Investments

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 when the New York Department of Financial Services began investigating the company’s relationship with Ocwen in 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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Judge rules that CFPB can investigate seller-financed home sales

Harbour Portfolio Advisors claimed agency did not have authority
The Consumer Financial Protection Bureau earned a big victory in court Thursday when the Court of Appeals for the District of Columbia Circuit ruled in favor of the CFPB in its fight against PHH. And that wasn’t the only positive result the CFPB got in a federal court this week. A federal judge also ruled that the CFPB can pursue an investigation into seller-financed home sales and the operations of Harbour Portfolio Advisors.
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SoFi to lock in $500 million investment led by Silver Lake

Online lender now valued at more than $4 billion
SoFi is at it again and reportedly nearing a deal to raise $500 million in fresh funds from an investor group led by private-equity firm Silver Lake. This marks another major investment for the online lender after its $1 billion in funding led by SoftBank back in 2015.
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Fannie Mae CEO: G-fee pricing is in the "right zone"

No one is complaining about the free stuff, either
One of the larger shifts this quarter, although profits remain flat, is earnings from guarantee-fees now outpace portfolio investments. In other words, Fannie Mae is now making more money off of business it is doing rather than business it once did.
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Freddie Mac CEO: 4 ways to turn around the supertanker

This is how to manage $2 trillion in assets
One thing that gets little coverage is how effective Freddie Mac CEO Donald Layton managed his team, which runs $2 trillion in assets. So, it seemed appropriate to find out his formula for retaining top staff and keeping the foot soldiers motivated. Layton puts it down to 4 ways they helped turn around this “supertanker.”
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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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