Compliance & Regulation

Two Florida men have been sentenced to serve seven years in federal prison for swindling more than $4 million from borrowers who were behind on their mortgages.

The Consumer Financial Protection Bureau's crackdown on mortgage servicers' operations will increase the pressure on lenders to improve their processes, paperwork and communications with borrowers. National Mortgage News journalists discuss how both banks and nonbank servicers can get ahead of the new regulatory scrutiny.

Lenders must give these to consumers who apply for home equity lines of credit and adjustable rate mortgages.

After eight straight profitable quarters and record annual income, Fannie Mae's dividend payments to the U.S. Treasury now exceed the bailout funds it's received since 2008.

Having all the information about a borrower’s loan status readily available and being able to prove a servicer made an effort to reach out to a distressed homeowner are critical.

The answer will depend on how Washington politics play out, how much balance sheet relief private securitization really provides to sellers, and how much borrowers and investors ultimately demand it.

Ocwen Financial raised less than underwriters expected by selling bonds tied to fees from managing government-backed loans as the mortgage servicer’s shares fell to the lowest since December 2012.

The Mortgage Bankers Association is trying "to get the regulators to just be aware of where one rule conflicts with another," says the trade group's president, David Stevens.

Lower volumes and increased regulation are leading more lenders to consider outsourcing. But the savings and compliance improvements must outweigh increased liability for contractors and a rise in offshore prices.

Once written off as an endangered species, nonbank home lenders are making a comeback in the third-party origination businesses abandoned by banks since the financial crisis.