Daily Archives: June 13, 2013

Link

Legal group seeks disclosure of CFPB mortgage complaint narratives

Legal group seeks disclosure of CFPB mortgage complaint narratives

When the Consumer Financial Protection Bureau releases its complaint database, it withheld releasing complaint narratives since it was an invasion of privacy. 

MFY Legal Services appealed the CFPB’s decision to withhold mortgage complaint narratives it requested pursuant to the Freedom of Information Act, according to an article from Ballard Spahr.

Under the Freedom of Information Act, there is an exemption that prohibits the disclosure of certain information that would constitute a clearly unwarranted invasion of personal privacy, the article explains. 

However, MFY argued in its appeal that FOIA Exemption 6 does not give the CFPB a basis to completely withhold complaint narratives and it must therefore produce the narratives with names, account numbers, loan numbers, and other directly identifying information redacted, the article said. 

Link

BREAKING: Ocwen enters massive MSR agreement with OneWest Bank

BREAKING: Ocwen enters massive MSR agreement with OneWest Bank

Ocwen Loan Servicing entered into a mortgage servicing rights purchase and sale agreement with OneWest Bank.

Ocwen has agreed to purchases $78 billion in unpaid principal balance of MSRs and related servicing advance receivables, in each case, measured as of April 30, according to an 8-K filing.

No operations or other assets are being purchased in the transaction.

The aggregate purchase price will be $2.53 billion, with $46 million of the aggregate purchase price paid in respect of the MSRs and $2.1 billion to be paid in respect of the servicing advances.

Link

Elizabeth Warren pushes two-tiered banking regulation

Elizabeth Warren pushes two-tiered banking regulation

Community banks represented 95% of all banking organizations in 2011 but represented only 14% of all the banking assets in the nation. However, community banks held 46% of all the small loans to businesses, according to a study done by the Federal Deposit Insurance Corp.

In light of this, Elizabeth Warren, D-Mass., said in a hearing with the Senate committee on Banking, Housing and Urban Affairs, “Are we reaching a point where we should have a two-tiered regulatory system?”

BofA Senior Collector of Loss Mitigation Simone Gordon: “I lied because I was told to lie.”

BOA Senior Collector

 

 

Excerpt:

“Beginning in 2009, I regularly spoke to people who had received HAMP Trial Period Plans, made their trial payments, and who were calling to inquire about the status of their expected permanent loan modification. I also saw records showing that Bank of America employees had told people that documents had not been received when, in fact, the computer system showed that Bank of America had received the documents. This was consistent with the instructions my colleagues and I were given. We were told to lie to the customers and claim that Bank of America had not received documents it had requested, and that it had not received trial payments (when in fact it had). We were told that admitting that the Bank received documents would open a can of worms since the Bank was required to underwrite the loan modification within 30 days of receiving those documents, and it did not have sufficient underwriting staff to complete the underwriting in that time.”

Link

JP Morgan Chase accused of maliciously suing CA homebuyers without evidence, coerce them into giving up their homes

JP Morgan Chase accused of maliciously suing CA homebuyers without evidence, coerce them into giving up their homes

  LOS ANGELES – J.P Morgan Chase Bank maliciously sues California homebuyers, without evidence, to coerce them into giving up their homes, Raul Dearmas claims in Federal Court.

Video

Securitization analysis explained

A must see video to view. CFLA explains securitization analysis.

Explanation of Securitization
1.ORIGINATOR.
The Transaction takes place between the debtor (mortgagor) and thecreditor here called the “originator” a.k.a. the mortgagee. The transaction consists of the mortgage note and the mortgage.The originator becomes the note holder.

2.WAREHOUSER.
The originator sells the transaction to the warehouser. The warehouser then becomes the note holder.

3.TRANSFEROR.
The warehouser buys the mortgage and also buys other mortgages toassemble a portfolio of mortgages. The portfolio is then sold to the transferor who is theinitiating party of the securitization.The transferor then becomes the note holder. Thetransferor creates the securitization.

Link

Fed Board Didn’t Vote on Foreclosure-Abuse Settlement

Fed Board Didn’t Vote on Foreclosure-Abuse Settlement

WASHINGTON—Federal Reserve staffers approved a foreclosure-abuse settlement with banks earlier this year without a formal vote of the central bank’s board, a top Fed official said in a letter to Congress.

Federal Reserve governor Daniel Tarullo told Congress that Fed governors didn’t vote on the January foreclosure settlement, which initially involved 10 banks and has since expanded. Lawmakers have questioned whether the settlement adequately compensates homeowners who may have been subject to foreclosure abuse. Since the January agreement, the pact has expanded to 13 banks and is now worth $9.3 billion.

In a letter sent this week to Sen. Elizabeth Warren (D., Mass.), Mr. Tarullo said the board’s staff “frequently consulted with board members” before exercising their authority to approve the foreclosure settlement.