Servicing

Urban Institute to FHA: Fix your reverse mortgage servicing problems

Stop transferring servicing rights, it’s costing millions
Policymakers have long struggled with how to fix the FHA's reverse mortgage program to prevent it from draining the agency's mortgage insurance fund. But researchers are the Urban Institute have an idea: Fix the program's servicing problems, which they call "one of the biggest drivers of losses in the HECM program." Here's what they suggest.
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Freedom Mortgage to acquire RoundPoint Mortgage Servicing

Merger to create 7th largest U.S. servicer
Freedom Mortgage and RoundPoint Mortgage Servicing are planning to merge, the companies announced Friday. The deal will make RoundPoint a wholly owned subsidiary of Freedom and boost its servicing portfolio to more than $300 billion. Click the headline to read more.
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HUD Secretary Ben Carson apparently doesn't know what an REO is

Under questioning from Rep. Katie Porter, Carson confuses REO with Oreo
HUD Secretary Ben Carson had a bit of a rough day on Tuesday. Carson appeared on Capitol Hill to testify before the House Financial Services Committee, and during questioning from the committee member with the most housing knowledge, turned himself into a punchline by confusing a common housing industry term with a cookie. Yes, you read that right.
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New York Court approves representation for mortgage borrowers in Ditech bankruptcy

Ditech loses motion to dismiss consumer committee
The Bankruptcy Court of the Southern District New York denied Ditech’s motion Friday to dismiss the formation of a consumer committee to protect the interests of mortgage borrowers who have loans with Ditech or its subsidiaries – including those who have reverse mortgages with its subsidiary Reverse Mortgage Solutions – ensuring these borrowers will not suffer too great a loss as the mortgage giant restructures.
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Fannie Mae and Freddie Mac are refinancing fewer mortgages than at any point since the crisis

Where have all the refis gone?
Recently released data from the Federal Reserve Bank of New York’s Center for Microeconomic Data revealed that the first quarter of this year was the mortgage business’ worst quarter in more than four years, but a deeper dive into the data shows that on the refinance side of things, it may have been the worst quarter since the financial crisis.
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Celink names Robert Sivori new chairman, CEO

Longtime reverse mortgage exec to head HECM subservicer
Celink, the largest subservicer of reverse mortgages in the U.S., announced that Robert Sivori will take over as its new chairman and CEO. The HECM industry veteran is credited with building one of the strongest and most robust reverse servicing platforms.
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How expertise-on-demand can improve quality control for servicers

Outsourcing to a skilled third party provides flexibility and consistency
Loan servicers have to navigate a continuously changing mortgage landscape. New regulatory requirements, turnover of experienced talent and other factors are all making the mortgage servicing business more turbulent than ever. But perhaps the biggest challenge, especially for small, growing and non-bank servicers, is ensuring that quality control is maintained even when new demands emerge.
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CFPB claims debt collection firm Forster & Garbus robo-sued thousands on behalf of Citibank, Discover, others

Attorneys allegedly reviewed cases for only minutes before signing off on lawsuits
During the foreclosure crisis, a number of lenders, servicers, law firms, and others engaged in a practice where employees basically rubber-stamped thousands of foreclosure cases without reviewing any of the relevant details. That practice came to be known as robo-signing. Now, a new lawsuit from the CFPB sheds light on a similar practice that apparently exists within the debt collection industry – let’s call it "robo-suing."
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