Mortgage Technology Activity
Mortgage technology continues to expand as innovators launch new offerings. Among the latest activity are new services that help prevent mortgage fraud, predatory lending and bad appraisals.
iMortgage Services LLC revealed the iMS PropertySmart platform, which will enable lenders to have more flexibility when it comes to managing the settlement services needs of loan origination and loss mitigation in an effort to aid mortgage companies to stay in line with the requirements of the GSE Home Valuation Code of Conduct.
Kroll Factual Data announced its release of ActionFacts, a service that will allow the company's clients to compare data for employment and income information of their applicants.
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State Seeks $20 Million from Broker
California's attorney general has arrested several individuals and shut down businesses connected to a Los Angeles mortgage broker, who along with his sister and his mother, has been accused of bait-and-switch tactics and fraud on thousands of loans. The state is seeking $20 million in penalties and restitution.
Baltimore v. Wells Fargo
The city of Baltimore last week filed a lawsuit against Wells Fargo in federal trial court, charging the ubiquitous lender with targeting Baltimore's minority neighborhoods with mortgage loans that are unfair and discriminatory. But the company denied the charges, saying that it prices loans based on risk, not race.
Lenders Losing Lawsuits
Borrowers appear to be winning a number of lawsuits filed against mortgage companies, an analysis of previously covered litigation by MortgageDaily.com indicated. Two of the cases are seeking to stave off foreclosures while another is targeting fees charged by state regulated lenders in Maryland. One lawsuit accuses several lenders of steering black borrowers into higher cost loans.
Fed Proposes Sweeping TIL Changes
The Federal Reserve Board has proposed sweeping changes to rules governing high-cost loans and prime loans. Among the changes are a ban on stated income and stated asset programs, mandated escrow accounts and limitations on yield spread premiums paid to mortgage brokers.
Lawsuit Alleges Predatory Servicing
In a lawsuit filed this week, Bear Stearns Companies and its servicing subsidiary are accused of charging frivolous fees, losing payments and mismanaging escrow accounts on loans with nonprime minority borrowers.
Full House Passes H.R. 3915
The full U.S. House of Representatives passed H.R. 3915 today. Those happy with its passage include mortgage brokers -- who successfully lobbied for the preservation of yield spread premiums. But the president and mortgage bankers oppose it.
HR 3915 Approved by Committee
HR 3915 advanced through the House Committee on Financial Services. The proposed legislation would limit yield spread premiums and push more loans into the burdensome, high cost category.
Mixed Support for Subprime Bill
Several groups testified Wednesday before Congress about anti-predatory legislation introduced earlier this week. Mortgage brokers warned against the proposed elimination of yield spread premiums while mortgage bankers expressed opposition to provisions that would require suitability standards and lower the threshold for loans considered to be high cost. Consumer groups called for more accountability by investment bankers.
