When will we see the next housing recession? Lead Analyst Logan Mohtashami shows you where to find red flags in economic data. With the purchase market becoming a primary emphasis for lenders in HousingWire sat down with Mike Darne to talk about credit trends in a purchase market and how that impact lenders' pipelines. This episode covers the one-stop shop brokerage model, things that brokerages can do to help counter margin compression and how to shield your real estate business in a changing market.
In another signal that the default mortgage business is shrinking , Walter Investment Management Corp. The company said that the servicing transfers are expected to take place in the first quarter of Worth facility and laying off employees. According to the CFPB, Residential Credit Solutions engaged in illegal practices when servicing loans that it acquired from other servicers. The CFPB order stated that the company, on a number of occasions, failed to honor trial loan modifications that consumers had entered into with their prior servicers.
Instead of honoring those previous agreements, Residential Credit Solutions allegedly insisted that the consumer re-prove that he or she was qualified. According to the CFPB, by refusing to honor previously agreed upon loan modifications, Residential Credit Solutions effectively set consumers back as though they had not received a trial modification.
According to the CFPB, by refusing to honor previously agreed upon loan modifications, Residential Credit Solutions effectively set consumers back as though they had not received a trial modification. Failed to honor in-process modifications : Some of the borrowers who had their mortgage loans transferred to Residential Credit Solutions were already in trial modifications where they were making reduced payments.
Instead, the company insisted that consumers re-qualify for the modifications. The company treated these consumers as if they were still in default, subjecting them to collection calls, late fees, and default and delinquency notices. Many consumers had their loans referred to foreclosure, and some eventually lost their homes.
Provided incorrect information : For the in-process modifications that Residential Credit Solutions failed to recognize, the company gave incorrect information to certain consumers about their unpaid balances, payment due dates, interest rates, monthly payment amounts, and delinquency statuses. Misrepresented to consumers that they had extra money in escrow and were due a refund : Servicers are required, with certain exceptions, to provide annual escrow account statements to consumers.
These statements include the amount of any surplus funds, which must be refunded to a consumer whose loan payments are current.
Forced consumers to waive certain rights to get a payment plan : Sometimes, the company offered a payment plan to consumers who fell behind in their payments.
But the company illegally required consumers to surrender certain legal rights in future foreclosures and bankruptcy protections as a condition of receiving the payment plan. Borrowers who receive payments will not be prevented from taking individual action on their claims as a result of this settlement, the CFPB said.
Engage in efforts to help affected borrowers preserve their home : For certain borrowers affected by its unlawful practices who were not foreclosed on, Residential Credit Solutions must convert in-process loan modifications into permanent modifications.
And it must engage in outreach, including telephone and mail campaigns and translation services to contact borrowers and offer them loss mitigation options. It must stop foreclosure processes for certain borrowers, if those are happening.
Honor prior loss mitigation agreements : Residential Credit Solutions must honor loss mitigation agreements entered by prior servicers, including in-process modifications, continue processing pending loss mitigation requests received in transfers, and review and evaluate pending loss mitigation applications. Residential Credit Solutions may not transfer loans in loss mitigation, in or out, unless all account-level documents and data relating to loss mitigation are provided to the new servicer by the date of transfer.
Make loss mitigation applications readily available : Residential Credit Solutions must make its loss mitigation application available to consumers at no cost by making it readily accessible on its website and providing it upon request to consumers. The application must identify all required documentation and information necessary to complete a loss mitigation application. Mammalian Brain Chemistry Explains Everything. Related Books Free with a 30 day trial from Scribd.
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