Daily Archives: March 10, 2015


The latest mortgage monitor from Black Knight Financial Services shows that both first-time and repeat foreclosure starts reached 12-month highs, although there was clear separation in the levels of increase between the two.

Separation also continues to be seen between judicial and non-judicial foreclosure states across multiple performance indicators,” according to Trey Barnes, Black Knight’s senior vice president of Loan Data Products.

“Overall foreclosure starts hit a 12-month high in January, and that held true when looking at both first-time and repeat foreclosure starts individually,” Barnes said. “Repeat foreclosure starts made up 51% of all foreclosure starts and increased 11% from December. In contrast, first-time foreclosure starts were up just a fraction of a% from the month prior.”

Black Knight found that January foreclosure starts jumped about 10% from December in judicial states as compared to just a 1.7% increase in non-judicial states. Judicial states are also seeing higher levels of both new problem loans and serious delinquencies (loans 90 or more days delinquent, but not yet in foreclosure) than non-judicial states, although volumes are down overall in both categories.

Rest here…

Supreme Court ruling makes mortgage loan officers eligible for overtime

Mortgage loan officers are now entitled to a 40-hour work week and overtime pay, after the U.S. Supreme Court unanimously ruled that the Department of Labor was within its rights when it chose to reclassify loan officers as non-exempt employees who are eligible for overtime.

The ruling stems from a 2010 decision by the Department of Labor to reclassify loan officers. That decision itself was a reversal of a 2006 decision by the Department of Labor that changed loan officers to exempt status.

When the Department of Labor made the change in 2010, it prompted the Mortgage Bankers Association to sue, claiming that the 2010 interpretation of the rule violated the Administrative Procedures Act by failing to follow procedures already laid out for changing significant rules, including not providing notice and time for public comment on the rule change.

Read on.

Small personal loan at center of lawsuit against borrower by Springleaf Financial Services

And ironically Springleaf Financial Services, a former subprime unit for AIG, may become the largest subprime lender thanks to Citigroup selling their subprime unit to Springleaf.

GRETNA – A local woman is being sued by a finance company for not repaying a small personal loan.

Springleaf Financial Services of Louisiana Inc. filed suit against Paulette Desalle in the 24th Judicial District Court on Jan. 12.

Springleaf Financial Services of Louisiana Inc. contends that Desalle was responsible for repaying a $1,264.16 loan to be repaid in 24 monthly installments of $77 a month that were to begin on Sept. 15, 2014. However, the plaintiff asserts the defendant has refused to make even one payment on the loan.

The defendant is accused of breach of contract.

Damages of all amounts due is sought by the plaintiff.

Read on.

To give you a history of Springleaf:

Springleaf previously known as American General Finance. More from Wikipedia:

In 1982 the company was acquired by American General Corporation (now known as AIG), and acquired General Finance with 350 branches in 16 states.


In August 2010, Fortress Investment Group acquired 80% of the company and, in 2011, changed its name to Springleaf Financial Services.

In other words, the former and failed subprime unit is now the biggest subprime lender. Springleaf just created a new entity.


By , The Fiscal Times

If I missed a scheduled payment to a bank, I would probably get hit with a late fee. Credit bureaus would receive a delinquency report. If I continued to miss the payment, debt collectors would harass me at all hours with phone calls. They might take me to court and get a judgment against me that enables them to garnish my wages or my taxrefunds. If the debt was secured — i.e., backed by a piece of collateral — the creditor could initiate proceedings to take that collateral away from me. In the case of a mortgage, that means repossessing my house in a foreclosureaction. They could take my car or strip me of all my other assets.

All of these consequences made the credit system work: Without them, people would be foolish to pay their debts. But if you’re a big bank, you can fail to make a $20 million payment for two years — something you would never tolerate from your own customers — and face absolutely no consequences. That’s just how our financial system rolls.

– See more at: http://www.thefiscaltimes.com/Columns/2015/03/06/Weak-Justice-Wall-Street-How-Twisted-Double-Standard-Saved-Citigroup-Millions#sthash.X3pc7wOU.dpuf

Former Ocwen CEO Bill Erbey’s subprime empire beginning to crumble

Bill Erbey’s subprime empire is crumbling fast.

Two of the former mortgage servicing scion’s companies are working on changing the terms of a deal that’s been called “exorbitant,” as investors have pushed for greater distance between the five companies that were helmed by Erbey, according to an announcement Monday.

The two companies are Altisource Asset Management, or AAMC, and Altisource Residential, or RESI. They both still depend on mortgage servicer Ocwen Financial about three months after Erbey was forced to leave his position there following a two-year regulatory investigation by the New York Department of Financial Services.

RESI pays AAMC above-market rates for asset management services — a practice that has affected the share price, according to a letter last month from hedge fund Capstone Equities Capital Management.

Read on.

“Obamacare surtax” documented in lease raises renter’s suspicions

FOX 4 Kansas City WDAF-TV | News, Weather, Sports

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BLUE SPRINGS, Mo. — A Blue Springs man’s lease includes a monthly fee for something called an “Obamacare Surtax.” But when he couldn’t find any evidence that such a tax exists, he called Fox 4 Problem Solver Linda Wagar for help.

This story intrigued Problem Solvers because we’d never heard of such a tax, yet the owners of an apartment complex have been collecting it for more than a year and keep insisting to their tenants that it’s real.

Russ Wilson said he called 80 apartment complexes in the last month trying to find out whether they charge renters a monthly fee for Obamacare.

“Everybody is like, ‘we don’t have a clue what you are talking about,’” he said.

But it is in black and white on Mr. Wilson’s rental lease: A $22 charge for a “monthly Obamacare surtax.”

Mr. Wilson asked the owners of his apartment…

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Bank of America thought I died

Bank of America is one bank that is not one of the sharpest knives in the drawer when it comes to hiring the best employees. This takes the cake…

I was on a business trip in Barcelona, Spain, for a week, so I was a bit behind on errands and other life stuff.

Like checking my mail.

On Sunday, I finally caught up and checked my mail for the first time in about six days.

The first letter I opened was this one from Bank of America, where I have checking and savings accounts:
bank of america dead letter

The second letter I opened was another one from Bank of America apologizing for the first letter and assuring me I’m still alive.

Source: Business Insider