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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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...] 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 The MERS® Annual Independent Attestation has been replaced by an Annual Report of Quality Assurance Standards Compliance.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...] 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...] 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...] The Federal Housing Finance Agency filed suit last week against a dozen or so of the largest banks in America contending that the banks misrepresented the quality of mortgage securities they assembled and sold to Fannie Mae and Freddie Mac at the height of the housing bubble. The suit is seeking upwards of $30 billion dollars back from such banking institutions as Bank of America, JP [more...] The signs are all around regardless of what the national news economist and analyst are saying about the U.S. economy. The mortgage industry is on the rebound for a number of reasons and the economic outlook will change. A couple of years ago at the bottom of the mortgage crisis I wrote about my opinion on what it will take for the housing market to [more...] In mortgage lending, we appear to have come full circle, where buying and borrowing for a home is actually a privilege, not a right. Is the public aware? Do the Realtors care? Are the loan officers prepared for the changes? Licensing requirements and regulations point in that direction, and yet, we are still faced with the ever present: “but is this a good deal?” We all [more...] The Senate Committee on Banking, Housing & Urban Affairs held a hearing on recently addressing the mortgage servicing titled, “Housing Finance Reform: National Mortgage Servicing Standards.” Senate Banking Committee Chairman Tim Johnson (D-SD) said in his opening comments, “The housing recovery appears to have stalled in part because of widespread uncertainty in mortgage servicing.” “Borrowers aren’t certain that servicers are accurately evaluating them for modifications. Servicers [more...] Quality Mortgage Services (QMS), a provider of mortgage quality assurance and mortgage compliance solutions nationwide, announced today that its federal regulatory and custom foreclosure audit services fulfill the requirements for foreclosure audits as outlined by the Office of the Comptroller of Currency. More than two million homeowners hit with foreclosure in 2009 and 2010 will receive letters explaining their right to an independent audit review [more...] Since 2009 the FHA has taken 2,300-plus administrative actions against lenders and is showing no signs of slowing down. The agency took action against 1,600 lenders in 2010. The numbers for 2011 have not yet been released, however, we can expect higher numbers of administrative prosecuting actions against lenders this year because of the new mortgagee monitoring responsibility pushed down to sponsoring lenders of Sponsored [more...] Quality Mortgage Services (QMS), a provider of mortgage quality assurance and mortgage compliance solutions, reported today that attempts by some lenders to leverage fully automated QC software to meet compliance demands in the current environment will result in high risk of failure. The company’s position is based on a recently performed study of mortgage loan audits that revealed many serious compliance problems that cannot be [more...] If you have not noticed lately, there are a lot of lawsuits happening between government agencies that have oversight of big volume mortgage producers. Basically, mortgage bankers are being sued because of selling lemon loans. You know the type, those loans that break down, don’t work anymore and are high maintenance. Perhaps Consumer Reports need to feature mortgage lenders in their product survey? UBS and the [more...] |
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