Tag Archives: Regulation

After Consumer Financial Protection Bureau (CFPB) Deputy Director Steven Antonakes decried mortgage servicers for not doing enough to mend the industry after the recent housing crisis, one industry leader called his comments "inflammatory and without benefit to the audience." Ed Delgado, president and CEO of the Five Star Institute, believes the deputy director's remarks are not only ill-timed but also counterproductive.

The New York regulator who put a hold on Ocwen's latest mortgage servicing rights (MSR) deal with Wells Fargo expressed on Wednesday his concerns about the rapid growth of non-bank servicers in the industry--and his belief that regulators should step in when necessary. In remarks before an audience of bankers, Benjamin Lawsky voiced doubt over whether these growing firms could keep up with their own growth and accused them of cutting corners and causing harm to homeowners as a result.

A number of "unfair and deceptive" servicing practices "continued to plague consumers throughout 2013," the Consumer Financial Protection Bureau (CFPB) says in a recent report. "Taking action against mortgage servicing practices that harm consumers is a key priority for the CFPB," Director Richard Cordray said. "Especially under the detailed protections of our new rules, we expect services to clean up their act and provide responsible customer service."

Instead of bringing America together and setting us forth on the path towards economic growth and prosperity, what President Obama did in his State of the Union address was offer of the same misguided, go-it-alone ideas we've heard before, as opposed to real job creation and economic growth. Rather than go through the same divisive rhetoric and "stale political arguments" Americans have grown tired of, let's agree to put politics aside and do what's best for everyone, not just the chosen few.

While the Consumer Financial Protection Bureau (CFPB) touts its recently enacted mortgage regulations as a "back-to-basics approach" to lending, not everyone agrees. Speaking on "Mortgage Markets Today," Chris Whalen, EVP and managing director for Carrington Holding Company, discussed the pitfalls in the new regulations with Louis Amaya, host of the Five Star Internet radio show and CEO of iServe Companies. Among other things, Whalen predicts politicians and regulators will see pressure to review the rules, which he says have gone too far.

The Consumer Financial Protection Bureau (CFPB) last week ordered a Missouri-based mortgage lender and its president to pay more than $80,000 for funneling illegal kickbacks in exchange for real estate referrals. According to CFPB's complaint, filed in mid-January, Fidelity Financial Mortgage Corporation (FFMC) in 2010 entered into an agreement with a Missouri bank in which Fidelity would lease an office at the bank in exchange for business referrals.

CFPB Director Richard Cordray spoke to an audience in Phoenix, Arizona, to praise what he called the bureau's "back to basics" approach for the mortgage market.

With mere hours to go before major regulatory changes sweep the industry, servicers might be wise in taking one more look at how the new rules will affect them and what they can do to stay ahead.

While most larger servicing shops have made a great deal of progress ahead of Friday's new industry regulations, a report from Fitch finds smaller companies still have a number of challenges to meet. Fitch acknowledges that many independent and non-bank servicers have adapted to the technological advances made in the industry, but compliance with the new rules will mean more recordkeeping and infrastructure improvements that could mean higher costs for these smaller firms.

As new regulations go into effect and a new mortgage market takes shape this year, lenders and originators must reconsider current relationships and look for partnerships that synch with their priorities, according to Hammerhouse Strategic Growth Partners. Hammerhouse has dubbed 2014 "the year of the originator free agency," stating in a recent release, "[T]he key trend impacting the residential mortgage market in 2014 will be the development of the free agency market for successful mortgage originators."