Servicing

A founding executive of the upstart company is leaving his post as executive vice president.

The lawsuit claims the bank failed to maintain and market foreclosed homes in minority neighborhoods in Chicago, Memphis and Washington, in violation of the Fair Housing Act.

Jumbo mortgages currently are yielding less than agency loans, and there are other anomalies you can see in the business if you look closely.

By now, every servicer appreciates the Consumer Financial Protection Bureau's single-point-of-contact expectations and the importance of using this staffing model to manage distressed borrowers. However, in order to outperform, servicers must go beyond SPOC and develop a “case ownership” perspective that more closely links all the people involved in servicing a borrower’s loan.

"We are seeing less interest from institutional buyers" of foreclosed properties, says Fannie chief executive Timothy Mayopoulos.

The ability to repay rule states that a lender "shall not make a mortgage loan unless the creditor makes a reasonable and good faith determination at or before consummation that the consumer will have a reasonable ability to repay the loan according to its terms."

Mortgage servicing has long been a scale business, but rising compliance costs are now threatening the survival of smaller operations that lack efficient systems or staff expertise, industry experts say.

The loans have better-than-average credit and home equity metrics, according to Standard & Poor's. The deal lacks fraud-related representations and warranties, but all loans are performing, DBRS finds.

It's clear regulation has replaced credit risk as the industry's top worry. Here are some suggestions for dealing with the new environment from attendees at this week's MBA servicing conference.

One of the first court decisions related to new Dodd-Frank servicing regulations finds allegedly unfair loss mitigation and dual track foreclosure proceedings can be privately enforced, but to a limited extent.