Servicing orgs hit with $20 million penalty
National Mortgage News
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California, Maryland, North Carolina and Washington state entities led an extensive group of regulators in an action imposing a $20 million penalty on three affiliated servicing organizations on Wednesday. In total, more than 50 regulators acted against Bayview Asset Management LLC and three affiliates, citing deficiencies in the way the companies handled a 2021 data breach affecting 5.8 million people, according to the Conference of State Bank Supervisors. The settlement and consent order, which follows a series of legal and regulatory developments related to the breach, is the first coordinated servicing action taken by state regulators in some time.
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Redwood Trust announced plans to expand the scope of its home equity investment business with the addition of lending products, while also updating branding of its jumbo issuance platform. The real estate investment trust will offer specialized alternative loans through its consumer-facing Aspire division, it announced this week. The addition of loan products aims to serve consumers who might rely on nontraditional means of income calculation, such as bank statements or accountant review. Aspire had previously focused primarily on home equity sharing agreements since its launch in 2023.
The Department of Justice and a Florida-based lender are moving to settle claims that the mortgage shop engaged in discriminatory lending practices from 2016 to 2021. During that stretch of time, The Mortgage Firm allegedly avoided offering mortgage services in predominantly Black and Hispanic neighborhoods in the Miami metropolitan area, according to a complaint filed by the Justice Department in Florida on Jan. 7. By doing so, the mortgage lender violated the Fair Housing Act and the Equal Credit Opportunity Act, the department argued.
Home loan application activity dropped 3.7% between the Christmas and New Year's Day periods, according to the Mortgage Bankers Association. Interest rates were also stagnant for the week ending Jan. 3, with the 30-year fixed-rate mortgage sitting on the cusp of 7%. The trade group's Purchase Index and Refinance Index fell 7% and 2% in the past week, respectively. Refinance activity was also down 6% compared to the same time last year, when rates were slightly lower on their 2024 debut.
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