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Servicing

SIGTARP Busts Bogus California Loan Mod Biz

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The Office of the Special Inspector General for the Troubled Asset Relief Program (SIGTARP) has announced that federal agents arrested three defendants who worked at Orange County, Calif., businesses that allegedly offered bogus loan modification programs to financially distressed homeowners. As a result of the fraudulent scheme allegedly run as U.S. Homeowners Relief and several related entities, hundreds of financially distressed homeowners across the United States lost millions of dollars, and many victims also lost their homes in subsequent foreclosure proceedings.Click to continue

CFPB and FTC Target Fraudulent Mortgage Relief Operations

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The Federal Trade Commission (FTC) has taken action against six mortgage relief operations charging that defendants preyed on distressed homeowners by misrepresenting that they typically could lower homeowners' mortgage payments and interest rates or prevent foreclosure, and illegally charging advance fees. In each case, the FTC has sought an order stopping the illegal practices and freezing the defendants' assets pending the outcome of the litigation.Click to continue

Smith Releases Intial Report Regarding Chase RMBS Settlement

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Joseph A. Smith Jr. has released his Initial Report as Monitor of the JP Morgan Chase residential mortgage-backed securities settlement (Chase RMBS Settlement). On Nov.Click to continue

The Long and Short: The Business of Short Sales ... Two "Fixes" to Use for Past Short Sellers Who Receive a Foreclosure Code on Past Short Sale Credit

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Past short sellers who are now eligible to re-enter the housing market again are stunned to learn that their past short sale is credit coded as a foreclosure. The problem is typically seen for the first time in both Fannie Mae and Freddie Mac automated underwriting systems (AUS). Fannie Mae's Desktop Underwriter (DU)/Originator (DO) notates in the findings which account is flagged as a foreclosure.Click to continue

June Foreclosure Activity Hits Lowest Point Since 2006

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RealtyTrac released its Midyear 2014 U.S. Foreclosure Market Report, which shows a total of 613,874 U.S. properties with foreclosure filings—default notices, scheduled auctions and bank repossessions—in the first half of 2014, a 19 percent decrease from the previous six months and down 23 percent from the first half of 2013. The report also shows that 0.47 percent of all U.S. housing units (one in 214) had at least one foreclosure filing in the first six months of the year.Click to continue

California to Get $100 Million-Plus in Historic Citi Settlement

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California State Attorney General Kamala D. Harris, along with the U.S. Department of Justice and state partners, have announced a settlement with Citigroup Inc. to resolve federal and state civil claims related to Citigroup’s conduct in the packaging, securitization, marketing, sale, and issuance of residential mortgage-backed securities prior to Jan. 1, 2009.Click to continue

CFPB Offers Clarification on Heirs Losing Homes

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The Consumer Financial Protection Bureau (CFPB) is issuing an interpretive rule to clarify that when a borrower dies, the name of the borrower’s heir generally may be added to the mortgage without triggering the Bureau’s Ability-to-Repay (ATR) rule. This clarification will help surviving family members who acquire title to a property to take over their loved one’s mortgage, and to be considered for a loan workout, if necessary, to keep their home.Click to continue

Mortgage Servicer Ocwen Supports HAMP Extension

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Ocwen Financial Corporation has announced its support for Treasury Secretary Jack Lew's recent announcement that the Home Affordable Modification Program (HAMP) is being extended through 2015 and supports his call for the reauthorization of the Mortgage Forgiveness Debt Relief Act (the Debt Relief Act).Click to continue

A Reversal of Fortune: Foreclosure Starts Rise by 9.5 Percent in May

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The data and analytics division of Black Knight Financial Services has released its latest Mortgage Monitor Report, looking at data as of the end of May 2014. An analysis of the month’s mortgage performance data showed that—in a reversal of an eight-month trend—foreclosure starts increased by 9.5 percent in May. However, as Kostya Gradushy, Black Knight’s manager of Loan Data and Customer Analytics points out, this increase must be seen in the proper context.Click to continue