Risk Management

"Banks and servicers are recognizing that homeowners need to be taken seriously," says plaintiff's attorney Stephen Foondos.
PHH is appealing one of the largest judgments ever awarded in a mortgage case. The dispute encapsulates many of the problems that have plagued the servicing industry in recent years.
Image: Bloomberg
Morgan Stanley is returning to the jumbo residential mortgage-backed securities market for the first-time since the housing crisis. The originator is well-known, but the loans are unusual and the geographic concentration is high.

Image: Thinkstock
By obtaining a third-party opinion that provides a reasoned analysis supporting borrowers' ability to repay, a lender places itself in a substantially stronger position with respect to subsequent ATR claims.

Homebuilders are looking for the FHFA to ease credit standards on Fannie Mae and Freddie Mac mortgages to help improve new home sales.
Builders have noticed some easing of mortgage credit standards recently, but not enough to make a meaningful difference on the housing recovery.

The mortgage life support provided by the federal government since the crash is ebbing. It will be interesting to see if the industry can breathe on its own now.

Last month, BMO Harris Bank changed policies on auto lending to pay a flat percentage of the loan amount to auto dealers making loans (sound familiar?).
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