Loss mitigation

The Consumer Financial Protection Bureau on Thursday finalized new requirements for mortgage servicers that provide more help to struggling borrowers and add consumer protections when loans are transferred.

The Consumer Financial Protection Bureau added its voice Tuesday to a chorus of other regulators in calling for sustainable foreclosure relief when the Home Affordable Modification Program expires at yearend.

Mortgage servicing has a reputation for being cold and impersonal, but companies have the opportunity to put more of a personal touch on their interactions with borrowers by analyzing the wealth of data available to them.

The Consumer Financial Protection Bureau released a plan Thursday to overhaul the debt collection industry that would limit collection attempts to six per week and require confirmation of a debt before contacting consumers. The plan, however, is not yet directed at banks and credit card companies.

Walter Investment Management Corp. subsidiary Ditech Financial plans to lay off more than 100 employees in North Carolina and Texas following declines in defaults across the country.

As if high default costs haven't been challenging enough for mortgage servicers, a growing number of seriously delinquent loans are Federal Housing Administration products, which require significant upfront investment to resolve.

Federal regulators warned mortgage servicers Monday that they will still expect them to offer loan modifications to distressed homeowners even after the Home Affordable Modification Program expires at yearend.

Ocwen Financial Corp. has converted more than 4,100 trial plans into permanent modifications through the Treasury Department's streamlined modification program.

The Dec. 31 expiration of the Home Affordable Modification Program will have a limited negative effect on residential mortgage-backed securities from 2008 or earlier, according to Moody's Investors Service.

The Federal Housing Finance Agency’s first report on the sales of nonperforming loans owned by Fannie Mae and Freddie Mac may seem discouraging at first.

The Federal Housing Finance Agency wants mortgage servicers reaching out to delinquent borrowers to be exempt from tough restrictions on robo-calling. But the idea is being panned by consumer groups, who say it would give a free pass to mortgage servicers that have a record of consumer-protection violations.

Fitch Ratings will now conduct reviews of residential mortgage-backed securities deal agents as part of its RMBS master criteria, with Clayton Holdings as the first deal agent to receive an assessment.

Mortgage servicers have failed to make significant investments in technology and compliance systems, resulting in substantial harm to consumers, according to a report issued Wednesday by the Consumer Financial Protection Bureau.

A Massachusetts court's recent ruling affirming homeowners associations' right to super lien priority highlights the importance of preserving condominium properties — and some banks agree.

While negative equity rates continue to drop nationally from their 2012 peak, the share of homeowners underwater in the Rust Belt remains elevated, according to Zillow.

The Federal Housing Finance Agency is set to make the sales of nonperforming loans by Fannie Mae and Freddie Mac more transparent, including providing information on trends at the individual pool level, according to a top agency official.

JPMorgan Chase has received credit for $3.89 billion of consumer relief, plus it says it has provided an additional $113 million, putting the bank over the top on its obligation.

The Federal Housing Administration's loan sales are drawing more attention after a recent critical report said it was resulting in vulnerable borrowers losing their homes.

American International Group's mortgage insurance business has secured indemnity reinsurance coverage for a portfolio of policies from 2008 and earlier.

After the Home Affordable Modification Program ends, servicers will employ myriad proprietary workout options to meet ongoing compliance requirements. But will more discretion in loss mitigation practices create consumer and investor confusion?