Servicing

Wells Fargo's origination business has been operating at full steam, keeping the company’s mortgage servicing assets well above a cap proposed under Basel III. A new servicer compensation system could resolve the issue, but something has to give.

The Securities and Exchange Commission has accused Wells Fargo & Co. (WFC) of failing to produce documents relating to an investigation of the bank's mortgage-backed securities. Wells called the SEC's subpoena enforcement action "inappropriate and unwarranted."

The Federal Housing Finance Agency has a "healthy skepticism" about whether its REO bulk sale initiative will work, according to Meg Burns who's in charge of the sale.

Whether it is due to the weaker U.S. dollar, the large foreclosure inventory for sale, more favorable economic expectations going forward, or all of the above, Canadians are emerging as the largest group of foreigners purchasing residential property in U.S. Sun Belt states. And they do not mind buying foreclosures.

The government-owned Ally Financial sold $250 million of legacy mortgages last year, using the whole loan securitization market, according to a recent filing with the Securities and Exchange Commission.

In case you missed the story on the National Mortgage News website, here's a headline for you: Some firms have the ability to make $10,000 per loan on HARP 2.0 loans. A nice chunk of that profit estimate is tied to secondary market pricing.

Foreclosure law firm Steven J. Baum P.C. and Pillar Processing LLC have agreed to a $4 million settlement with New York Attorney General Eric Schneiderman for conducting improper legal filings against distressed homeowners.

Feeling hungry for news about the servicing market? Then join me for a free breakfast at the Mortgage Servicing Conference!

Bank of America said it will offer a small number of customers facing foreclosure the option to remain in their homes and rent the property instead.

The Consumer Financial Protection Bureau late this week unveiled an interactive database with answers to consumers' frequently asked questions about financial products.