Regulation

What Gay Marriage Ruling Means for Mortgages

The Supreme Court decision making same-sex marriage legal nationwide could boost mortgage demand as it provides gay and lesbian couples with more financing opportunities and stronger joint property rights.
“In the short run, it will increase demand for loans because more couples are going to get married,” said Shoshana Grossbard, an economics professor at San Diego State University who has authored research on gay and lesbian couples.
Married couples find mortgage credit more accessible than single people, she said. “It’s much easier for a married couple to buy property and get a mortgage than two singles,” Grossbard said.
In a survey of lesbian, gay, bisexual and transgender consumers published in May by the National Association of Gay and Lesbian Real Estate Professionals, 81% of respondents said a Supreme Court ruling for marriage equality would make them feel “more fiscally protected and confident,” which the trade group identifies as […]

Delayed TRID Deadline Was a Close Call for Lenders

13.07.2015
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Were it not for a slip-up at the Consumer Financial Protection Bureau, employees in the mortgage business might have had to forfeit their summer vacations.

New mortgage disclosure rules from the CFPB were set to take effect Aug. 1 and many lenders were far from being ready. Luckily for them, the CFPB was forced to extend the deadline by two months after the agency missed its own deadline for filing paperwork with Congress.

As of two months before the deadline, nearly 80% of banks were still awaiting technology upgrades from their vendors, according to the American Bankers Association. Even if the upgrades are made quickly, banks still need time to test and learn the new systems, says Bob Davis, an executive vice president at the ABA.

“Full confidence in the new systems may not come until months after the effective date,” he says.

The change the CFPB is making […]

Citi Failed Mortgage Monitor Test, Implemented Fix

10.07.2015
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Citigroup failed one of the monitoring tests performed as part of the national mortgage settlement, according to new reports filed by NMS monitor Joseph Smith A. Jr.

During the third quarter of 2014, Citigroup failed Metric 30, which assesses written communication with borrowers whose loan modification applications were declined because of missing or incomplete documents. Citigroup was the only financial institution to fail a test during the third and fourth quarters of last year, according to the monitor’s report.

Bank of America, JPMorgan Chase, Green Tree and Wells Fargo all passed their tests during this period of time, Smith said.

Following its failed test, Citigroup submitted a Corrective Action Plan for the metric, which Smith approved. After it was implemented, Smith said that the fourth quarter’s round of testing showed that the problems were cured.

“Citi remains committed to fulfilling the terms of the national mortgage settlement for […]

OCC Crackdown Shows Continued Failures in Mortgage Servicing

26.06.2015
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Four years after the nation’s largest mortgage servicers were ordered to clean up their foreclosure processes, many are still falling short of their obligations.

Six banks, including JPMorgan Chase, U.S. Bancorp and Wells Fargo, have not fully complied with consent orders related to the independent foreclosure review that began in 2011, the Office of the Comptroller of the Currency said Wednesday. The servicers were cited for a variety of issues including failing to respond to borrower requests for loan modifications, not making a good-faith effort to prevent foreclosures and not having compliance systems in place to track their progress.

The punishment for these infractions was harsh: Wells Fargo, the largest U.S. lender, and HSBC Holdings, Europe’s largest bank, are prohibited from acquiring mortgage servicing rights, entering into new servicing contracts or offshoring servicing activity until the consent orders are terminated. Four banks – JPMorgan in New […]