Bank of America announced it's on track to fulfill consumer relief requirements as part of the national mortgage settlement within the first year of the three-year agreement. So far, the bank has completed or approved $15.8 billion in consumer relief for about 164,000 homeowners as of September 30. One form of consumer relief offered through the settlement is first-lien principal forgiveness, which BofA has offered to 30,000 customers, leading to $4.75 billion in principal reductions.
Read More »Mortgage Daily Releases Q3 List of Top 10 Servicers
Mortgage Daily released a list of the top 10 servicers based on portfolio size as of September 30. However, Mortgage Daily says spots 4-6 on the third quarter list could change due to recent acquisitions from Ocwen Financial Corporation, Nationstar Mortgage, and Walter Investment Management. For now, top servicers on the list were Wells Fargo, Bank of America, Chase, Citigroup, and U.S. Bank. Ocwen, which is not on the top 10 list, is expected to move into a top five position.
Read More »BofA and Auction.com Partner to Offer Short Sale Pilot Program
Bank of America announced a partnership with Auction.com to introduce a pilot program for short sales. The pilot aims to assist homeowners and agents with generating offer activity. Through Auction.com, marketing efforts will be broadened to reach more potential buyers.
Read More »States Divert Nearly Half of Settlement Money Earmarked for Housing
Less than half of the states' $2.5 billion from the national mortgage servicing settlement is being used for housing initiatives as intended, according to Enterprise Community Partners. It's been six months since a federal judge approved the agreement between the nation's five largest mortgage servicers and state and federal officials, and Enterprise says to date, states have announced housing- and foreclosure-related plans for $966 million of their settlement share; $988 million has been diverted to states' general funds or non-housing uses; and $588 million has yet to be allocated.
Read More »Oklahoma Residents First to Receive Mortgage Settlement Payments
Oklahoma Attorney General Scott Pruitt has issued the first borrower payments resulting from settlements with the nation's five largest mortgage servicers over faulty foreclosure processing. Oklahoma families who were subject to the servicers' ""unfair and deceptive practices ... following the financial crisis,"" can expect to receive their checks soon, Pruitt said. Oklahoma was the only state to craft its own agreement with Bank of America, Citi, JPMorgan Chase, GMAC/Ally, and Wells Fargo.
Read More »BofA Reduces $4.75B in Principal in 5 Months
As part of the agreement under the national mortgage settlement, Bank of America has completed or approved more than $4.75 billion in principal reductions on first mortgages, with the average principal reduction exceeding $150,000. Through the bank's principal reduction program, 30,000 homeowners have been approved for a trial modification or received a permanent modification as of the end of September.
Read More »Major Servicers Report Implementing 320 Servicing Standards
The nation's five largest mortgage servicers had 180 days to implement the 320 servicing standards outlined in the settlement reached with the U.S. Department of Justice and 49 state attorneys general. The standards address such areas as borrower communication, single point of contact, training for loss mitigation staff, and document execution related to foreclosure actions. And as described by the attorneys general's own negotiating committee, to put all the required changes in place involved ""a massive undertaking.""
Read More »BofA Reaching Out to Select Borrowers for 2nd Lien Forgiveness
As part of Bank of America's deal in the national mortgage settlement, the bank announced Friday it plans on offering full forgiveness for second liens to certain homeowners. The bank is in the process of mailing about 150,000 letters to pre-qualified homeowners with offers to wipe out their second liens.
Read More »Did Fannie Mae Pay Too Much in BofA Deal?
As part of its High Touch Servicing Program, Fannie Mae entered a deal with Bank of America in July 2011 to purchase mortgage servicing rights (MSR) for about 384,000 high-risk loans the GSE guaranteed. The Federal Housing Finance Agency Office of Inspector General (FHFA-OIG) recently reviewed the deal and the program in general.
Read More »BofA Reaches Settlement to Resolve Disability Discrimination Suit
The Justice Department announced Thursday that it has reached a settlement with Bank of America over allegations of loan discrimination against disability income recipients. The bank was accused of violating the Fair Housing Act and the Equal Credit Opportunity Act by asking disabled mortgage loan applicants to provide letters from their doctors to document the income they received from Social Security Disability Insurance (SSDI).
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