Reuters, Nov. 8, 2018–Karen Freifeld, Michael ShieldsUBS Group AG, Switzerland’s largest bank, faces another potentially costly legal battle as the U.S. Department of Justice draws up civil charges over the sale of mortgage-backed securities in the run-up to the 2008 financial crisis.
Category: Top National News
Ditech Faces NYSE Delisting as it Continues to Explore a Sale
National Mortgage News, Nov. 7, 2018–Bonnie Sinnock (subscription)”The company has fallen below the New York Stock Exchange’s continued listing standard that requires listed companies to maintain an average global market capitalization over a consecutive 30-trading-day period of at least $15 million,” Ditech said in a press release. “The company will continue to file periodic and certain other reports with the Securities and Exchange Commission under applicable federal securities laws. The suspension and commencement of delisting proceedings do not affect the company’s business operations.”
Servicers Can’t Slack on Compliance as States Step Up Oversight: S&P
National Mortgage News, Nov. 6, 2018–Brad Finkelstein (subscription)While the foreclosure crisis is over and federal regulators are being less assertive on enforcement actions, mortgage servicers can’t let their guard down about compliance, according to Standard & Poor’s.
Ocwen Renews Resolve to Cut Costs Using Scale as Its Loss Deepens
National Mortgage News, Nov. 6, 2018–Bonnie Sinnock (subscription)Ocwen Financial Corp. recorded a deeper quarterly loss of $41 million after acquiring PHH Corp., but still expects the deal’s economies of scale to eventually lower costs and restore profitability.
Wells Fargo Reveals Software Error Led to Hundreds of Faulty Foreclosures
HousingWire, Nov. 6, 2018–Ben LaneEarlier this year, Wells Fargo revealed that a software error in its mortgage underwriting system led to hundreds of unnecessary foreclosures, but now it appears the problem is even bigger than the troubled bank first thought.
Private-Label RMBS on Track to Surge Again in 2019: Bank of America
National Mortgage News, Nov. 5, 2018–Bonnie Sinnock (subscription)Although forecasts anticipate a continuing drop in overall originations, private-label residential mortgage-backed securitizations backed by newer loans are expected to keep increasing through next year, according to Bank of America.
Reverse Mortgage Market Closes Out October with Positive Gains
HousingWire, Nov. 5, 2018–Jessica GuerinRMI President John Lunde said the numbers continue to point to a slow recovery for the HECM industry, which has seen volume nosedive this year thanks to program changes issued last October.
Lowe’s to Close Nearly 50 Stores
Wall Street Journal, Nov. 5, 2018–Sarah Nassauer (subscription)Lowe’s Cos. Inc. said it would close nearly 50 stores as a new CEO seeks to boost sales by shedding less-profitable locations and focus spending elsewhere.
Fannie Mae Reports Income of $4B in Third Quarter
HousingWire, Nov. 2, 2018–Alcynna LloydFannie Mae reported Friday it posted a comprehensive income of $4 billion in the third quarter, which was primarily driven by the company’s business fundamentals.
How Risk-Sharing Deals are Renewing the Fannie Mae, Freddie Mac Rivalry
National Mortgage News, Nov. 2, 2018–Bonnie Sinnock (subscription)The fierce competition between Fannie Mae and Freddie Mac has largely taken a backseat to the myriad reforms enacted over the 10 years the mortgage giants have been in federal conservatorship. But the unique approach each company is taking with their credit-risk transfer products is quickly becoming a key point of differentiation with long-term implications.