Same old song. This time to the tune of $52.4 million paid by Regions Financial Corporation of Birmingham, AL to HUD settling an action brought under the False Claims Act by the Department of Justice (DOJ). Under this settlement, Regions acknowledged it made and certified FHA insured loans that did not meet all required underwriting criteria. As a result, FHA-insured…
UBS Real Estate Securities suffered a major setback recently when US District Judge, Kevin Castel, ruled on a breach of warranties by UBS in connection with securities backed by loans sold to U.S. Bank. In the suit, US Bank, acting as trustee, is suing UBS for damages of more than $2 billion (Defective Loans). That could have paid for quite…
Some now believe that independent mortgage lenders cannot survive strictly by originating mortgage loans. They believe such lenders need to expand their business lines to include other financial products desired and needed by consumers. (Survival) For years, large Banks have moved in and out of mortgage lending depending on rates and risks, developing and offering other financial products and services…
We hear this quite often but it is so true when it comes to the future of mortgage lending. Aside from the changes resulting from regulatory and agency requirements, the industry is evolving quickly into the digital age. What might the future bring? National Mortgage News, as part of its 40th Anniversary, has made some pretty bold predictions. In case…
According to the Urban Institute, a Washington DC based “think tank”, the current low mortgage default rates could indicate the current credit standards make it too difficult for many consumers to get their shot at the American Dream. (Mortgages) Why is it that lenders are the ones to get the blame when the homeownership rate is not where it is…
Way too many years ago, when I first started in the mortgage business, the emphasis was still on loan originations. But, it was also on the loan’s ongoing performance. Lenders originated but most also serviced the loans they made. Independent Mortgage Lenders and some Banks originated government loans that were sold into Ginnie Mae pools. Other Banks and S &…
