Mortgage Servicer Suing BofA, 11 Others for Selling Bad Loans

Residential Capital LLC is suing Bank of America and 11 other mortgage lenders, claiming the lenders sold poor-quality loans which led to the now-defunct mortgage company’s bankruptcy, Bloomberg reports. In May 2012, Residential Capital filed for bankruptcy protection after investors who bought mortgage-backed bonds claimed they were loaded with faulty loans, Bloomberg reports. It was […]

Lenders Settle with HUD on Reverse Mortgage Allegations

Investigators with the Department of Housing and Urban Development recently entered into settlements with various lenders who they alleged allowed borrowers to obtain multiple reverse mortgages on more than one property. Auditing HUD’s oversight of its Home Equity Conversion Mortgage (HECM) program, the Office of the Inspector General found that 33 borrowers had more than […]

L.A. Sues Bank of America for Mortgage Discrimination

The City of Los Angeles last week filed a lawsuit against Bank of America Corp. (NYSE: BAC), alleging the company practiced discriminatory mortgage lending in several of the city’s minority communities. The lawsuit, filed Friday in U.S. Federal Court, alleges that Bank of America “engaged in a continuous pattern and practice of mortgage discrimination in […]

WSJ: Small Mortgage Lenders Own the Market

Smaller lenders are seeing an opportunity to gain market share as more big banks scale back their mortgage lending operations, according to an article from The Wall Street Journal (WSJ).  As of the third quarter of this year, smaller mortgage lenders have held a 60% market share of the U.S. origination market, an increase from […]

WSJ: Bank of America Planning Mortgage Comeback

Aiming for a “new run” at the mortgage business, Bank of America is planning for a comeback in home loans, the Wall Street Journal reports. The shift comes less than two years after a marked pulling back from mortgage lending following the housing crisis and ongoing mortgage settlements to offer borrower restitution and compensation for […]