action settlements. The report also found that more than 75 percent of consumers surveyed did not know whether they were subject to an arbitration clause in their agreements with their financial service providers. Further, fewer than 7 percent of those covered by arbitration clauses realized that the clauses restricted their ability to sue in court.The CFPB said its review of case data from the ...
Ocwen actually received the highest marks possible across its performance review for 4Q, but Treasury said the servicer’s “moderate” improvement rating was due to a lack of progress in implementing previously identified improvements.
Loan Modification Trial Payment Plans for Forward Mortgages. The Department of Housing and Urban Development has announced requirements for trial plan duration, required signatures, and reporting for trial payment-plan agreements, and the conditions under which FHA deems a TPP to have failed.Lenders must implement the requirements in Mortgagee Letter 2015-07 for all TPPs offered to borrowers on or after June 1, 2015. FHA Publishes Additional Sections of HUD Single-Family Policy Handbook. The FHA has published additional sections for the SF Handbook, including the following: Doing Business with FHA – Lenders and Mortgagees Doing Business with FHA – Other participants in FHA Transactions – Appraisers; Quality Control, Oversight and Compliance – Lenders and Mortgagees; Quality Control Oversight, and Compliance – Other Participants in FHA Transactions – Appraisers ...
While Wall Street professionals spent the run-up to this week’s meeting of the Federal Open Market Committee wondering whether the Fed would lose its “patience” regarding a future increase in interest rates, the FOMC continued its present course on MBS investment. “The committee is maintaining its existing policy of reinvesting principal payments from its holdings of agency debt and agency MBS in agency MBS and of rolling over maturing ...
Interactive Mortgage Advisors is working on several servicing transactions totaling about $20 billion in product. But the receivables are being offered through private negotiation only...
Security issuances backed by FHA and VA loans totaled $267.6 billion in 2014, with several large states accounting for a significant share of FHA/VA originations. An estimated $158.1 billion of FHA-insured loans, including modified loans, were securitized last year, with purchase home loans comprising most of the transactions. Approximately $30.0 billion of FHA refinance loans were securitized as well. The FHA MBS had an average loan-to-value ratio of 92.3 percent and a debt-to-income ratio of 40.1 percent. The average FICO score was 672.3, which was indicative of first-time homebuyers and borrowers with slightly tainted credit. First-ranked California, Texas (#2) and Florida (#3) combined for a total of $48.0 billion, which represented 30.3 percent of FHA loans in Ginnie Mae mortgage-backed securities in 2014. Fourth-ranked New York reported a total of $6.7 billion while ... [ 2 charts]
Half of the loans in the Distressed Asset Stabilization Program have been resolved and a significant percentage of homeowners have avoided foreclosure, according to the latest DASP progress report from the Department of Housing and Urban Development. A review of the FHA single-family loan sale (SFLS) program found that, of the 48.6 percent that have been resolved, 43.5 percent have avoided foreclosure. The anticipated alternative for these borrowers – property conveyance, where their property becomes real estate-owned – would have led to foreclosure, the report said. Specifically, short sales and deeds-in-lieu of foreclosure were the disposition methods employed in foreclosure avoidance. In addition, 16.3 percent of resolved loans were re-performing as of Feb. 6, 2015. This reflects a 49.5 percent change in the re-performing rate reported in the ...
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