Equifax, while agreeing to the settlement, denied the charges in a recent filing with the Securities and Exchange Commission: “The company’s participation in the consumer settlement does not constitute an admission by the company of any fault or liability, and the company does not admit fault or liability," the vendors said.
The figures are not adjusted for seasonal factors, and FHA/VA default rates often trend lower in the first quarter. FHA home equity conversion mortgages are not included in the data.
Banks and other lenders typically hire third-party collectors to recoup debt or sell the accounts to debt buyers. There are approximately 9,330 debt collectors/buyers in the U.S., said the bureau.
Mike Fontaine, CFO of Plaza Home Mortgage, said servicers can recognize significant benefits from advance financing. “When you have a Ginnie portfolio, servicing advances can be a rather large cash drain,” he said. “If you have the ability to finance that piece of it, it will provide more liquidity.”
Keep in mind: A handful of senior officials who worked in the bureau’s supervision and enforcement division quit this year, including Assistant Director Christopher D’Angelo and Enforcement Director Kristen Donoghue...
Both these banking giants rely on a mix of retail and correspondent lending to source production, oftentimes acquiring already-funded loans from nonbanks they’re providing warehouse credit to.
“We believe the implementation of state-specific standards offered in the proposal would create consumer uncertainty, add additional costs and produce possible deviations from federal law,” wrote the trade groups.
Citi’s strong showing is likely a harbinger of good news for the residential sector, especially since Citi uses predominantly retail/direct – with some correspondent – to produce loans. In the first quarter, the bank ranked 22nd among all funders...
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