CFPB doubles down against marketing services agreements

CFPB doubles down against marketing services agreements

Underscores that MSAs could constitute mortgage kickbacks

Did Sen. Corker violate SEC rules, Senate ethics by telling investors to short GSEs?

Made questionable remarks on CNBC regarding stocks

House passes bipartisan TRID grace period bill 303-121

Next comes Senate, then looming threat of veto from White House

Morgan Stanley, Goldman Sachs pay $557 million to end foreclosure reviews

Morgan Stanley (MS) and Goldman Sachs (GS) became the latest banks to sign an accord with federal regulators to end the long process of reviewing past foreclosures for document processing errors.

The two investment banks agreed to pay $557 million in cash payments and other assistance to borrowers in exchange for ending costly and inefficient foreclosure reviews, according to the Federal Reserve.

Regulators signed similar agreements with ten other mortgage servicers this month.

As part of a deal reached with the Office of the Comptroller of the Currency and the Federal Reserve, Goldman Sachs and Morgan Stanley will make $232 million in direct payments to eligible borrowers and provide $323 million in loan modifications, principal forgiveness and other assistance.

"More than 220,000 borrowers whose homes were in foreclosure in 2009 and 2010 with the former subsidiaries of Goldman Sachs (Litton Loan Servicing LP) and Morgan Stanley (Saxon Mortgage Services, Inc.) will receive cash compensation under the agreements in principle," the Federal Reserve added.

Borrowers who are eligible for relief could receive anywhere from hundreds of dollars up to $125,000, depending on what type of servicing errors were raised.

Recent Articles by Kerri Panchuk

Comments powered by Disqus