Newsroom
August 24, 2014
Banks causing HAMP backlog
July 31,2014 – Mortgage servicers such as JPMorgan Chase and Citigroup are causing a backlog of requested mortgage modifications by not processing Home Affordable Modification Program applications in a timely manner, according to a report from the Special Inspector General for the Troubled Asset Relief Program.
HAMP is a federal program meant to assist eligible home owners with loan modifications on their home mortgages, which was created in 2009.
The report found the number of borrowers waiting for an application response rose by 65 percent between November and May, according to Bloomberg. The article named 10 delinquent servicers in particular, and specified Ocwen Loan Servicing LLC as the lender with the largest backlog of unprocessed applications – saying it has not processed 61,000 applications. Bloomberg said homeowners are supposed to receive a response within a month.
Earlier this month, SunTrust Mortgage paid $320 million in order to resolve the Justice Department's investigation into its misleading of homeowners interested in HAMP – in particular, misrepresenting how long it would take to determine a borrower's qualifications for the program.
Last December, the CFPB along with 49 states and D.C. filed a proposed court order for Ocwen Financial Corporation – of which Ocwen Loan Servicing is a subsidiary – to pay $2 billion to underwater homeowners, as well as $125 million to the almost 185,000 borrowers who have already been foreclosed upon, in light of its misconduct and violations, including charging unauthorized fees and giving consumers false or misleading information.
HAMP is a federal program meant to assist eligible home owners with loan modifications on their home mortgages, which was created in 2009.
The report found the number of borrowers waiting for an application response rose by 65 percent between November and May, according to Bloomberg. The article named 10 delinquent servicers in particular, and specified Ocwen Loan Servicing LLC as the lender with the largest backlog of unprocessed applications – saying it has not processed 61,000 applications. Bloomberg said homeowners are supposed to receive a response within a month.
Earlier this month, SunTrust Mortgage paid $320 million in order to resolve the Justice Department's investigation into its misleading of homeowners interested in HAMP – in particular, misrepresenting how long it would take to determine a borrower's qualifications for the program.
Last December, the CFPB along with 49 states and D.C. filed a proposed court order for Ocwen Financial Corporation – of which Ocwen Loan Servicing is a subsidiary – to pay $2 billion to underwater homeowners, as well as $125 million to the almost 185,000 borrowers who have already been foreclosed upon, in light of its misconduct and violations, including charging unauthorized fees and giving consumers false or misleading information.
Share This
Related Resources
Add to Calendar 2024-04-23 14:00:00 2024-04-23 14:00:00 Monitoring the Latest Litigation Risks Credit unions’ operations pose litigation risks, with more of these cases being filed as class action lawsuits. In this Monitoring the Latest Litigation Risks for Credit Unions webinar, you’ll review some of the specific kinds of lawsuits impacting credit unions and what potential claims could be on the horizon. You’ll also examine some options for mitigating risks. Key Takeaways Review the current lawsuit trends. Understand the potential claims risks Explore options for mitigating risks. Register Now $295 Members | $395 Nonmembers(Additional $50 for USB)One registration gives your entire team access to the live webinar and on-demand recording until April 23, 2025Go to the Online Training Center to access the webinar after purchase » Who Should Attend NCCOs NCRMs Compliance and risk titles Education Credits NCRMs will recieve 1.0 CEUs for participating in this webinar NCCOs will recieve 1.0 CEUs for participating in this webinar Web NAFCU digital@nafcu.org America/New_York public
Monitoring the Latest Litigation Risks
Credits: NCCO, NCRM
Webinar
Resiliency In Your Incident Response Plan
Cybersecurity
preferred partner
DefenseStorm
Blog Post
The Bottom Line on Insurance Tracking and Collateral Protection
Strategy
preferred partner
Allied Solutions
Blog Post
Add to Calendar 2024-04-15 09:00:00 2024-04-15 09:00:00 Mergers and Acquisitions: Unifying Two Different Executive Total Compensation and Benefits Programs Listen On: Key Takeaways: [03:50] With the merger of a smaller credit union into a larger one you are really only dealing with integrating staff into the larger credit union. [05:53] When working with a merger of equals we start with a deep dive into the executive compensation and benefits of each organization. [09:09] If your current executive benefits provider doesn’t conduct regular plan evaluations, consider having a plan audit anyway. [13:46] Don’t overpay for these things if you don’t have to. When you have more options available that means the cost is more appropriate. [17:11] It is in a unified organization’s best interest to do tier timelines where we look at your top executives who are critical to the unified organization’s success today and then slowly add in the next levels. Web NAFCU digital@nafcu.org America/New_York public
Mergers and Acquisitions: Unifying Two Different Executive Total Compensation and Benefits Programs
preferred partner
Gallagher
Podcast
Get daily updates.
Subscribe to NAFCU today.