Some homeowners who were wrongly denied mortgage modifications or other assistance from Wells Fargo should get relief soon after a federal judge ruled this week that the bank was in breach of a 2010 settlement.
The whistleblower, an Ocwen employee, contacted Smith after noting “serious deficiencies” in Ocwen’s internal review group, which is suppose to report servicing issues to Smith’s office and meet new standards to ensure borrowers are treated fairly.
Ocwen “caused significant harm” to these homeowners by backdating denial letters in response to proper requests for lower monthly payments, the regulator said.
The FHFA is currently testing a program in Detroit where Fannie and Freddie would, in partnership with nonprofit companies, lower principal on homes in some of the hardest-hit communities.
Bank of America is on the verge of finalizing a reported $17 billion settlement with the U.S. government over the packaging and selling of bad mortgages, and it would be the biggest single hit taken by a big bank since the financial crisis.
“My team spent 36,000 hours reviewing and testing the consumer relief and refinancing activities reported by the banks,” Smith said. “Because of this extensive process, I’m confident in concluding that the banks have satisfied their obligations.”
As this year’s deadline approaches for incomes taxes owed in 2013, mortgage settlement recipients will have to deal with any tax implications. The big question: Will they have to pay taxes on these payouts, which totaled more than $4.5 billion?
The big U.S. mortgage servicers are still failing to completely hold up their end of the deal known as the National Mortgage Settlement, which aims to provide new protections for delinquent borrowers who may face foreclosure, according to a new report from the settlement’s court-appointed monitor.
Homeowners in Massachusetts have gained new protections against unfairly losing their homes, including a regulation that prevents national and state lenders from foreclosing if an application for a loan modification is in process.
Bank of America has moved at a faster clip than Wells Fargo, JPMorgan Chase and Citigroup in meeting obligations to help borrowers facing possible foreclosure under last year’s $25 billion National Mortgage Settlement. The latest audits credits Bank of America with 97 percent of its required $7.6 billion in consumer relief as of the end of last year.