Servicing

The Federal Reserve must take steps to improve handling of complex settlements like the one reached with mortgage servicers over improper foreclosures, an internal watchdog said in a report.

Heightened regulatory oversight of servicing rights transfers means servicers must clamp down on processes while investors take stock of their own procedures.

EverBank failed to properly determine mortgagor eligibility for the Federal Housing Administration's preforeclosure sale program, according to an audit report released by the inspector general for HUD.

Commercial real estate lender Walker & Dunlop has agreed to acquire Johnson Capital's loan origination and servicing platform.

Hispanic borrowers have been shut out of the two-year housing recovery more than other groups in California, denying them the chance to rebuild wealth through homeownership.

The DOJ wants the banks it threatens with litigation to admit accountability, pay hefty penalties and takes steps to satisfy the public thirst for payback. But the financial system would be better served if the bulk of regulation was left to the banking agencies.

There are still enough indicators out there that suggest another round of foreclosures is near.

The Consumer Financial Protection Bureau's action against Flagstar Bank on Monday marked a series of firsts for the agency, including the first time it enforced its new mortgage servicing rules and the first time it banned a servicer from servicing new loans until fixes are made.

WASHINGTON — Michigan-based Flagstar Bank will be required to pay $37.5 million in restitution and fines over regulatory allegations it blocked struggling homeowners from receiving foreclosure relief, the Consumer Financial Protection Bureau said Monday.