Ginnie Mae Spokesperson Leaves Agency. Cynthia Adcock, director of communications and congressional relations at Ginnie Mae, will no longer be with the agency effective Sept. 4, 2017. Adcock will assume similar duties and responsibilities as a director with the Federal Housing Finance Agency. Michael Huff will handle media inquiries related to Ginnie Mae and congressional matters. FHA Lenders Settle Alleged Violations of FCA, FHA Requirements. The Department of Housing and Urban Development’s Office of the Inspector General recently announced receipt of $44.3 million from separate settlements with two FHA lenders. The settlements resolve allegations of fraudulent claims and violation of FHA requirements against Financial Freedom of Austin, TX, and Prospect Mortgage of Sherman, Oaks, CA. On May 16, 2017, Financial Freedom, an FHA servicer, agreed to pay the ...

Legal liability in the context of the so-called black hole in the CFPB’s TRID integrated disclosure rule remains a source of much anxiety for mortgage lenders, according to experts such as Rod Alba, senior vice president of mortgage markets, financial management and public policy for the American Bankers Association. “For lenders in general, [the biggest concern] is simply the liability that results from allowing the transaction to be negotiated until the last minute,” he said last week in an interview. “We don’t like telling the consumer, ‘You’re now three business days from closing; we can no longer negotiate and you must go through on this deal.’ That’s not pleasant.” Alba continued: “The consumer may say, ‘Well, no, that chimney has ...

Campaign for Accountability, a self-styled watchdog organization, recently filed a Freedom of Information Act request with the CFPB to find out what actions the agency has taken to hold Clayton Homes and its mortgage lending subsidiary, Vanderbilt Mortgage, accountable for alleged predatory lending practices.Clayton Homes, based in Maryville, TN, is one of the nation’s largest mobile home sellers, and is owned by Warren Buffett’s Berkshire Hathaway. Said Campaign for Accountability Executive Director Daniel Stevens: “Clayton Homes appears to have been preying on some of our most vulnerable citizens. As the company expands its footprint to reach more Americans, it is imperative to know whether the government found any wrongdoing and, if so, what actions were taken.” The watchdog group...

In the age of the CFPB, mortgage servicers have been walking a tightrope, balancing regulatory compliance with borrower satisfaction, sometimes getting stung by an enforcement action. This year, they are falling behind the curve in terms of their customers, according to the results of the 2017 U.S. Primary Mortgage Servicing Satisfaction Study from J.D. Power. “CFPB servicing regulations now in place are resulting in intense scrutiny as well as major fines for some institutions during the first waves of enforcement,” the data, analytics and advisory services provider said. “With other state and federal agencies, such as the Department of Justice and state attorneys generals, also taking actions against mortgage servicers for servicing practices, many experts expect intense regulatory scrutiny to ...

There may be plenty of uncertainty about the direction of the CFPB these days, given that Republicans are calling the shots on Capitol Hill and at the White House, plus the fact that Richard Cordray’s days as director of the bureau are numbered, regardless of when he actually ends up departing. Still, mortgage servicers can continue to expect robust supervision and regulation – and enforcement –if not from the bureau, then from another federal regulator, as well the states, and maybe all of the above, according to Steven Frie and Mark Shannon, top servicer analysts at S&P Global Ratings. “It’s been pretty common knowledge that the CFPB has been very active in regards to regulating the mortgage servicing industry,” Frie said ...

The CFPB recently filed a complaint and a proposed settlement against what’s left of Aequitas Capital Management and related entities, all of which are based in Lake Oswego, OR, accusing the firms of aiding the allegedly predatory lending behavior of Corinthian Colleges, now defunct. The complaint against Aequitas and its affiliates was filed in U.S. District Court, District of Oregon, Portland Division.“The bureau brings this action against Aequitas for its abusive acts and practices in connection with private loans made to students at Corinthian Colleges, which were funded or purchased by Aequitas,” the CFPB said. “By funding these private loans, Aequitas enabled Corinthian to present a façade of compliance with federal laws requiring that a certain portion of a ...

Cordray Takes to the NYT to Defend CFPB Arbitration Rule. CFPB Director Richard Cordray took to the opinion page of The New York Times last week to make a public plea in support of the CFPB’s controversial arbitration rule. Cordray cited claims by opponents of the rule that plaintiffs make out better financially by acting individually instead of acting collectively in a group lawsuit. “This claim is not supported by facts or common sense. Our study contained revealing data on the results of group lawsuits and individual actions,” he said. “We found that group lawsuits get more money back to more people. In five years of group lawsuits, we tallied an average of $220 million paid to 6.8 million consumers ...

Investors in Fannie Mae and Freddie Mac continue to grow weary of the drawn out discovery process in shareholder lawsuits and recently filed another motion in hopes of expediting things. Fairholme Funds attorneys filed a motion last week asking to view about 1,500 government documents in a lawsuit challenging the government’s net-worth sweep of profits at Fannie and Freddie. In the new motion, the Fairholme attorneys asked the Federal Claims Court to use the “quick peek” procedure for some documents dating back to May 2012. These are among the many documents the plaintiffs say the government is still hoping to keep secret under the deliberative process and bank examination privileges.

The Structured Finance Industry Group pushed for trustees of non-agency MBS to increase disclosures to investors as the industry continues to deal with the aftermath of Wells Fargo withholding millions of dollars of funds in vintage deals. In a statement released late last week, the industry group said it has a policy of not engaging in issues involving legacy transactions that may be associated with litigation, especially where such litigation is between various members of SFIG. The Wall Street group issued...

For a firm that’s only been involved in the mortgage industry for a year, Eli Global has already bought a stake in two lending companies, inched its way into the warehouse lending arena – and become a plaintiff in a messy lawsuit that accuses a veteran mortgage banker of fraud. So far – except for the lawsuit filed by Eli Global affiliate CapLoc – the Durham, NC-based financial services company has kept a low profile while turning down repeated requests for interviews ...