Reuters, May 14, 2019–Richard LeongThe number of U.S. homeowners who fell behind on their mortgage payments climbed in the first quarter from an 18-year low at the end of 2018, while the share of mortgages at the start of foreclosure actions slipped, the Mortgage Bankers Association said on Tuesday.
Category: Top National News
Analyzing The Impacts Of Administrative GSE Reform
Mortgage Media, May 13, 2019–David Stevens, CMBFormer MBA President and CEO says the Administration’s renewed interest in resolving conservatorship of Fannie Mae and Freddie Mac could result in “downside risks” to the real estate finance industry.
Appeals Court Revives Class Action Suit Against Nationstar for Redundant Flood Insurance
HousingWire, May 13, 2019–Jessica GuerinIn a unanimous decision, judges in the 11th Circuit Court of Appeals revived part of a Florida condo owner’s claims against Nationstar, accusing the servicer of ripping off borrowers by unnecessarily placing flood insurance on their properties for which they were charged thousands of dollars.
Live Well Financial’s Abrupt Closing Leads to Host of Problems
HousingWire, May 13, 2019–Jessica GuerinOn Monday, Flagstar Bancorp revealed in a Securities and Exchange Commission filing that Live Well owes the bank $74 million, which includes $5 million in a warehouse line of credit.
Drop in Mortgage Rates Hurts Impac, but May Pay Off Later
National Mortgage News, May 10, 2019–Bonnie Sinnock (subscription)Lower rates hurt the value of Impac Mortgage Holdings’ servicing rights and overall earnings in the first quarter, but they could help improve the company’s second-quarter results.
Ginnie Mae’s MBS Issuer Shift Creates ‘Greater Risk of Loss:’ GAO
National Mortgage News, May 10, 2019–Paul Centopani (subscription)The Government Accountability Office called on Ginnie Mae to undertake four reforms to its operations, citing concerns regarding the ongoing shift in size and capitalization of mortgage-backed securities issuers.
Equifax Sets Aside Nearly $700 Million for Expected Data Breach Payouts
HousingWire, May 10, 2019–Ben LaneAs part of its first quarter earnings release, Equifax CEO Mark Begor disclosed that the company set aside $690 million during the first quarter that includes the losses it expects to take in connection with a “potential global resolution of the consumer class action cases and the investigations by certain federal and state regulators.”
Fannie and Freddie Back More Mortgages of Those Deeply in Debt
Wall Street Journal, May 13, 2019–Ben Eisen (subscription)The gatekeepers of the American mortgage market are increasingly backing loans to borrowers who have heavy debt loads, highlighting questions about mortgage risk as policy makers debate ways to change the system.
As CFPB Mulls Privatizing Database, Consumer Complaints Mount
American Banker, May 12, 2019–Kate Berry (subscription)In the wake of the massive data breach at Equifax, it was not surprising that financial consumer complaints sent to the Consumer Financial Protection Bureau shot up by nearly a quarter in 2017. But last year, complaints kept climbing.
Can FHA’s Promise of Softer Enforcement Get Lenders Back on Board?
National Mortgage News, May 9, 2019–Hannah Lang (subscription)The financial services industry welcomed a proposed overhaul of how the Federal Housing Administration identifies False Claims Act violations, but some observers say it remains to be seen if the changes will lure mortgage lenders back to the FHA.