Daily Archives: March 10, 2015

BLACK KNIGHT FINANCIAL SERVICES: 1ST TIME, REPEAT FORECLOSURE STARTS AT 12-MONTH HIGH

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.

WEAK JUSTICE FOR WALL STREET: HOW A TWISTED DOUBLE STANDARD SAVED CITIGROUP MILLIONS

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

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

47 Republicans Senators May Have Just Broken the Law By Writing An Outrageous Letter To Iran

When you thought the legislative branch in this country are idiots and clowns, then you are absolutely on the right track.

Daily Banter:

47 Senators signed an open letter addressed to the “Leaders of the Islamic Republic of Iran” on U.S. Senate letterhead. The correspondence basically indicated that Iran’s ongoing negotiations on its nuclear program with the Obama administration are an all but futile endeavor.

However, the idiot Senators that signed this letter to Iran may have violated the Logan Act, which reads in part,

“Any citizen of the United States, wherever he may be, who, without authority of the United States, directly or indirectly commences or carries on any correspondence or intercourse with any foreign government or any officer or agent thereof, with intent to influence the measures or conduct of any foreign government or of any officer or agent thereof, in relation to any disputes or controversies with the United States, or to defeat the measures of the United States, shall be fined under this title or imprisoned not more than three years, or both.”

Housing groups criticize NY Gov. Cuomo on spending of settlement funds to be directed to housing

Gov. Andrew Cuomo is under fire from housing groups for directing none of the nearly $500 million from settlements with financial institutions over mortgage misconduct to programs that would help address the lingering effects of the housing crisis.

The groups point out that housing programs aren’t getting any of the $492 million in settlement funds that came from mortgage-crisis agreements with Bank of America Corp., Citigroup Inc. and Ocwen Financial Corp. Those funds were part of total settlements of $5.4 billion that Albany now can spend.

The settlement documents indicate the money was to be directed to housing, though discretion was left with the state to distribute it.

“Any settlements that are housing-related should be reinvested in housing and helping families impacted by the foreclosure crisis,” said Rachel Fee, executive director of the New York Housing Conference, a housing-policy organization focused on budget issues. “We’re still feeling the impact and we really need to address those issues.”

While dozens of groups across the state have lobbied for more bank-settlement money for their causes, housing groups cite the wording of the agreements to make their case.

The settlement with Bank of America says that $300 million paid to the state of New York “shall be used, to the maximum extent possible, for purposes of redeveloping and revitalizing housing and homeownership and rebuilding communities in the State…” The settlement with Citigroup uses the same language in directing $92 million of funds to New York state.

A December 2014 release from the New York State Department of Financial Services also specified that $100 million from Ocwen Financial would go to “housing, foreclosure relief, and community redevelopment programs supporting New York’s housing recovery.”

Representatives for Bank of America and Citigroup declined to comment. Ocwen didn’t respond to requests for comment.

Read on.