CFPB to Bank LOs: Drop Dead

Late this week the Consumer Financial Protection Bureau poked its thumb in the eye of residential loan officers originating mortgages for depositories. The young agency, more or less, shut the door on states issuing what are called “transitional” licenses to bank LOs who leave and then seek jobs working for nonbank firms — either originators or brokerages. “The bureau recognizes this can create impediments to job changes and is committed to working with the states, industry” and others to minimize the impediments, the CFPB said. Still, it went ahead with its decision. As the weekend approached, bank LOs everywhere likely were pondering their futures. (Reporting by NMN‘s Brian Collins.) Stay tuned…

I would guess former NAMB chief Marc Savitt is about to weigh in on this development. Mark now runs the National Association of Independent Housing Professionals which represents brokers, appraisers and others…

Remember that Wells Fargo “exclusionary” list of correspondents it won’t do business with? One source close to the matter said a large wholesaler was just added to the list. We know the identity of the firm and will report more on the situation early next week…

THIS JUST IN: Whole Loan Capital has formed a group of originators to pool together their origination capabilities and create close to $5 billion of high quality mortgage servicing rights. It would appear the “flow” market may indeed be back…

As for MSR flow prices, lenders are sick and tired of the lousy SRPs the aggregators are paying. Two-times the servicing fee? Really…

Also: Bank of America is on the verge of unloading a $20 billion MSR package. Supposedly, Ocwen was bidding…

In other MA news, Nationstar is still in talks with ResCap/GMAC. The clock is ticking on that missed bond payment…

Over the past few months B of A has 6,000 to work on problem servicing and loan mods, or so I heard one bank official say during its 1Q earnings conference call…

ROMENY HATES HUD UPDATE: Our website was burning up this past week with readers taking in our WWH blurb on GOP hopeful Mitt Romney wanting to (possibly) kill HUD. Presumably, he wants to stick a knife in FHA and Fannie Mae and Freddie Mac, too. If that happens, Redwood Trust might be the only game in town…

Former Dime Savings chief (remember Dime?) Richard Parsons this past week said the 1999 repeal of the Glass-Steagall Act separating banks from investment banks and insurers made the financial services business more complicated. (Parsons also ran Time Warner for a while and just ended 16 years as a Citigroup director.) Speaking at a Rockefeller Foundation event in Washington he said, “To some extent what we saw in the 2007, 2008 crash was the result of the throwing off of Glass-Steagall.” What did the dismantling of Glass-Steagall allow? Answer: It allowed megabanks like Citigroup to own subprime lenders, and then take those very same loans and issued MBS. Countrywide had its own broker/dealer, too…

WASHINGTON NEWS: Republicans on the House Financial Services Committee have made it clear they believe the new Consumer Financial Protection Bureau is already too big and needs to be cut down to size. The bureau is projected to spend $356.4 million in the current (2012) fiscal year. The committee voted on party lines this week to reduce CFPB’s budget to $200 million in FY 2013.

THIS COLUMN’S FOR SALE: Want the rest of the industry to know about your HARP 2.0 program changes and LLPAs? Need to reach correspondents and brokers? Send an email to

LOAN OFFICERS, YES YOU CAN STILL BRAG A LITTLE, BUT TIME IS RUNNING OUT: NMN and its sister publication Origination News, the most widely read news magazine in the broker/correspondent sector, has launched its annual loan officer survey. Eventually, we’ll publish features and rankings on the nation’s top LOs. To participate in our survey visit

DATA STUFF: If you need contact names and emails on the top players in mortgage banking subscribe to NMN’s product. For more info drop an email to and ask about our site license rates. If you want exclusive stats on the nation’s top 100 lenders and servicers ask about the Quarterly Data Report. Free samples available, the operative word being “sample.”

I’m on Twitter, discussing mortgage matters, bad decisions made by hedge funds, and other stuff.

LAST WORD: Can the Caps pull it out of the fire? GC is hoping, as are all DC hockey fans.

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One Response to CFPB to Bank LOs: Drop Dead

  1. Mrs. Escandon-O'Rourke says:

    On June 2011, Ocwen Bank foreclosure my home…On DEC 2010-between the loan mod documents being lost and sent back time went by …when I thought we were working on a solution to save my home from foreclosure….Ocwen Loan Servicing LLC sent me over certified mail a notice of default in Jan 2011, before the 90 days grace period we have in the sate of California. we thought…but then after investigating why I had bad-negative credit report I found out that all these fake BANK loans that the Loan Officer -escrow. title co. and Broker did and collected are under my name and they did this evil deed in 9/2004!
    Ocwen Bank+ocwen loan servicing LLC.–DTS Communication in San Diego, CA and Ocwen Technology Exchange Address: 1144 The Pointe Drive, West Palm Beach, FL 33409Tel: 561 615 9326Website (760) 930-4584 – none providedEmail|Directions and also in 5050 Avnd Encns 200, Carlsbad, CA 92008 in a letter told me that they bought my loan since 9/2004from Argent!
    Since 2004 Ocwen Bank and Ocwen Loan Servicing LLC had my home loan and I thought Wells Frago was my Bank! Since 2004 Ocwen Bank did this to us… and NOW MY HOME LOAN IS TOXIC because “SOMEONE” manufactured false financial information with the intent to cause a TORT and made 4 forged and false “full reconveyance”..2 from Chase Bank , 1 from Wells Fargo and the other 1 from Flagstar Bank-Joan H Anderson-Robosigner) connected to selling securities at the SEC and they took more than
    2 million dollars ! using my name! my home !my address and my property.! my life!…all these fraudulent loans are recorder under my name! They stole all these money $1,304,015.39 ! + $ 975204.66! and now I am the one losing my home for loans that I never took?…I don’t think so! Jill Pfiefer and Elite escrow in San Diego along with Argent-Ocwen Bank –wells Fargo-Flagstar Bank and many more! Robo signer Renne L Hensely from Ocwen is another one making horrible phone calls of intimidation along with Marcos Momin from Ocwen Loan Servicing LLC…we homeowners are not happy with this deception at all! I called Mrs. Brown from the CALIFORNIA REAL ESTATE in Los Angeles, Ca and she said that there’s nothing they can do?…and why not?…no answer
    we bought this home at the price of $265,000.00 in the 2000’s…how it went up to the millions now I know why and for what reason..Jill Pfieffer is ONE million dollar richer along with Ocwen and Scott Anderson from Ocwen Loan servicing! How Pathetic people they are!

    The corruption is so big here in Chula Vista, Ca! Ocwen is taking 400 home a day! Using robosigner and forging instruments of Real Estate… just go and visit your county records office. they record all sore of documents inside that building including the FALSE BANK LOANS! Stop committing FORGERY !
    Ocwen has so many companies how can the CA AG control Ocwen?..Ocwen already received million from government
    Ocwen to get up to $659 million from government loan modification program
    Ocwen Financial Corporation Announces Redemption of 3.25% Contingent Convertible Senior Unsecured Notes Due 2024ource: Ocwen Financial Corp.
    Date: March 15, 2012 07:51 ET by Jeff Ostrowski Seeing a “huge windfall” from Uncle Sam, Trader Mark at the Seeking Alpha blog says he’s loading up on Ocwen shares.
    OCN.COcwen Financial CorpCincinatti Stock ExchangeOCN.DFOcwen Financial CorpNASD Alternative Display Facility for NYSE/AMEX IssuesOCN.MWOcwen Financial CorpMidwest Stock ExchangeOCN.POcwen Financial CorpNYSE ArcaOCN.PHOcwen Financial CorpPhiladelphia Stock ExchangeOCN.WOcwen Financial CorpChicago Board Options ExchangeOCN.ZOcwen Financial CorpBATS Stock ExchangeOCNOcwen Financial CorpNew York Consolidated
    Overall knowledge and experience in mortgage loan servicing desirable but not required.

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