News

CFPB Director on the Ocwen Enforcement Action

May 12, 2017

From CFPB Director Richard Cordray

Today the Consumer Financial Protection Bureau is filing a lawsuit against Ocwen, one of the nation’s largest nonbank mortgage servicers. We are seeking relief to compensate consumers for years of systemic and significant errors throughout the mortgage servicing process, which cost some of them their homes. We allege that Ocwen calculated loan balances improperly, misapplied borrower payments, and botched escrow and insurance payments. We believe Ocwen failed to properly investigate and fix these problems when people formally complained, and it illegally foreclosed on borrowers.

[Read More]

“The CFPB Just Sued [Ocwen], But Indicted Itself”

May 12, 2017

From David Dayen at The Nation:

In December 2013, the Consumer Financial Protection Bureau and 49 states issued a $2.1 billion consent order against Ocwen, one of America’s largest mortgage companies, for “violating consumer financial laws at every stage of the mortgage servicing process.” Three and a half years later, the CFPB sued Ocwen in federal court for, well, violating consumer financial laws at every stage of the mortgage servicing process.

Why are we here again? Why did Ocwen continue to harm thousands of borrowers, years after first being caught?

[Read More]

MIT Sloan: Was there ever a subprime crisis?

January 9, 2017

Fascinating read from MIT Sloan, challenging a central assumption of the housing crisis:

While all types of people participated in the crisis, borrowers defaulting on bigger mortgages were responsible for a greater dollar amount in defaults. The researchers found that the top quintile of borrowers by income were responsible for 13 percent of delinquent mortgage debt in 2003. That share increased to 23 percent by 2006. Meanwhile, the bottom quintile of borrowers saw their share of delinquent mortgaged debt drop from 22 percent in 2003 to 11 percent in 2006.

[Read More]

Recent Articles

The Failure of Trustees to Diligently Pursue Foreclosures

By Lynn Szymoniak November 13, 2017

Trustees & Servicers are destroying shareholder value by acting against behavior defined in the PSAs for their own private benefit. Agency problems continue to incentivize cheap, fraudulent document management processes and inefficiency over investor value.

In over 30% of the cases examined, the trustees did not begin foreclosure actions until more than six months after the loan default dates.

In 85% of the cases examined, the trustees filed the foreclosure complaints with an allegation that the original notes had been lost, stolen or destroyed.

The courts dismissed nearly 20% of the cases for lack of prosecution after the trustees failed to take any action within twelve months.

[Read More]

Gillis v. Deutsche Bank

By The Housing Justice Foundation May 12, 2017

The Most Outrageous Trial Court Abuses, The Most Determined Homeowner, The Best Damn Appellate Brief.

 … [Read More]

Who is Wilbur Ross?

By Lynn Szymoniak November 25, 2016

On Thanksgiving day, President-Elect Trump announced that he would name Wilbur Ross as Secretary of Commerce.

Wilbur Ross was described in new reports as a “billionaire investor” who was also known as the “king of bankruptcy.” Ross was famous for buying and selling companies that had hit hard times and filed for bankruptcy.

Ross, 78 years old, was a big financial contributor to the Trump campaign. His wealth was estimated to be $2.9 billion by Forbes magazine.

One of the companies Ross acquired through bankruptcy was American Home Mortgage Servicing, Inc. (“AHMSI”). In August 2007, American Home Mortgage, the 10th … [Read More]

NOVASTAR FINANCIAL FILES FOR BANKRUPTCY

By Lynn Szymoniak August 28, 2016

 

Novation Companies, formerly known as NovaStar Financial, a company that made over $11 billion in mortgage loans that failed at very high rates during the housing crisis, filed for bankruptcy court protection in Baltimore on July 20, 2016.

NovaStar was a major participant in mortgage-backed securities. NovaStar created its first mortgage-backed trusts in 1997 and continued making trusts in 1998, 2000 and from 2001 through 2003. In 2004, NovaStar made four trusts, each with loan balances of over $1 billion:

Series 2004-1:  $1,727,250,100

Series 2004-2:  $1,374,800,100

Series 2004-3:  $2,156,000,000

Series 2004-4   $2,468,750,000

 

In 2005, NovaStar created four more … [Read More]