The whistleblower who gained fame and a lot of money from suing major banks for “robo-signing” and other improper mortgage servicing practices has filed an amended lawsuit accusing 22 companies of defrauding the Department of Housing and Urban Development of billions of dollars in false FHA claims. Lynn Szymoniak, whose 2011 interview on “60 Minutes” blew the lid off improper servicing practices at some major banks, filed a qui tam, or whistleblower, lawsuit in the U.S. District Court of South Carolina last week alleging violations of the federal False Claims Act and state false claims statutes. Defendants include CitiMortgage, Wells Fargo Bank, Bank of America, Deutsche Bank, HSBC USA, JPMorgan Chase and U.S. Bank, as well as servicers, trustees, custodians and title companies. The lawsuit seeks...
The idea of expanding the Home Affordable Refinance Program may never die, but comments this week show the Obama administration has little interest in reviving it. During a question-and-answer event this week sponsored by Politico, Department of Housing and Urban Development Secretary Shaun Donovan made it clear that HUD will not push for an expansion of HARP. While more could be done for non-agency borrowers, he said that would require legislation. “I think we should continue to look at everything we are doing in marketing it … but I think this is something we ought to continue to look at on the legislative front,” said Donovan. An industry lobbyist said...
Future changes to Home Mortgage Disclosure Act regulations may shed more light on how lenders adapt to the new ability-to-repay rule, as well as assessing the role of credit history and payment burden in the lending process and mortgage pricing. The Consumer Financial Protection Bureau late last week took the opening steps in overhauling HMDA reporting requirements under provisions included in the Dodd-Frank Act. Among the changes on the table are disclosing the loan term, total points and fees, the length of any teaser or introductory rate, and the applicant or borrower’s age and credit score. Also, the CFPB is...
Green Tree Loan Servicing is the latest lender to turn away mortgage brokers, a move that in years past might create pangs of anxiety in the industry. But brokers have seen this movie before – many times – and they appear to be just fine with the latest news. “I know companies are still getting out, but we’re also seeing a number of companies stepping up to the plate,” said Don Frommeyer, senior vice president of Amtrust Mortgage Funding. Asked whether there are fewer options for brokers these days, he said...
Since Mel Watt was sworn into a five-year term as Federal Housing Finance Agency director on January 6, the former North Carolina Congressman has made no public appearances or policy statements except for canned comments attributed to him in routine FHFA press releases.
The FHFA will show the MI standards to state insurance regulators first, but only if they agree to sign a “non-disclosure” agreement with the FHFA or the government-sponsored enterprises regarding the content they see.
Among the changes on the table are disclosing the loan term, total points and fees, the length of any teaser or introductory rate, and the applicant or borrower’s age and credit score.
New York regulator Lawsky raised concerns about the servicing cost-savings long touted by Ocwen, which are achieved via technology and employees largely located outside of the U.S.
The FHFA permitted Fannie Mae to continue without the ability to assess repurchase late fees because the GSE claimed the cost of setting up such a program could cost $5.4 million
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