A Connecticut appeals court affirmed a trial court’s verdict that was in favor of the Connecticut Department of Banking revoking 1st Alliance Lending’s mortgage license.
The bureau said many homeowners reported that their servicers pushed them to take on new, higher-interest loans instead of keeping their existing mortgage.
The rule mandated under the Economic Growth, Regulatory Relief and Consumer Protection Act received approval from groups representing mortgage lenders and consumer advocates. PACE lenders, meanwhile, have concerns.
A new FHFA working paper examined factors that influence borrowers’ decisions on whether they should pursue forbearance when facing financial distress.