An auction of Ditech Financial is scheduled for the end of May. At stake is not only the company’s future — and the jobs of roughly 2,700 full-time employees — but $187.2 billion in mortgage servicing rights. If bidders fail to show up, Ch. 7 will likely be the next step.
The bureau has proposed raising the coverage threshold for smaller lenders under the Home Mortgage Disclosure Act. Separately, it has also sought input on whether to make changes to the required data fields in a separate notice.
Ditech is about to lose a huge subservicing contract that it has with New Residential Investment Corp. A handful of subservicing vendors are considered finalists to replace Ditech, including market leader Cenlar and the number-three ranked LoanCare.
It appears that RoundPoint Mortgage is once again on the auction block. This time around, it looks as though the $90.5 billion residential servicer will be sold to top-ranked Freedom Mortgage, Stan Middleman's shop. But it's not a done deal, sources say, at least not yet.
Zillow failed to win an early dismissal of a suit alleging its co-marketing program violated RESPA. Separately, a group of lenders including Bank of America will face revived kickback claims under RESPA.