Posts Tagged ‘law firm’

What’s Next for Consumer Data Security?

Posted on September 29, 2017 by Laura Lam

For Equifax, the fallout from its massive data breach is far from over.  The company is facing numerous inquiries from government agencies and even lawsuits.  The breach exposed serious flaws in the financial system’s consumer data security framework.  So how can the financial services industry protect against fraud in the future?  How can they make things safer? According to a new report from ratings agency DBRS, the answer to making things safer is to further embrace technology.  Specifically, DBRS states that it believes the financial services industry needs to move towards biometric security, which would provide additional layers of protection that a Social Security…

Mortgage Fraud Risk on the Rise

Posted on September 28, 2017 by Laura Lam

An estimated 13,404 mortgage applications, representing 0.82% of all applications, filed during the second quarter contained indications of fraud, according to the Mortgage Application Fraud Risk Index released by CoreLogic.  The second-quarter figure is a 16.9% increase from the 12,718 mortgage applications, comprising 0.70% of total applications, that contained indications of fraud recorded in the second quarter of 2016. By state, mortgage application fraud risk was highest in New York, pushing it to overtake Florida as the state with the highest risk. After holding the top spot for the last several years, Florida is now in third after posting a…

CMBS Delinquency Down in July

Posted on August 14, 2017 by Laura Lam

Though the Trepp CMBS Delinquency Rate climbed steeply in June, it retreated just as quickly in July. The delinquency rate for US commercial real estate loans in CMBS is now 5.49%, a decrease of 26 basis points from the June level. The rate is now only 2 basis points higher than where it stood at the end of May. Delinquency readings for four of the five major property types fell in July, with the lodging sector being the only one to increase, according to Trepp. According to the report, “After hitting a post-crisis low in February 2016, the reading has consistently…

Foreclosure Filings Down 20% from Year Ago

Posted on July 26, 2017 by Laura Lam

According to ATTOM Data Solutions’ Midyear 2017 U.S. Foreclosure Market Report the total number of U.S. properties with foreclosure filings during the first half of the year decreased by 20% from the previous year to 428,400, and down 28% from the first half of 2015.  While the amount of foreclosures decreased nationally, 7 states – Texas, Illinois, Connecticut, Oklahoma, West Virginia, Montana and North Dakota – and D.C. saw increases. ATTOM Data Solutions says that default notices, scheduled auctions or bank repossessions were lower in almost all areas but 8 areas saw an increase, led by a 60% rise in the District…

Millions of Homes Still ‘Seriously Underwater’

Posted on May 16, 2017 by Laura Lam

Since the housing recovery began a few years ago, millions of homeowners have gotten their heads back above water due to rising home prices.  That said, there are still millions who are still underwater. In its latest report, ATTOM Data Solutions found nearly 5.5 million homes in the “seriously underwater” category at the end of the first quarter. Homes in that grouping have mortgages that are at least 25% more than the homes’ current value.  The report says the number of homes seriously underwater actually rose from the number at the end of the fourth quarter, suggesting a worsening of…

Foreclosure Process Can Take 5 Years in Some States

Posted on May 10, 2017 by Laura Lam

A decade ago, a home in Connecticut could be sold to another party about 12 months after a borrower stopped paying a mortgage.  These days, it’s more like 5 years.  The national average for liquidation timelines in 2016 reached 48 months. In many Northeastern states, including Connecticut, that timeline reached or surpassed the 55-month mark last year, according to data from Fitch Ratings. Sean Nelson, a senior director at Fitch Ratings, said the increase began as a direct result of the mortgage crisis. Loan servicers were not used to dealing with thousands of delinquent borrowers at one time which created…

Subprime Student Loans Resemble Pre-Crisis Mortgage Loans

Posted on April 28, 2017 by Laura Lam

Millions of U.S. parents have taken out loans from the government to help their children pay for college … now a crushing bill is coming due.  Hundreds of thousands have tumbled into delinquency and default. In the process, many have delayed retirement, put off health expenses and lost portions of Social Security checks and tax refunds to their lender, the federal government. Student loans made through parents come from an Education Department program called Parent Plus, which has loans outstanding to more than 3 million Americans. These loan applications ask almost nothing about its borrowers’ incomes, existing debts, savings, credit…

Auto Loan Defaults Not Likely to Cause Next Bubble

Posted on April 10, 2017 by Laura Lam

An increase in the delinquency of risky auto loans probably won’t send the U.S. economy into the doldrums the way the mortgage loan crisis did in 2008-09, but it will likely pinch car sales.  Borrowers are falling behind on most subprime car loans, but deep subprime consumers – those with credit scores below 550 – have deteriorated fastest, according to a report by Morgan Stanley. Just like mortgages, many of those loans have been packaged into bonds, “securitized” in Wall Street parlance, and sold across the world to investors searching for yields in the wake of the financial crisis. Car…

The Uncertain Future of the CFPB

Posted on January 03, 2017 by Laura Lam

The Consumer Financial Protection Bureau faces a precarious and uncertain future in 2017 with all eyes focused on two questions: whether President-elect Donald Trump will attempt to fire agency director Richard Cordray and if Congress can successfully restructure the agency by changing its leadership and funding. Those issues, in addition to a critical legal case that is still pending, are liable to cast a shadow over the agency’s ambitious agenda as it attempts to move forward on regulations concerning payday lending, mandatory arbitration, overdraft fees, debt collection and more. “We don’t know whether Trump will seek to remove Cordray, whether…