Monthly Archives: January 2015

JP Morgan Chase to eliminate 350 jobs

JPMorgan Chase & Co. said Thursday it plans to cut more than 350 jobs later this year. The banking company has notified local employees at the Chase Tower location downtown about the job eliminations in late summer or early fall from its mortgage banking operations. All of 350 positions will be eliminated from that location. JPMorgan employs close to 1,500 in the Greater Rochester area.

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How corporate America is blocking $50 million from reaching Florida homeowners

In March 2013, a $50 million foreclosure prevention program was approved to reduce monthly mortgage payments for struggling Florida homeowners.

But in nearly two years, just 71 borrowers have been approved for the plan, called the Modification Enabling Pilot.

Why it’s been slow on the uptake, and may eventually fatally stumble, is an inability to compete with corporate hedge funds and billion-dollar, for-profit firms still making money on the housing crisis. And it’s not an easy program to understand so the public lacks awareness.

The idea partners the non-profit National Community Capital with the $1 billion Hardest Hit Fund. The non-profit bids on pools of thousands of discounted loans offered at auction by the Federal Housing Administration. As a private entity, whoever wins the auction is supposed to have more flexibility to modify the mortgage payments than what can be offered at the federal level.

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Middle Class Getting Squeezed Out of Courts. So What is Being Done About it? « LawReader

Alina's Blog

Labarga noted the New York Bar requires law school graduates to perform 50 hours of pro bono work before they are admitted to the bar and California allows nonlawyers to help litigants. “Here in Florida I’d get pushback from the Bar for trying that,” he said.

via Middle Class Getting Squeezed Out of Courts. So What is Being Done About it? « LawReader.

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Home Loan Servicing Solutions fires back at mortgage-negligence claims

Home Loan Servicing Solutions, Ltd. (HLSS) is joining with its associated company, Ocwen Financial (OCN), in the fight against investors who claimed that the companies breached their mortgage bond covenants, and is accusing the investors of attempting to profit on their stock holdings in HLSS as opposed to actually caring what happens with the mortgage bonds.

Last week, hedge fund BlueMountain Capital Management sent notices of default to Ocwen and Home Loan Servicing Solutions, saying that Ocwen’s regulatory troubles have caused an “irrefutable” default on notes the hedge fund holds in connection with the HLSS Servicer Advance Receivables Trust.

BlueMountatin Capital also stated in a letter addressed to Home Loan Servicing Solutions, Ocwen Loan Servicing, HLSS Servicer Advance Receivables Trust, and Deutsche Bank National Trust Company that Ocwen’s servicing issues caused a default on “certain residential mortgage-backed securities collateralized by loans serviced by Ocwen Loan Servicing” that BlueMountain Capital owns.

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CFPB wants more mortgages in “underserved” areas

The Consumer Financial Protection Bureau is pushing for greater access to mortgage credit in rural and underserved areas by attempting to increase the number of financial institutions in the space.

Currently, there are few players in the rural lending space, which is something the CFPB would like to see changed with the proposed rulemaking.

If successful, the CFPB hopes this new expansion will help small creditors adjust their business practices to comply with the new rules.

The bureau made sure to emphasize the need to maintain responsible lending while still ensuring that consumers are protected.

“Responsible lending by community banks and credit unions did not cause the financial crisis, and our mortgage rules reflect the fact that small institutions play a vital role in many communities,” said CFPB Director Richard Cordray. “Today’s proposal will help consumers in rural or underserved areas access the mortgage credit they need, while still maintaining these important new consumer protections.”

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New FHA guidelines to delay reverse mortgage foreclosures

HECM spouses get to stay for longer

The U.S. Department of Housing and Urban Development and the Federal Housing Administrationannounced changes to its reverse mortgage program designed to keep non-borrowing spouses during the foreclosure process.

The FHA issued a new policy under its Home Equity Conversion Mortgage program, which allows FHA-approved lenders to delay foreclosure proceedings against non-borrowing spouses in the event of the death of the last surviving borrower.

The FHA’s new guidance will allow reverse mortgage lenders to assign eligible HECMs to HUD upon the death of the last surviving borrowing spouse, which would allow eligible surviving spouses the opportunity to remain in the home despite their non-borrowing status.

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Big Banks Back Away From Mortgages; Nonbank Lenders Pick Up Slack

NEW YORK (TheStreet) — Big banks are continuing to back away from offering mortgages, allowing nonbank lenders such as Freedom Mortgage and Quicken Loans to grab a bigger share of the market.

Although the big banks such as Bank of America (BACGet Report) , JPMorgan Chase (JPMGet Report) and Wells Fargo (WFC) are still happy to provide mortgages to wealthy borrowers with strong credit records, they are much more cautious about higher-risk loans, even ones that meet underwriting requirements of government agencies such as the Federal Housing Administration, Fannie Mae (FNMA) , Freddie Mac (FMCC) or Ginnie Mae.

That has created an opportunity for nonbank lenders such as Freedom Mortgage, a privately held lender based in Mount Laurel, N.J.

Although fewer mortgages were originated last year than in 2013, Freedom Mortgage actually increased its business, selling $22 billion worth of mortgages, according to Chief ExecutiveStanley C. Middleman.

He expects to originate more than $30 billion this year.

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