Links in “Mortgage Lending”

Some in the industry are applauding the increase in the income threshold and the elimination of the down-payment requirement; others are concerned the proposed changes to the Qualified Residential Mortgage rule could result in a repeat of the practices that lead to the crash. [8/29]

Failure to disclose transfers of servicing, late payments of property taxes, missing denial notices are among the deficiencies noted; what the CFPB expects in terms of remediation is also reviewed. [8/28]

The answer appears to be “yes.” Property values have been rising and some lenders are looking to market home equity loans, but in a far more conservative fashion. [8/26]

Fascinating table shows delay in detection and reporting of mortgage fraud with event of fraud often not reported for years in mortgage lending. Analysis shows 2006 and 2007 event of fraud years combined exceed all other years 2001 through 2012 combined. [8/22]

With a capital "S" as in "servicing"! CFPB report declares inadequate compliance systems for handling mortgage servicing at banks and nonbanks. Problems center on sloppy account transfers, poor payment processing, and loss mitigation systems. Declares the fix a high priority. [8/22]

Recent CFPB exams found mortgage services still lacking important paperwork, failing to tell customers when a loan is transferred to another company, or not processing mortgage payments accurately or timely when there is a change of address or cancellation of mortgage insurance payments, resulting in higher fees for borrowers; examinations being opened. [8/22]

False statements pertaining to income, employment, and rental history were backed by people paid to answer calls from lenders to affirm the false statements; costs for disability access modifications were also included in the prices, but were rarely done, with children of buyers named as building contractors so money could go to the buyers. [8/19]

Recent NAFCU survey shows that credit unions rely to a greater extent than banks on the GSEs as a source of liquidity since banks have more options to hedge against interest rate risk; approximately half of the respondents stated that the elimination of the GSEs would significantly affect their ability to offer mortgage loans. [8/16]

2nd update to "Best Practices" for Mortgage and other lending programs shows direction FIs must pursue to stay ahead of regulatory curve. Policy and procedural "guidance" offered. [8/16]

Realty Trac reports that the U.S. is on track to end this year with the lowest number of foreclosed homes in six years. However, some states are still experiencing a high rate of foreclosures. The top ten states for foreclosures are Florida, Maryland, Ohio, Connecticut, New Mexico, Illinois, Nevada, Georgia, South Carolina, and Utah. [8/15]