Daily Archives: September 8, 2016

Ocwen fixes previous settlement failures, faces two new failed tests

Right as Ocwen Financial fixed previous compliance failures, the servicer is hit with two new compliance failures, according to the latest oversight report on Ocwen from the office of Joseph Smith, who is the monitor of the National Mortgage Settlement.

In the last report from the NMS, Ocwen failed to be back in compliance with one of the performance metrics of the National Mortgage Settlement that it failed in the second half of 2014. And because of those issues, Ocwen had to place 17,300 loans that “could have been affected” by this issue on foreclosure hold.

These issues are now resolved, according to the latest report.

Smith’s office permitted Ocwen to lift the foreclosure sale hold in July 2016 after it mailed corrected loan modification denial notices to affected borrowers and provided a sufficient timeframe for the borrower to appeal the denial.

Read on.

Wells Fargo braces for penalty from regulators

Another day, another settlement..

Wells Fargo & Co., the biggest U.S. bank by market value, is to be the subject of a regulatory enforcement action related to its cross-selling of products and sales tactics, according to people familiar with the matter.

The Office of the Comptroller of the Currency, Consumer Financial Protection Bureau and Los Angeles City Attorney plan to announce the civil action and a related settlement Thursday, the people said. The amount of a fine or remedial actions that may result weren’t immediately clear.

Wells Fargo declined to comment on any discussions with regulators.

Read on.

9 Investigates: Complaint involves homes owned by Bank of America in predominately African-American and Latino neighborhoods

ORLANDO, Fla. – 9 Investigative reporter Nancy Alvarez looked into more than a dozen potentially dangerous eyesore homes in Orlando, at the center of a federal complaint.

The complaint involves homes owned by Bank of America in predominately African-American and Latino neighborhoods.

Neighbors told Eyewitness News one of the homes in the Holden Heights neighborhood is a disaster and not much has been done to fix it since 2012.

“It allows all types of illicit activity — that’s a problem,” said community organizer Thomas Alston.

The city of Orlando is part of a national effort to hold banks accountable for foreclosed properties that fall into disrepair.

Eyewitness News found out many of the federal complaint claims fall predominantly in African-American and Latino neighborhoods.

Read on.

Congressman wants FBI to release details of financial crisis investigations

It’s about time….

If you’ve ever wondered why more (any) senior executives weren’t held responsible for their companies’ conduct during the financial crisis, you’re not alone.

Representative Bill Pascrell, D-NJ, feels the same way and he wants answers.

Pascrell, who serves on the House Ways and Means Committee, sent a letter Tuesday toFederal Bureau of Investigations Director James Comey, calling on the FBI to release the details on its financial crisis investigations.

In the aftermath of the financial crisis, dozens of companies have paid out billionsupon billions in fines for various acts of malfeasance during the financial crisis, but to this point, many of the executives who lead those companies have escaped punishment, including Angelo Mozilo, the founder of Countrywide.

Earlier this year, the Department of Justice abandoned its attempt to sue Mozilo for his company’s actions.

Countrywide originated more mortgages in this country from 2004 to 2007 than any other lender. During that time, Countrywide closed so many subprime mortgages it remained a top-5 producer for that home loan product. The same goes for other loans, such as Alt-A.

One of Countrywide’s executives was actually fined for her actions during the crisis, but that fine was recently overturned.

In May, the Second Circuit overturned a $1.27 billion penalty against Bank of America in a fraud case over defective mortgages sold by Countrywide in the run-up to the housing crisis.

The Second Circuit’s May decision also voided the $1 million penalty against Rebecca Mairone, who the New York Times once referred to as the “face of the housing crisis.”

Read on.

Goldman Sachs bans Trump donations from employees

But Clinton donations are fine

Goldman Sachs just set forward new rules that bans the company’s top employees from contributing to the Trump-Pence campaign, according to an article by Lucinda Shen for Fortune.

The rules began on September 1, and apply to the firm’s partners, the article states. More specifically, the rule does not allow the partners to donate to politicians running for state or local offices, or donate to state officials who are seeking federal office.

From the article:

The firm says the rules were meant to remove any implication of so-called “pay to play.” Four years ago, the bank paid $12 million to settle charges that a former Boston-based banker had picked up bond underwriting business in the state while working for and contributing funds to the campaign of a then Massachusetts state treasurer and governor-hopeful, Tim Cahill.

That would therefore prohibit contributions to the Trump-Pence since Republican Vice Presidential Candidate Mike Pence is the current governor of Indiana.

Coincidently, the rules don’t restrict donations to the Clinton-Kaine campaign. Democratic vice presidential nominee Tim Kaine is a U.S. Senator for Virginia, and not considered a local official under Goldman’s rules, according to the article.

Read on.

 

EXCLUSIVE: Security vulnerabilities discovered in FHA systems

Some of the systems used by the Federal Housing Administration’s single-family insurance program are vulnerable to security breaches, an investigation by the agency’s watchdog uncovered recently.

Details on the nature of the “vulnerabilities” are limited at this point; the Office of the Inspector General for the Department of Housing and Urban Development chose not to share the full results of its investigation with the public.

The only mention is a short description of the investigation and its methods posted on the OIG website.

Specifically, the HUD-OIG stated in the brief recap of its investigation that it “reviewed the general and application controls over the FHA’s Single Family Insurance System and Single Family Insurance Claims Subsystem as part of the internal control assessments required for the fiscal year 2015 financial statement audit under the Chief Financial Officer’s Act of 1990.”

Read on.