Citi fails National Mortgage Settlement loan modification metric

Citi [C] failed one of the new metrics used by the National Mortgage Settlement and the Monitoring Committee regarding loan modifications.

Bank of America, Chase, Green Tree and Wells Fargopassed all the metrics tested in the second half of 2014.

“I am pleased to see that the servicers are adhering to the NMS’s servicing rules, which aim to give borrowers better experiences,” said Joseph Smith, NMS monitor. “Among five servicers and over six months, only one failure was uncovered, and of the servicers who had earlier fails to address, the corrective actions put in place were successful.

“Green Tree completed eight corrective action plans (CAPs) to address the root causes of its previous fails. During the cure period, which is Green Tree’s chance to fix the issue, I found no evidence of any failures.

“Citi failed one of the new metrics the Monitoring Committee and I negotiated to address the loan modification process. It also implemented an approved CAP and cured the fail in the next quarter.”

Read on.

Deutsche Bank Staff Probed Over Libor by Frankfurt Prosecutors

Frankfurt prosecutors are investigating Deutsche Bank AG employees over their roles in the Libor-rigging scandal.

Authorities opened the probe after receiving a Libor report compiled by German financial regulator Bafin, said Nadja Niesen, a spokeswoman for Frankfurt prosecutors.

“We will first analyze the Bafin report before deciding where this investigation will head,” said Niesen. “There is nothing more to say about the case at the moment.”

The Frankfurt-based lender has paid billions of dollars in fines to settle investigations into its role in rigging the London interbank offered rate. The misconduct involved at least 29 Deutsche Bank employees including managers, traders and rate-submitters, primarily based in London but also in Frankfurt, Tokyo and New York, according to the U.K. Financial Conduct Authority.

Read on.

Regulators: Banks still failing mortgage service tests

Four years after pledging to clean up wide-ranging foreclosure abuses, Wells Fargo & Co., JPMorgan Chase & Co. and four other banks still aren’t complying with customer-service standards imposed by a federal regulator.

The Office of the Comptroller of the Currency said last week that it has restricted mortgage servicing operations at Wells Fargo, Chase, U.S. Bancorp, Santander Bank, EverBank Financial Corp. and HSBC Holdings.

“We’re not satisfied with where they are at this point in time,” Morris Morgan, deputy comptroller for large banks, said during a conference call.

By contrast, the agency said it had lifted consent orders against Bank of America Corp., Citigroup Inc. and PNC Financial Services, finding that they have complied with the orders issued in April 2011 and amended in February 2013.

Morgan said regulators expect that Wells Fargo, Chase and the other four noncomplying banks to take “months, not years,” to meet servicing standards.

For now, the banks must seek permission from the comptroller to name senior servicing managers, set up offshore call centers or acquire mortgage servicing business, which collects payments and handles foreclosures.

Read on.

Revolving Door Spins: “Retired” Dallas Fed Chief Joins Barclays As “Senior Advisor”

Spin revolving door, spin.

Recently “retired” Dallas Fed chief Richard Fisher — who really, really believed that talk of falling oil prices negatively affecting the Texas economy amounted to “bull droppings” until a JP Morgan analyst reminded him that the “only thing dropping in the Texas economy [was] jobs” — is following proudly in the footsteps of Ben Bernanke, Jeremy Stein, and Janet Yellen (if you count unofficial, off-the-record ‘consultations’) by becoming the latest Fed policymaker to ink a lucrative deal ‘advising’ the private sector.

As WSJ reports, Fisher will become a “senior advisor” to Barclays starting on July 1:

Barclays PLC on Monday named Richard Fisher, who recently retired from his post as head of the Federal Reserve Bank of Dallas, as senior adviser at the bank.

Read on.

JPMorgan Just Cornered The Commodity Derivative Market, And This Time There Is Proof

Zerohedge:

For years there had been speculation, rumor and hearsay that JPM had cornered the US commodities market. Now, finally, we have documented proof.

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Traditionally, we look at the OCC’s Quarterly Bank Report on derivatives activities to see which was the largest bank in the US in terms of total notional derivative holdings. The reason being that like on frequent occasions in the past, we find some stunning  results, such as most recently in January when we wrote that, for the first time, Citigroup had eclipsed JPM as the largest US bank in total derivatives, with just over $70 trillion compared to perennial megabank JPM’s $65.3 trillion as of the third quarter of 2014, explaining also why Citigroup had drafted the Swaps push out language in the Omnibus Bill.

And while this time there was little exciting to report at the consolidated level (JPM overtook Citi in Q4 only for Citi to once again become the world’s largest bank in total derivatives with $56.6 trillion compared to $56.2 trillion for JPM and $52 trillion for Goldman as Bloomberg reported earlier), and in fact total notional derivatives tumbled from $220.4 trillion in Q4 to $203.1 trillion in Q1 the lowest level since 2008…

Victory for HECM Non-Borrowing Spouses at Last

After more than six years of struggle for justice for older Americans whose spouses borrowed money through HECM reverse mortgages, we have victory!

HECM surviving non-borrowing spouses will be able to stay in their homes if their borrowing spouses die without having to spend huge sums of money to pay down the mortgage loan balance, an obstacle to a humane resolution of the  non-borrowing spouses’ displacement crisis.

A new policy released on Friday, June 12, 2015 removed two harsh conditions in a now revoked policy that we strongly objected to on this blog. We are grateful to God for this sweet victory!

We grateful to the many surviving non-borrowing spouses, their families, and their lawyers across the country who reached out to us and shared their harrowing stories with us. Their stories inspired us to fight on, even when the outcome looked bleak, even when many thought we were crazy to challenge the “considered” HECM reverse-mortgage policies of a very powerful federal bureaucracy such as the U.S. Department of Housing & Urban Development (HUD), even when many industry voices fell silent and resigned to policies that hurt their customers as well as their own bottomline.

Read on.

Miami-Dade to close dedicated foreclosure courts

Miami-Dade Circuit Court will stop dedicating three courtrooms to foreclosure cases as their backlog winds down. Circuit Judge Jennifer Bailey, head of civil courts, ordered that trials and summary judgments involving foreclosures will be assigned to circuit judges rather than senior judges in the foreclosure-dedicated courtrooms. The foreclosure courts in Miami-Dade will formally shut down on Tuesday, June 30, the last day of the state’s fiscal year. In 2013, the state government provided its court system with extra funding, temporary staff and other resources to clear a mounting number of foreclosure cases. The state hasn’t renewed the extra funding. – See more at: http://therealdeal.com/miami/blog/2015/06/27/miami-dade-to-close-dedicated-foreclosure-courts/#sthash.ClRYC5fw.upOSOBga.dpuf