Monthly Archives: July 2015

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 action covers Residential Credit Solutions’ illegal practices prior to the January 2014 effective date of the CFPB’s new mortgage servicing rules. CFPB said the company…(read more)

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Source: Mortgage News Daily

MBS MID-DAY: Big Rally After Super Weak Wage Growth

Posted To: MBS Commentary

Today's market mover came out of left field, and in a big way. The Employment Cost Index is typically a non-event, having only moved markets noticeably one other time in the past few years. But it completely rocked them today. Chalk that up to the fact that it was the lowest quarterly wage growth in the history of the report , rising only 0.2% vs a median forecast of 0.6%. That means Q2 wages grew at only 1/3rd the pace expected! (Incidentally, Q1's pace was +0.7). After a flat overnight session, Treasury yields rocketed lower, and MBS jumped up more than a quarter point. Additionally, the discussion on the yield curve in this morning's commentary is timely as there were immediate implications for the curve. Reason being: the severe lack of wage growth suggests severe issues for…(read more)

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Source: Mortgage News Daily

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 on summer vacation but not before the House panel bill advanced with broad bipartisan support and many experts think that Senate passage is likely. A few weeks ago the regulator of Fannie Mae and Freddie Mac (FHFA) awarded the companies’ chief executives multimillion-dollar pay increases…(read more)

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Source: Mortgage News Daily