The CFPB and New York attorney general together fined debt collectors more than $60 million for illegal collection practices in a recent enforcement action.
Expiration of the GSE “patch” will shift more risk to private securities and away from Fannie and Freddie. But, according to CoreLogic, dismantling the loophole will impact millennial borrowers and retirees.
MBA worries that if the GSE patch expires without any corresponding reforms to "preserve access to credit," the residential mortgage market will be disrupted...
The patch – a byproduct of the Dodd-Frank Wall Street Reform Act – allows the GSEs to buy residential loans where the debt-to-income ratio exceeds the 43% cap.
A federal judge approved a fair servicing lawsuit against Bank of America and Safeguard Properties based on disparate-impact theory. But the fate of the suit is still uncertain because of inconsistent case law.
Earlier this year, Wells Fargo offloaded roughly $20.7 billion in Ginnie servicing rights. The buyers? A bank and a nonbank. Meanwhile, the Equifax data hack will cost upwards of $700 million in settlement costs.
Equifax, while agreeing to the settlement, denied the charges in a recent filing with the Securities and Exchange Commission: “The company’s participation in the consumer settlement does not constitute an admission by the company of any fault or liability, and the company does not admit fault or liability," the vendors said.
Banks and other lenders typically hire third-party collectors to recoup debt or sell the accounts to debt buyers. There are approximately 9,330 debt collectors/buyers in the U.S., said the bureau.
“The proposal we are considering would remove one potential obstacle IDIs [independent depository institutions] face in providing mortgage credit to homeowners,” said FDIC Chairman Jelena McWilliams.