Servicing

Ocwen reaches $223 million settlement with California over servicing violations

Mortgage servicing restrictions lifted, can now acquire California MSRs
Ocwen Financial announced late Friday that it reached a $223 million settlement with the California Department of Business Oversight, ridding itself of the restrictions that hampered its mortgage business in California for more than two years. The settlement includes a cash payment of $25 million. Ocwen is also required to provide an additional $198 million in debt forgiveness.
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Altisource Portfolio Solutions to pay $32 million to settle class action suit over Ocwen relationship

Investors sued when stock plummeted after NYDFS investigation
Altisource Portfolio Solutions revealed recently that the CFPB is looking into the company’s relationship with Ocwen Financial. But that wasn’t the only Ocwen-related revelation of the week. The company also reached a $32 million settlement in a class action lawsuit brought by Altisource investors who claimed financial harm after Altisource’s stock plummeted after the New York Department of Financial Services began investigating the company’s relationship with Ocwen in early 2014.
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Freddie Mac selling off $759 million in non-performing loans

First NPL sale of 2017
Recently, Fannie Mae announced its first non-performing loan sale of 2017, stating that it plans to sell 10,000 delinquent loans with a total unpaid principal balance of $1.76 billion from its portfolio. Fannie Mae’s fellow government-sponsored enterprise announced a NPL sale of its own on Friday.
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Goldman Sachs: Mortgage interest rates will rise to 5.5% by 2019

Current 30-year mortgage rate is approximately 4.15%
The most recent data from Freddie Mac shows that the average interest rate for a 30-year, fixed-rate mortgage is around 4.15%, but interest rates are going to increase by a significant margin over the next few years, analysts from Goldman Sachs said in a new report. Here are the details.
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White House spokesperson: Trump believes CFPB is "unaccountable"

WSJ reports that President Trump disagrees with Court of Appeals ruling
Given the Trump administration’s recent maneuvering to fire Consumer Financial Protection Bureau Director Richard Cordray, it’s probably not a surprise that President Donald Trump disagrees with the U.S. Court of Appeals for the District of Columbia Circuit’s decision to rehear a challenge to the CFPB’s constitutionality.
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Altisource Portfolio Solutions reveals CFPB probe into relationship with Ocwen

Received letter about potential enforcement action
The Consumer Financial Protection Bureau is looking into the relationship between Altisource Portfolio Solutions and Ocwen Financial, Altisource revealed on Thursday. According to Altisource, the CFPB is “considering a potential enforcement action against Altisource relating to an alleged violation of federal law that primarily concerns certain technology services provided to Ocwen.”
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Court of Appeals agrees to rehear CFPB case, agency to fight "unconstitutional" ruling

Full court will rehear PHH case
If President Donald Trump wants to fire Consumer Financial Protection Bureau Director Richard Cordray, he’s going to have to wait a little longer to do it, as the U.S. Court of Appeals for the District of Columbia Circuit ruled Thursday in favor of the CFPB. The ruling allows the embattled agency to defend the constitutionality of its leadership structure.
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Servicers: Here’s how you can control mounting operation costs

How to use technology to manage costs
Servicers face mounting operational costs due to increasing compliance. But while compliance costs are necessary, there are other ways to use technology to reduce inefficiencies in the process. A panel of experts at MBA’s National Mortgage Servicing Conference in Dallas explain how technology can help.
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Senate Republicans unveil bill to rein in CFPB spending

Want agency brought under Congressional appropriation process
The sharks swimming around the Consumer Financial Protection Bureau now appear to smell blood in the water. Now, those who defend the CFPB face another battle, as several Senate Republicans unveiled a bill this week that would give Congress oversight of the CFPB.
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