Freddie Mac auctioned off 1,052 delinquent nonperforming loans serviced by Ocwen on May 21 as part of its Standard Pool Offerings.
The loans’ aggregate unpaid principal balance is $201 million. LSF9 Mortgage Holdings was the winning bidder.
The sale is expected to close in July, subject to the Federal Housing Finance Agency NPL sale requirements. It is Freddie’s third sale of deeply delinquent loans from its mortgage investment portfolio this year.
These loans have been delinquent for three years on average. Those auctioned were offered as a single pool of mortgage loans. Previously modified mortgages that later became delinquent comprise 29% of the aggregate pool balance.
The Consumer Financial Protection Bureau and theDepartment of Justice filed a complaint againstProvident Funding Associates for charging higher broker fees on mortgage loans to African-American and Hispanic borrowers.
The lender could potentially pay $9 million in damages if the court accepts the order.
Provident allegedly violated the Equal Credit Opportunity Act by charging African-American and Hispanic borrowers more in total broker fees than white borrowers based on their race and national origin and not based on their credit risk.
Between 2006 and 2011, Provident made over 450,000 mortgage loans, and during this time period, Provident’s practice was to set a risk-based interest rate and then allow brokers to charge a higher rate to consumers. Provident would then pay the brokers some of the increased interest revenue from the higher rates. Provident’s mortgage brokers also had discretion to charge borrowers higher fees, unrelated to an applicant’s creditworthiness or the terms of the loan.
Posted in Uncategorized
Tagged CFPB, DOJ
Wall Street’s gorilla wants back in the jungle.
Richard “Dick” Fuld, the notoriously competitive CEO who led Lehman Brothers to its demise seven years ago, will test how forgiving Wall Street can be on Thursday when he’s expected to discuss for the first time the bankruptcy that was the tipping point of the financial crisis.
Indeed, Fuld, 69, is one of the chief culprits of the 2008 crisis. He and Countrywide Financial CEO Angelo Mozilo built up their respective companies’ positions in the subprime mortgages that eventually went bust — taking the economy with them.
And while Thursday’s speech won’t be his first public appearance — he has a consulting company and spoke at a college earlier this year — it’s telling that he’s chosen a conference on penny stocks to tell his side of the story.
“In Dick Fuld’s case, I think it was, to a degree, an unfair outcome,” Joseph Grano, the former chairman and CEO of UBS Financial Services, told The Post. “I can tell you that among the people who know him, he’s not toxic at all.”
Oh look at here… Lord Jamie is having his usual tantrum….
Jamie Dimon doesn’t want to hear your thoughts about running his bank.
The JPMorgan CEO railed against some of the bank’s “lazy” shareholders on Wednesday, flogging them for voting to split his CEO and chairman roles and for getting uncomfortably close to voting to reject his $20 million pay package.
On May 19, 38 percent of the bank’s shareholders voted to reject Dimon’s total compensation after two proxy voting companies, ISS and Glass Lewis, said that it didn’t align his incentives with the bank’s long-term goals.
During an industry conference, the 59-year-old CEO chided those investors who dared rebuke him.
“God knows how any of you can place your vote based on ISS and Glass Lewis,” he said in response to a question about splitting his dual roles. “If you do that, you are just irresponsible, I’m sorry, and you probably aren’t a good investor, either. And you do — some of you here do it, because you’re lazy.”
An investment banker jumped to his death from the window of his million-dollar apartment in the Financial District on Thursday, sources and authorities said.
The 29-year-old man plunged from the 24th floor of the luxury Ocean apartment building at 1 West St. at about 10:40 a.m. and landed on a guardrail near the northbound Battery Park Underpass, narrowly missing a black SUV.
The man’s body was mangled by the impact, leaving one of the vehicle’s passengers horrified, witnesses said.
“I went outside, and the woman in the car was screaming, ‘I didn’t know where he came from!’ ” said Hans Peler, 48, a manager at the building’s parking garage.
“It happened right in front of our guy who waves cars in with the flag. He was so shaken up, I told him to go home.”