Foreclosures

Browse articles from all of our Newsletters related to Foreclosures.

May 25, 2017 - Inside Mortgage Finance

Industry Groups Push for Supreme Court to Take Up Case Involving ‘Super-Priority’ Liens

A split in court rulings in cases involving “super-priority” liens makes the issue ripe for consideration by the Supreme Court of the United States, according to industry trade groups. Last week, the Mortgage Bankers Association, the American Bankers Association and the U.S. Chamber of Commerce submitted a joint amicus brief to the Supreme Court, stressing that super-priority liens “eviscerate” the traditional standing of mortgages. The court case of interest to the trade groups is...


May 18, 2017 - Inside Mortgage Finance

Trump Administration Needs to Press For Multiple Reforms to FHA Lending, FSR Suggests

The Financial Services Roundtable recently called for enacting comprehensive housing finance reform, including reform of the FHA’s single-family mortgage insurance program while focusing the agency’s mission on first-time and low- and moderate-income borrowers. The FSR’s call came in a detailed response to President Trump’s executive order earlier this year directing the Treasury Department to conduct an assessment of financial regulations. For starters, the trade group urged...


May 18, 2017 - Inside Mortgage Finance

Delinquencies Resume Downward Trend in 1Q17, Slight Uptick in Foreclosure Starts

Mortgage performance improved in the first quarter of 2017, recovering from a somewhat unexpected increase in delinquencies at the end of 2016. The total delinquency rate in the Inside Mortgage Finance Large Servicer Delinquency Index was 4.28 percent as of the end of March, down from 5.05 percent at the end of the previous quarter and improving on the 4.95 percent delinquency rate recorded in March 2016. Among the 32 servicers in the large delinquency index, only two reported...[Includes one data table]


May 12, 2017 - Inside FHA/VA Lending

VA Explains Characteristics of an ‘Egregious Loan,’ Discusses Cases

What is an “egregious” VA mortgage loan? Panelists at last month’s VA Lending Conference in Kansas City, MO, helped shed light on such loans by describing them as flawed and in violation of VA requirements. “But there’s more,” said Greg Nelms, VA chief of loan policy. Unstable income and use of active-duty income when that income will be extinguished within one year could taint a VA loan and make it egregious, said Nelms. High debt-to-income ratio, residual income that is below VA requirements and failure to consider a spouse’s debts or credit in a community-property state also could have an adverse effect on a VA loan, he added. The panel presented several “egregious loan” scenarios involving reviews of several mortgages from 2016 in which lenders were required to sign indemnification agreements. The first example consisted of a VA home loan for $102,047, which closed in ...


May 11, 2017 - Inside Mortgage Finance

Industry Reps Prepare to Comment as CFPB Issues Plan to Assess its 2013 Mortgage Servicing Rules

Mortgage industry officials are gearing up to weigh in once again on the mortgage servicing rules the Consumer Financial Protection Bureau issued back in 2013. Last week, the CFPB released its proposed plan to assess the rules as required by the Dodd-Frank Act. The bureau plans to evaluate how adequately its rule has met four key purposes: responding to borrower requests and complaints in a timely manner; maintaining and providing accurate information; helping borrowers avoid unwarranted or unnecessary costs and fees; and facilitating review for foreclosure avoidance options. The bureau plans...


May 8, 2017 - Inside the CFPB

Bureau Continues to Find Problems With Mortgage Servicing Practices

The CFPB claims that some mortgage servicers are violating the law by failing to provide the required foreclosure protections to struggling homeowners seeking to save their homes, according to the agency's latest supervisory highlights report, released last week. Other issues identified during recent CFPB examinations include premature foreclosure filings, mishandling of escrow accounts, incomplete periodic statements and dual tracking. “Supervision continues to observe serious problems with the loss mitigation process at certain servicers, including at one or more servicers that failed to request from borrowers the additional documents and information they needed to obtain complete loss mitigation applications, only to deny the applications for missing those documents,” the report said. On the escrow front, the CFPB said at least one ...


May 4, 2017 - Inside Mortgage Finance

Supreme Court Decision in Miami Fair-Housing Lawsuits Against Lenders Gives Both Sides Hope

The Supreme Court of the United States this week ruled in favor of Miami in a case involving losses the city claimed were related to “predatory mortgages.” The ultimate impact of the ruling remains unclear, as the lawsuits will proceed in a lower court, potentially fizzling out or leading to a plethora of similar claims. In Bank of America v. City of Miami, BofA and Wells Fargo challenged lawsuits brought under the Fair Housing Act. The city alleged that discriminatory conduct by the banks in their origination of predatory mortgages before the financial crisis led to a disproportionate number of foreclosures and vacancies in majority-minority neighborhoods. Miami said the loans and foreclosures impaired the city’s effort to assure racial integration, diminished its property-tax revenue and increased demand for police, fire and other municipal services. In a 5-3 ruling supported by the Supreme Court’s more liberal-leaning justices, the court determined...


April 28, 2017 - Inside MBS & ABS

Moody’s, Fitch Pummel Ocwen with Downgrades Following Legal Actions by CFPB, State Regulators

Ocwen Financial’s travails continued to worsen this week after rating agencies announced adverse ratings actions amid the servicer’s mounting regulatory and legal problems. On April 24, Moody’s Investors Service placed Ocwen’s servicer assessment on review for a possible downgrade. On April 25, Fitch Ratings revised its previous rosy affirmation of the company’s primary servicer rating and stable outlook to negative. Both firms said the ratings actions were due to the increased regulatory scrutiny on Ocwen’s servicing operations, which could lead to hefty penalties that could pose a threat to the company’s financial stability. On April 20, a consortium of state mortgage regulators filed...


April 28, 2017 - Inside MBS & ABS

Changes Proposed by S&P to Non-Agency MBS Rating Criteria Would Favor Prime Mortgages

S&P Global Ratings proposed changes this week to its criteria for rating non-agency MBS. The changes would provide higher ratings to certain tranches of non-agency MBS backed by new prime mortgages while prompting lower ratings for new issuance backed by seasoned mortgages. The rating service is considering a number of adjustments to foreclosure assumptions, loss severity projections and changes relating to the evaluation of qualitative factors. “The proposed revisions to our methodologies and assumptions are...


April 27, 2017 - Inside Mortgage Finance

Mortgage Delinquency Rates Decline in March to Lowest Level in 11 Years, Black Knight Reports

Total mortgage delinquencies dropped to an 11-year low of 3.62 percent in March, thanks to improving economic metrics, according to Black Knight Financial Services’ first look at March 2017 mortgage data. In particular, overall delinquencies fell 14.1 percent month-over-month, the lowest they have reached since March 2006 and the fourth lowest point since the turn of the century. On a year-over-year basis, total delinquencies declined 11.4 percent. Total non-current inventory, comprised of all loans 30 days or more past due or in active foreclosure, fell below 2.3 million loans, the lowest volume in 11 years, Black Knight analysts found. Observers attributed...


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