Latest Mortgage News Headlines

Red Flag Alert

With less than a month until mandatory implementation, service providers are lining up to help lenders comply with the new Red Flags Rules. Other mortgage compliance activity includes opposition remains fierce to proposed Real Estate Settlement Procedures Act changes. (Oct. 7)

Credit Trends Morph

A new report shatters the conventional wisdom that borrowers with a mortgage do a better job paying other types of credit. (Oct. 7)

U.S. Subprime Losses Projected at $1.4 Trillion

Global turmoil brought the financial markets to their knees last month, according to a new report that estimates global losses from the U.S. mortgage meltdown will now reach $1.4 trillion. (Oct. 7)

CitiMortgage Reduces Broker Business

CitiMortgage is slashing the number of mortgage brokers it does business with -- leading to hundreds of layoffs. Business from a smaller and more productive group of brokers will ultimately be channeled through offices in Missouri and Texas. (Oct. 7)

Broker Share, Loan Profits Decline

A new trade group report indicated broker share fell last year as retail and correspondent share rose. Mortgage bankers saw losses climb more than $500 for each loan they originated, though servicing profits per loan nearly doubled. (Oct. 7)

Lack of FHA Kills Ohio Firm A once-booming mortgage company that specialized in subprime refinances has shut down. The Ohio-based company's demise appeared to be tied to its lack of government loan programs. (Oct. 7)

BoA Originations Dive

If Bank of America Corp.'s originations are any indication, the latest quarter was a disaster for U.S. mortgage lenders. (Oct. 6)

Bad Loans, Bad Investments

Five Southern California mortgage brokers have been charged by the Securities and Exchange Commission with allegedly placing borrowers in unaffordable subprime loans to finance unsuitable securities -- earning commissions every step of the way. (Oct. 6)

Servicing Employees Eliminated

Popular Inc. continues to dismantle its U.S. mainland operations, with more than 160 servicing employees receiving pink slips. (Oct. 6)

Bailout Satire Mortgage Lending has reached the pinnacle of pop culture. A skit on the latest Saturday Night Live provided a humorous but comprehensive overview of the mortgage crisis -- highlighting the roles of borrowers, Democrats and the former leaders of Golden West Financial Corp. The Sandler featured in this skit, however, was not Adam. (Oct. 6)

Mother of All Settlements

Bank of America Corp. will spend mortgage than $8 billion to settle charges of predatory lending at Countrywide Financial Corp. (Oct. 6)

Over 9,000 Mortgage Layoffs in Q3

Employers slashed more than 9,000 mortgage jobs in the third quarter. (Oct. 6)

University of Mortgage Leads

One new lead service delivers live telephone calls and only charges for the lead if the call lasts more than 30 seconds. Other advancements in mortgage lead generation include guaranteed mortgage leads and a letter campaign for self-generated leads. (Oct. 3)

Consumer Bankruptcies Down

Monthly bankruptcy filings by consumers fell. (Oct. 3)

Bailout Bill Now Law Legislation authorizing the U.S. Treasury Department's purchase of $700 billion in mortgage assets has been signed into law by President Bush. (Oct. 3)

Fannie Cancels Adverse Delivery Fee Increase

Less than two months after doubling its adverse market delivery charges, Fannie Mae is reversing its decision. (Oct. 3)

Mortgage Jobs Off, Brokers Up

An increase in the number of brokers wasn't enough to push overall mortgage employment higher in a monthly government report. (Oct. 3)

Merged Wells-Wachovia Could Challenge No. 1

Wachovia Corp. has scrapped a deal to be acquired by Citigroup Inc. and will instead be acquired by Wells Fargo & Co. The W&W merger creates a formidable challenge to Bank of America Corp.'s potential standing as the No. 1 residential originator. (Oct. 3)

Originating H4H Loans

Guidelines have been issued for refinancing delinquent and current exotic loans using a government-insured program created under the recently passed housing legislation. Lenders that utilize the program will be held accountable for fraudulent appraisals. (Oct. 2)

Reverse Mortgage Updates

Counselor fee payments have been prohibited and loan limits are increasing on reverse mortgages. (Oct. 2)

Pres Candidate Sued Mortgage Lender A front-running presidential contender has previously filed a class action lawsuit against a mortgage lender that allegedly discriminated against African Americans. While an attorney with a Chicago law firm, Democratic candidate Barack Obama took on a national bank accused by his client of mortgage discrimination and redlining. Attorneys on the other side of the case said it wasn't exactly a victory for the respected senator from Illinois. (Feb. 23, 2007) read full story Countrywide Forecloses on Wrong Property After mistakenly foreclosing on the wrong Nevada property and disposing of all the personal belongings, the homeowners sued Countrywide Home Loans and were awarded $3 million. But the state's Supreme Court has reduced that judgment by more than half. The Nevada Supreme Court cut in half an award for damages in a wrongful foreclosure case. The court agreed with Countrywide's statutory interpretation arguments, and with its arguments against allowing plaintiffs to recover twice for a single wrong. (Sept. 29) read full story Bailout Satire Mortgage Lending has reached the pinnacle of pop culture. A skit on the latest Saturday Night Live provided a humorous but comprehensive overview of the mortgage crisis -- highlighting the roles of borrowers, Democrats and the former leaders of Golden West Financial Corp. The Sandler featured in this skit, however, was not Adam. (Oct. 6) FHA Changes Effective Today The timer on the home page of the Nehemiah Program's Web Site has expired -- indicating down payment assistance funded by home sellers is no longer available on loans insured by the Federal Housing Administration. But that isn't the only change on FHA loans effective Oct. 1. (Oct. 1) Mark-To-Market Guidance Issued Guidance issued today on mark-to-market accounting was cheered by bankers. (Sept. 30)