Loan Think

Years after the crisis, fundamental problems in default servicing still exist and in order to move forward, servicers must reimagine their processes to better manage overall volume and spikes in demand.

Regardless of recent activity, marketing services agreements can be legal if lenders find the proper formula to follow.

The Department of Housing and Urban Development found recently that a Federal Housing Administration down payment assistance program translated to higher mortgage rates for borrowers.

Regulators have given the merger between CIT Group and OneWest Bank the green light — so long as CIT comes up with a revised Community Reinvestment Act plan. This condition is good news for the low-income communities impacted by the merger and sets a strong precedent for regulators' review of future bank deals.

The government-sponsored enterprises are buying conforming mortgages with as little as 3% down, but the new policy can't improve the housing market by itself.

Lenders thrive with clear communication from the top executive and an operations team offered ample support.

Upgrading communications technology is imperative, but only one way, for mortgage servicers to prepare for an onslaught of consumers accustomed to high-touch, individualized attention.

The methodologies and paths for proactive consumer outreach can vary dramatically depending on multiple risk factors that servicers must have a plan to mitigate.

As new foreign bank regulations push financial institutions to shed risk-weighted assets, companies like Barclays and RBS are reducing their roles in the mortgage-backed securities market. But reduced competition in this sector is bad for liquidity.

Incorporating bill and rental payment data into consumer credit scores would be a boon for underserved Americans. New legislation in Congress could help credit reporting agencies realize this goal.