In a recently published VALERI Servicer Newsflash , the VA indicated that Electronic Default Notification events on current loans that are impacted by a natural disaster should not be reported. As explained in the Newsflash, the “EDN event should only be reported prior to the 61st day of delinquency, with 'Property Problems' as the reason […]
The plaintiff, Bauer, defaulted on his mortgage. Then-mortgagee, JP Morgan Chase , filed a judicial foreclosure against Bauer which was voluntarily dismissed in 2013. Foreclosure News
Fannie Mae released an update to the Reverse Mortgage Loan Servicing Manual on September 18, 2018, relieving servicers of post-foreclosure sale responsibilities. The new changes are related to the servicer requirement to pay ground rents, co-op fees and assessments, and property taxes on Fannie Mae's REO properties. Foreclosure News
In CFPB news, Mick Mulvaney's efforts to reshape the Consumer Financial Protection Bureau continue apace with more requests for information and improvements to the mortgage servicing rule. Finally, a recent California decision affirms the Bureau's right to properly tailored civil monetary penalties and injunctive relief, albeit in the more limited forms imposed earlier by the […]
On January 30, 2018, the office of the Massachusetts Attorney General announced that the state reached a settlement with a national mortgage servicer that requires the Company to settle claims that it placed homeowners at risk of foreclosure due to “unfair and deceptive” loan servicing practices. Although the exact amount was not specified, the Massachusetts […]
Mortgage servicers should approach efforts to overhaul their compensated structure with caution, as changes to the status quo “could have ripple effects across the entire real estate finance industry,” warned Mortgage Bankers Association Chairman David Motley. Servicers typically receive 25 basis points of borrowers' monthly mortgage payments as a fee for managing loan accounts. Foreclosure […]
In a settlement involving the attorneys general of 49 states and the District of Columbia, a national mortgage servicer agreed to pay roughly $ 45 million for allegedly violating state and federal laws on foreclosures, loan modifications and servicing, including more than $ 31 million in payments to affected borrowers and $ 5 million to […]
The Consumer Financial Protection Bureau released a new interim final rule intended to clarify how mortgage servicers can communicate with borrowers at risk of foreclosure, as well as a proposed rule about bankruptcy communications. In 2016, the CFPB published the Mortgage Servicing Final Rule, amending Regulation X. Pursuant to the changes, servicers were required to […]
On June 7, 2017, the Consumer Financial Protection Bureau issued a Consent Order against mortgage servicer Fay Servicing, LLC , requiring Fay Servicing to pay $ 1.15 million to borrowers and to cease activities that the CFPB contended violated the Real Estate Settlement Procedures Act , its implementing regulation, Regulation X, and the Consumer Financial […]
On May 16, 2017, the U.S. Department of Justice announced that it had reached a settlement with a company engaged in reverse mortgage servicing, in connection with the company's participation in the Department of Housing and Urban Development's Home Equity Conversion Mortgage program, which offers senior citizens reverse mortgages insured by the Federal Housing Administration […]