Goldman Sachs has agreed to pay an undisclosed settlement amount to ACA Financial Guaranty Corp. to resolve allegations of fraud related to insurance on a collateralized debt obligation backed by subprime mortgages. Details of the Abacus CDO settlement were not disclosed, although ACA initially sought $120 million in damages. First filed in 2011, ACA’s lawsuit accused Goldman Sachs and hedge fund Paulson & Co. of fraudulently persuading it to guarantee payments on the CDO prior to the financial crisis. ACA alleged...
In case you didn’t know it, the Irvine, CA-based Citadel now services roughly $650 million in nonprime loans. Angel Oak and Deephaven use subservicers…
RE/MAX Holdings is working to place mortgage brokers in real estate brokerage locations using a franchise model that the firm has used to become the top residential home seller. Officials at RE/MAX stress that the Motto Mortgage effort is compliant with stringent regulations regarding the mixing of real estate agents and mortgage offerings. Dave Liniger, CEO of RE/MAX, said many real estate agents and brokerages are eager to work closely with loan originators. “However, compliance remains...
CEO Debra Still of Pulte Mortgage blamed low usage on the fact that Fannie and Freddie use different terminology and eligibility criteria for things like area median income.
PHH officials say the company has improved its servicing operations in recent years and agreed to the consent order “to avoid the distraction and expense of litigation.”
Mortgage lenders and servicers could see a dramatic change in the regulatory environment following the election of Donald Trump as president with a GOP-controlled Congress. During a campaign of many and sometimes conflicting promises, Trump vowed to repeal the Dodd-Frank Act, which would require Congressional action and, if carried out in its entirety, would abolish the Consumer Financial Protection Bureau. Some observers think a more likely outcome is a restructuring of the CFPB itself and curbing of some regulatory and enforcement actions, perhaps with new leadership. Mortgage lending issues were...
PHH Corp. and Ocwen Financial – both large publicly traded nonbank mortgage lenders – released third quarter results suggesting that at least one of them, Ocwen, might have a future. Ocwen, which has been bleeding red ink for roughly two years, posted net third-quarter earnings of $9.4 million, though there were several caveats to its results, including previously announced legal settlements that have yet to be paid. Still, Ocwen continued...
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