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Moody's Investors Service downgraded two servicer ratings for Ocwen Loan Servicing, reflecting additional scrutiny by regulators and concerns about the nonbank mortgage servicer's ability to ensure timely payments to bondholders.
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To this day, servicers are still stunned by a speech given several months ago by Deputy CFPB Director Steven Antonakes in which he declared that "business as usual has ended in mortgage servicing."
A bulletin from the Consumer Financial Protection Bureau outlining new policies for mortgage servicing transfers has the industry on alert for another possible round of rulemaking coming down the pike.
PROGRESS:
President Obama announced an initiative Tuesday with several large banks and mortgage servicers designed to make it easier for members of the military and their families to lower their mortgage payments.
New rules are illuminating a once-shadowy market where servicers can be quick to modify loans and may have few qualms about principal reduction. Discounts or equity make such flexibility possible.
SIGNIFICANCE:
For Moynihan: Time to Look for Growth
Brian Moynihan is generally praised for taking the bank to this point, but now comes the hard part: getting B of A to grow again.

For the Industry: Brace for More FIRREA Claims
Bank of America's accord leaves questions about issues such as consumers' tax liability and other banks' legal exposure.
Image: Bloomberg News
The Securities and Exchange Commission is preparing to serve Ocwen Financial Corp. with its second subpoena in as many months, adding to the already mounting regulatory pressure facing the country's largest nonbank servicer.
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