Risk management

Outsourcing of labor amongst mortgage servicers may cause problems for the private-label residential mortgage-backed securities market, according to Fitch Ratings.

Lenders could face tougher enforcement and higher penalties if they make errors on the new mortgage disclosure forms that are slated to go in effect next August.

Wide-ranging efforts to reform Home Equity Conversion Mortgage lending and servicing practices are designed to close loopholes and resolve policy inconsistencies, but some obstacles remain unresolved and more work needs to be done.

Technology companies such as Ellie Mae, which almost doubled its employees to 700 and saw its stock price reach a new high this year, are seizing an opportunity to transform how mortgages are made.

The credit quality of U.S. commercial mortgages being packaged into bonds slipped further in the third quarter as borrowers piled on more debt, according to Moody's Investors Service.

Mortgage executives who have long decried new regulations as excessive are increasingly becoming resigned to the fact that changes are here to stay.

The three-year-old U.S. consumer protection agency said it discovered that the largest mortgage servicers have been mishandling loan modifications and harming borrowers since new rules came into effect in January.

The CoreLogic Mortgage Fraud Report estimates that in the second quarter approximately $3.3 billion in mortgage debt contained elements of fraud or serious misrepresentations.