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Tag Archives: Loan Repurchases

Ally Financial Reports $1.1B Profit for 2010

Ally Financial, the parent company of GMAC Mortgage, said Tuesday that it brought in net income of $1.1 billion for the full-year 2010, a sharp turnaround from the $10.3 billion net loss recorded for 2009. During the fourth-quarter period of last year, the company posted a profit of $79 million, compared to a net loss of $5 billion for the fourth quarter of 2009. The company's financial sheet turned from red to black largely due to gains in its mortgage operations.

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MBA Sees 36% Falloff in Mortgage Production in 2011

The Mortgage Bankers Association (MBA) released its market outlook to the media on Wednesday. The trade group's economists are expecting mortgage lending to shrink by 36 percent this year. They project originations -- including loans for home purchases and refinancing -- to total $966 billion in 2011, compared to $1.5 trillion in 2010. If MBA's forecast holds true, it will be the mortgage industry's poorest showing since 1997.

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Bank of America Loses $2.2B in 2010

The nation's largest bank reported this morning that it lost $2.2 billion in 2010. During the fourth-quarter period, Bank of America posted a net loss of $1.2 billion, which included a goodwill impairment charge of $2.0 billion in its home loans and insurance division. Had it not been for this charge, the company says it would have earned $756 million in the fourth quarter. The company called 2010 a year of ""necessary repair and rebuilding."" Bank of America is the only one of the 'Big Four' to report a loss.

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StellarOne Resolves Repurchase Claims With Primary Mortgage Investor

Lenders across the country are facing demands from mortgage investors to buy back faulty loans. Analysts praised Bank of America's settlement with the GSEs earlier the month for setting a precedent that other banks could follow to reconcile with investors, but some community lenders are already ahead of the game. StellarOne Corporation in Virginia says it has reached an agreement with one of its primary mortgage investors to resolve repurchase and indemnification claims to the tune of $1.45 million.

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MDA Lending Solutions Launches Fraud-Reducing Suite for Lenders

MDA Lending Solutions has launched a suite of products to help customers satisfy Fannie Mae's Loan Quality Initiative (LQI) recommendations and reduce mortgage fraud. According to the company, its new LoanShield suite enables clients to identify suspicious activity, protect themselves against repurchase claims, and lower the chance of mortgage fraud-related issues impacting loan performance.

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Bank of America Agrees to $3B Settlement with Fannie and Freddie

Fannie Mae and Freddie Mac have reached an agreement with another lender to cover repurchase claims from alleged faulty underwriting standards in origination. Bank of America announced Monday that it paid a nearly $3 billion settlement to Fannie Mae and Freddie Mac on the last day of 2010 to cover repurchase claims from the two GSEs. According to BofA, the settlement resolves ""substantial legacy issues"" in the best interest of its shareholders, and the company says it is committed to putting such issues in its rearview mirror.

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Ally Financial Reaches $462M Settlement with Fannie Mae

Ally Financial announced that its mortgage unit, Residential Capital (ResCap), and some of its subsidiaries have reached an agreement with Fannie Mae to resolve potential repurchase exposure for breaches in selling representations and warranties. The $462 million settlement releases ResCap and its subsidiaries from liability related to about $292 billion in principal unpaid balances. It covers loans serviced by GMAC Mortgage and any mortgage-backed security that Fannie Mae purchased prior to the settlement.

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CoreLogic Credco Product Helps Lenders Avert Loan Repurchases

CoreLogic Credco recently introduced FinalCheck, an automated, fully ""decisionable"" suite of prefunding risk evaluation products that instantly verify credit, application, and fraud data in an easy-to-read report for lenders. The company says FinalCheck is designed to help lenders satisfy GSE requirements, reduce repurchase risk, and increase loan delivery confidence.

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GSEs’ Delinquency Numbers Tell Different Stories

Fannie Mae and Freddie Mac have seen a steady falloff in the rate of loans 90 or more days overdue since early this year, but their latest figures show the rate continuing to head down for one, up for the other. Both GSEs have dialed up the pressure lately for big banks to buy back bad loans. But the lenders themselves are doing their own dialing up, only it's in the form of stronger resistance to repurchase requests. The two mortgage giants are planning to implement new lending guidelines and fee structures for riskier loans.

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Ally CEO: We ‘Screwed Up’ and We’re ‘Embarrassed’ over Robo-Signers

Ally Financial's GMAC Mortgage subsidiary was the first major servicer to announce a foreclosure freeze after finding problems in its procedures that led to errors in legal affidavits. In the words of Ally's own CEO, ""We had a robo-signer affidavit problem. We're embarrassed about it and we fixed it. We'll be the first to say we screwed up."" The company reported a $269 million profit for the third quarter on Wednesday, and said it's decided not to sell its ResCap mortgage unit.

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