Servicing

Clinton Group Inc., an investment manager which says it is one of the largest shareholders in Radian Group Inc., is calling on the Philadelphia-based private mortgage insurer to put itself up for sale.

A bill was introduced in Congress requesting that the Federal Housing Finance Agency cease its plan to sell Fannie Mae-owned foreclosed properties in California to large investors.

Nearly 165,000 borrowers have filed requests for reviews on how their servicer treated them in foreclosure—to see if they are entitled to damages—according to new figures released by the OCC.

Frederic Gladle pleaded guilty in January to one count of bankruptcy fraud and one count of aggravated identity theft for charging distressed homeowners fees in exchange for fraudulently delaying foreclosure sales.

It seems clear that changes made to the HARP program late last year have spurred a strong wave of usage that the industry didn’t anticipate. It doesn’t matter, of course: mortgage bankers are now writing new HARP loans left and right and competition is picking up thanks to Fannie Mae and Freddie Mac upgrading their AU systems.

Documenting and verifying a borrower’s income is one of the most basic tasks for an underwriter. While this appears to be relatively simple, validating income has become increasingly complex and susceptible to borrower fraud.

New York's Department of Financial Services hammered banks over their relationships with force-placed insurers in a Friday hearing, challenging JPMorgan Chase officials on lucrative reinsurance arrangements that the Department suggested are tantamount to kickbacks.

Competition is heating up among banks in the government's revised Home Affordable Refinance Program, which has helped spark a refi boom and contributed to strong mortgage profits at most banks.

The National Flood Insurance Program is due to expire at the end of this month and the Senate still can’t seem to find a way to pass a short-term extension or move ahead with a comprehensive reform bill that re-authorizes the program for five years.

You remember the HARP program, don’t you? Originally, the idea was to refinance current but high LTV Fannie Mae/Freddie Mac borrowers into new, lower-rate loans—provided they were current. Home values (and lack of equity) reeked havoc on the concept so Uncle Sam took the LTV girdle off.