MERS® began sending notices immediately after the January 24, 2012 deadline extension for the Annual Report, to mortgage servicers for breach and failure to respond to the 2011 Annual Report notification from MERSCORP, Inc. Basically, if a servicer did not submit the MERS® Quality Assurance plan with the Annual Report on or before January 24, 2012, they received a notice. Mortgage servicers are warned in [more...]
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As we approach the MERS® dead line extension for the annual MERS® compliance review that was moved from December 31, 2011 to January 24, 2012, we are finding that there are many servicers waiting to the last minute to wrap up the year. Quality Mortgage Services continues to receive calls daily from servicers rushing in a panic to complete the MERS® QC audit. The servicer [more...] In analyzing factors regarding the slowness of the current Housing Recovery, one needs to look no further than the FDIC. This year brought with it a new and bitterly divided Congress, with more than 100 members new to the complex issues facing the real estate finance industry. It also brought about a fresh focus on the implementation of last year’s historic Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank), and the launch of that law’s newly-created regulator, the After the Obama [more...] When the Housing Urban and Development no longer approved brokers according to ML 2011-02, brokers were quick to seek a net-branch model to avoid disclosure of their yield spread premiums to the borrower on the HUD-1 Settlement Statement. By joining a net-branch, brokers had a completive advantage over sponsored brokers who had to disclose the yield spread on the HUD-1. The net-branch corporate structure was able [more...] On September 27, 2011, FHFA issued Alternative Mortgage Servicing Compensation, a discussion paper seeking public comment on two servicing fee structures. The first structure, which was proposed to FHFA by the Mortgage Bankers Association, would make only modest changes to the existing fee structure. It would require the servicer to set aside separate cash account within the MBS trust which would be a reserve for [more...] Mortgage servicers are now required to maintain servicing compliance and establish oversight with effective reporting that can provide an accountability of the effectiveness of the mortgage servicer’s compliance as set forth in the consent order. Along with the compliance and reporting, mortgage servicers are required to have a servicer compliance committee made up of a minimum of three directors. Two of the directors are required [more...] Since the consent order of the top 14 mortgage servicers, consultants and servicers have been trying to build a comprehensive action plan in order to meet the demands of the consent order published April 2011, Interagency Review of Foreclosure Policies and Practices. In order for mortgage servicer to get this going, the servicer must perform a self assessment in order for the mortgage servicing to [more...] When the mortgage meltdown occurred in 2008, the mortgage broker was the first hit by the wave of change struck by the mortgage industry and regulatory reform. In 2011, the mortgage servicers, the back side of mortgage industry, are having its day of reckoning. The mortgage industry will have several more years before mortgage professionals will refer to these past years of mortgage correction as [more...] The MERS® Annual Independent Attestation has been replaced by an Annual Report of Quality Assurance Standards Compliance. This Report is required from the Executive Sponsor for each Member Servicer or Subservicer each calendar year, and confirms: 1. Member has in place procedures designed to provide reasonable assurance that it has submitted to MERSCORP data for all MERS® System required and conditional reporting fields. 2. Member has conducted [more...] MERS® recently made some game changing announcements to it members which change the traditional procedures that are in effect now. These changes came to fruition as a result of member feedback that at the MERS® 2011 User Conference. After 2011, the annual attestation must come for a MERS QC auditor completely independent of your organization, and is due in the fourth quarter of each year. However, [more...] The Consumer Financial Protection Bureau (CFPB) recently in a press release outlined its initial approach to supervising mortgage servicers to ensure they comply with federal consumer financial protection laws. Reports by other federal agencies have indicated that, starting with the financial crisis, some servicers have failed to keep pace with an overall increase in mortgage delinquencies. Some reports found some servicers lost important documentation, experienced well-publicized problems with [more...] A major sensitive point of discussion of the Quality Assurance Subcommittee at the recent Mortgage Bankers Association Quality Assurance and Residential Underwriting Conference was the reinventing of servicing quality control. Some speakers indicated that technology firms have fallen short in updating the questioning standards for the quality control of servicing activities, processes, and procedures. Executives of one particular bank indicated that their servicing QC software was [more...] Appraisal Management Companies are the new kid on the block in terms of litigation involving foreclosures; however, I am guessing that they will quickly ascend to the veteran ranks alongside servicers and lenders. On September 21, 2011, TCF National Bank filed a complaint in federal court in Minnesota against Market Intelligence, Inc. TCF also sued LSI Appraisal, LLC, Lender Processing Services, Inc. and Fidelity National [more...] The Mortgage Bankers Association Residential Underwriting and Quality Assurance Conference in New Orleans there were discussions regarding loan denials and repurchase claims. Several heads of mortgage quality control and risk at large banking firms indicated that appraisals and values appeared to be one of the main problems with loan denials and repurchase claims. One of the key supporting reasons appeared to be a lack of relevant and accurate [more...] September and October are the months for QC professionals and the Mortgage Bankers Association as the big conferences ramp up as the year whines down. The many conferences have made networking receptions interesting as many share and vent on what is working and what is still broke. What is an absolute in the mortgage lending markets… the changing lending culture which is about loan quality [more...] Fannie Mae’s QC department stated that only 63% of the Sellers meet their standard for mortgage loan quality control. However, when evaluating mortgage QC reports of some lenders, their post closing QC report indicate a 1% or less loan defect rate. Fannie Mae is very suspicious of lenders who have very low loan defect rates. This is because the QC mortgage auditors are probably performing a [more...] One of the Fannie Mae’s systemic problems with lenders is 18% of initial loan delivery to Fannie Mae are missing core documentation. This raises interesting questions such as: Are some electronic document vendor technologies defective? At this point the answers are not clear however, I will place my money on the end [more...] This past week in New Orleans was a very productive week for those mortgage banking professionals who work in the quality control or quality assurance space. “The Week of Quality” included: the Mortgage Banking Operations Conference, Fannie Mae’s QC Vendor Summit, and the Mortgage Bankers Residential Underwriting and Quality Assurance Conference. Those who attended walked away with a wealth of information to take their organization [more...] Providing additional challenges and demands to the mortgage industry of late is word on the street that Banks in the U.S. are finding themselves overwhelmed by a refinancing boom as a result of historically low interest rates. It appears the lending logjam is a result of the banks firing thousands of experienced mortgage workers between November 2010 and February 2011. It seems that now they find [more...] |
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