The CFPB has at least six active investigations into servicers amid concerns that defaulted borrowers will not get foreclosure relief if their loan is bought and transferred to a new servicer.
Ocwen's founder, Eberly, is required to leave Jan. 16 as a condition of the settlement with New York regulators.
Investor confidence in Ocwen Financial was clearly shaken Monday after New York state regulators forced the firm's founder out as part of a $150 million settlement.
Despite the mounting charge from burgeoning nonbank servicers, three large banks still control the majority of the servicing market.
Despite the opinions of many that low-down-payment mortgages didn't cause the housing crisis, the fact is that these types of loans did contribute mightily to the bubble that burst.
The CFPB's new proposal would require servicers to offer loss mitigation more than once over the life of the loan under certain circumstances before a loan could proceed to foreclosure.
The Consumer Financial Protection Bureau issued a proposal Thursday that would institute new foreclosure protections for consumers after the agency found its previous mortgage rules didn't go far enough.
A report due next week on the Federal Housing Administration's financial health is expected to show that the agency's reserve fund has significantly improved over the past year.
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