CFPB Hits Servicer for Creating “Loan Modification Purgatory”

Posted To: MND NewsWire

A Texas mortgage servicer has run badly afoul of the Consumer Financial Protection Bureau (CFPB) for repeated violations of servicing rules . Residential Credit Solutions has agreed to pay $1.5 million in restitution to its victims and a $100,000 civil money penalty under a consent agreement announced on Thursday. CFPB has a laundry list of complaints against the company which bills itself as specializing in servicing delinquent and “credit sensitive” mortgages loans. Since 2009 approximately 75,000 borrowers have had loans transferred from other servicers to the company which has about $95 million in assets. This enforcement …read more

Wells MSA News; CFPB TRID Toolkit; Capital Markets Trends & Student Loans

Posted To: Pipeline Press

A rare blue moon (two full moons appearing in the same calendar month) will be visible in the sky today for the first time in three years. We won’t see the next one until early 2018 – and imagine how residential lending, market share rankings, and compensation may change between now and then. How’d you like to have a job where your pay is determined by Congress? And your family and co-workers pick up the newspaper in the driveway and see ” Lawmakers Move to Halt Fannie, Freddie Pay Raises ?” Yes, the House has gone …read more

MBS Day Ahead: Closer Look at Changes in Yield Curve

Posted To: MBS Commentary

Yesterday's recap mentioned a 'farewell' to low short term rates despite longer term rates 'faring well.' This is a reference to the major changes that have been taking place with the yield curve in July. But just what the heck is the yield curve? If you're familiar with the yield curve, thinking about it is fairly second nature, but it takes some time spent thinking about it before that happens. If it's second nature for you, feel free to skip to the chart. If it's not second nature, don't worry, it's not that bad . I …read more

MBS RECAP: Longer Term Rates Fare Well, as Low Short-Term Rates Say Farewell

Posted To: MBS Commentary

As of mid-July bond markets seem to have put their foot down with respect to the relationship between long and short term rates. With the economic recovery and global growth outlook still open to debate–not to mention with global QE efforts ongoing–it makes sense for longer term rates to maintain a reasonable level of sponsorship. This is in line with the cries we often here for the economy being unable to sustain much of a run higher in rates. Such a run would seemingly be in contradiction to the Fed's stated intention of raising rates, but …read more

Mortgage Rates Stay Steady After GDP

Posted To: Mortgage Rate Watch

Mortgage rates were very close to unchanged despite market volatility surrounding the release of today’s GDP figures. GDP can occasionally cause a significant response in mortgage rates, and that’s especially true of the “advance” release. That’s due to the fact that the “advance” release is the first look at GDP for any given quarter. Subsequent releases merely revise the previous quarter’s result. Moreover, the Commerce Department implements revisions once a year that greatly affect past GDP reports. So not only are we getting the first look at last quarter’s GDP, but also a potentially significant …read more

Wells Fargo pulls out of Marketing Agreements with Agents, Builders

Posted To: MND NewsWire

Well Fargo Bank announced today that it will immediately begin winding down its marketing services and desk rental agreements with real estate firms, builders, and some other referral sources. Franklin Codel, executive vice president for mortgage production said the company was exploring a number of new options for enhancing and strengthening those relationships over the long term. A press release issued by the company said that the withdrawal decision was made as a result of increasing uncertainty surrounding regulatory oversight of these types of arrangements “and as part of Wells Fargo’s ongoing efforts to simplify the …read more

Equity Acceleration Slows, Are Some Owners Cashing Out?

Posted To: MND NewsWire

The rich get richer? When it comes to equity that appears to be the case according to information released by RealtyTrac on Thursday. The company’s U.S. Home Equity & Underwater Report shows an increase in the number of “equity-rich” properties, those with at least 50 percent equity rose by over a million between the second quarters of 2014 and 2015. At the end of the most recent period there were an estimated 10.9 million properties considered equity rich, approximately 19.6 percent of all properties with a mortgages , compared to 9.9 million or 18.9 percent at …read more

CFPB’s Latest Fine; JD Powers’ Servicing Survey; Prospect Withdraws From MSA Biz

Posted To: Pipeline Press

Fun with government numbers: approximately 52.2 million people in the U.S. participated in major means-tested government assistance programs each month in 2012, according to a U.S. Census Bureau report . Right or left, Democrat or Republican….yes, Libertarians, too! Participation rates were highest for Medicaid (15.3%) and the “Supplemental Nutrition Assistance Program,” formerly known as the food stamp program (13.4%). Those under 18 were more likely to receive means-tested benefits than all other age groups. In an average month, 39 percent of children received some type of means-tested benefit, compared with 17 percent of people age 18 …read more

MBS Day Ahead: Important Day for The Shorter Term Trend

Posted To: MBS Commentary

The direction of the trend in rates (or “bond markets”) varies depending on the time frame in question. For instance, looking back to the 1980's, rates are still in an epic trend lower. That only really changes if we begin our assessment in mid-2012 or early 2015. This most recent move from early 2015 would be considered the current longer-term trend . Any push back against that would be a shorter-term trend. This can be seen in the chart below as the teal lines moving lower within the context of the yellow lines (the candlesticks themselves …read more

MBS RECAP: Fed Statement No Big Deal for Bonds

Posted To: MBS Commentary

The Fed made a few token changes to its policy statement today, but as expected, no overtures for an impending rate hike. At least that wasn't the case superficially. If you want to get a bit philosophical with the Fed verbiage, there was an interesting change that might or might not mean something to you. The change in question has to do with the Fed's forward guidance on hiking rates as follows (new words in all caps): “The Committee anticipates that it will be appropriate to raise the target range for the federal funds rate when …read more