Two of the big three credit reporting firms saw consumer complaints about their practices leap by triple digits in the 12-month period ending Dec. 31, 2014, according to an Inside the CFPB analysis of bureau data. The leap comes despite a double-digit drop in gripes directed towards all three firms during the fourth quarter. As noted previously, given how relatively recent the bureau’s data collection efforts in this space have been, it would be premature to definitively conclude what may be driving these increases. However, to date, it appears there is a strong seasonal surge in complaints in the first quarter of the year – perhaps because of issues or problems related to Christmas holiday shopping. For instance, in the first ...
The top complaints consumers have about reverse mortgages are the inability to change their loan terms, servicer runarounds and foreclosure problems, according to a new report from the CFPB. More specifically, the top complaint involves distress about the inability to add new borrowers to an existing loan. “Reverse mortgages prohibit spouses, heirs and dependents from taking over the loan. This is because loan amounts are, in part, calculated using a borrower’s age and the loan repayment is triggered when the last borrower moves out or dies,” the bureau said. “This can be a problem for surviving spouses and children. Family members complained to the CFPB about not being able to be added to the loan so they could keep the ...
In an unannounced development late last week, the CFPB granted an industry request to tweak its pending integrated disclosure rule by issuing a final rule allowing a three-business-day window for lenders to revise a loan estimate form. This is longer than the one-day window that was proposed back in October and the same-day requirement included in the original mortgage disclosure rule under the Truth in Lending Act and the Real Estate Settlement Procedures Act. The bureau received comments from industry trade associations, creditors, technology vendors, and other industry representatives addressing the proposed change. All comments supported the proposal to relax the timing requirement, but most advocated extending it to three business days. Most commenters argued that a next-business-day requirement presents ...
Reining in the cost of compliance with the CFPB’s various rulemakings was on the minds and lips of regulators and industry representatives alike at the recent ABS Vegas conference sponsored by the Structured Finance Industry Group and Information Management Network. Thomas Glanfield, president and CEO of Boston Portfolio Advisors, a consulting firm that works with mortgage lenders and servicers, was among those who raised concerns about the costs associated with compliance. “The cost to 99 percent of the industry has been noticeably higher than expected, especially when you’re trying to get one percent of the industry up to standards,” he said. Glanfield also noted there has been a lack of clarity on some rules from the CFPB, which he said ...
Despite the comparatively small staff of examiners at the CFPB – close to 500 – Deputy Director Steven Antonakes said in a speech last week that his staff is an “x-factor,” in that the bureau works closely with other state and federal exam teams to leverage its resources. In military terms, that’s known as a force multiplier. “The bureau does not have a safety and soundness mandate. Nevertheless, we very much care about the financial health of banks and nonbanks,” Antonakes said. “As a veteran of two banking crises, I can tell you unequivocally that, in my view, consumer protection is not in conflict with safety and soundness. Consumers benefit from a healthy, competitive, and diversified financial services system through greater access ...
The CFPB brought the hammer down on a handful of nonbank mortgage companies in the last two weeks over advertising practices the bureau asserts are deceptive and misleading because, in three of the cases, the lenders allegedly implied U.S. government approval of their products or otherwise suggested the companies were agencies of the federal government when in point of fact they were not. The actions are a confirmation to the industry that lenders don’t have to be big players with deep pockets or even depository institutions to earn the bureau’s wrath. They are also a big wake-up call in terms of compliance. “For decades, many lenders which have used direct mail to market to consumers have emphasized the government-insured nature ...
CashCall recently started offering loans that do not meet qualified mortgage standards. The lender’s “NQM” program targets borrowers who cannot qualify for agency financing. The minimum credit score is 680 and CashCall is flexible in determining ability to repay, including the use of cash flow from investment accounts. Home Loan Servicing Solutions announced this week that no non-agency mortgage-backed security investors have ... [Includes two briefs]
Issuer Performance Tool. Ginnie Mae expects to release its long-anticipated Issuer Operational Performance Profile system on or about Feb. 24. The IOPP system features a scorecard to measure an issuer’s compliance with Ginnie Mae standards and to compare its performance with those of its peers.Final Tier Ranking Scores. The FHA has issued a reminder that under the Tier Ranking System II (TRSII) Servicer narrative, all scored servicers – including those that have not opted out – may have their names and performance scores published on the Department of Housing and Urban Development’s Tier Ranking System page on HUD.gov at the end of each calendar year. The information is now available for review.TRSII scores servicer compliance with HUD/FHA delinquent servicing guidelines and requirements in the areas of delinquency intervention, loss mitigation based on ...
Ginnie Mae servicing volume gained a mere percentage point in the fourth quarter of 2014 from the previous quarter, capping a productive year for servicers of government-backed mortgages, according to Inside FHA Lending’s analysis of agency data. Servicing volume rose by only 1.0 percent to $1.5 trillion during the last three months of 2014 from $1.4 trillion in unpaid principal balance in the first quarter, and increased 4.0 percent year over year. Four out of the top five Ginnie Mae servicers were banks, of which three experienced declines in their servicing portfolios on quarterly and year-over-year bases. The leader of the pack, Wells Fargo, closed out the year with $416.0 billion in Ginnie Mae servicing and capturing 27.8 percent of the market. Its servicing portfolio fell ... [ 1 chart ]
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