CFPB warns mortgage shopping sites on RESPA violations

Digital mortgage shopping platforms could be violating the Real Estate Settlement Procedures Act's anti-kickback rules if they provide more prominent placement of a lender on their sites based on compensation rather than neutral decision criteria, the Consumer Financial Bureau said. In an accompanying statement to the advisory opinion, CFPB Director Rohit Chopra cited a Federal Trade Commission settlement with LendEDU, although that particular situation did not involve transactions that were covered by RESPA's Section 8. "The operator's conduct involved both fake reviews and pay-to-play steering of consumers to platform participants," Chopra said. "If similar conduct is observed in the mortgage market, the CFPB will not hesitate to act." The regulator presents two specific instances that could make these providers subject to enforcement activities: presenting one or more service providers in a non-neutral way; and biasing the platform's internal formula to favor preferred providers.

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Mortgage rates rise for first time in a month

Mortgage rates increased this past week, as last Friday's stronger-than-expected jobs report drove the 10-year Treasury higher in the early part of the period before settling down in the last couple of days. The Freddie Mac Primary Mortgage Market Survey ended a streak of four consecutive declines with a 3-basis-point increase for the average 30-year fixed rate, with the average rising to 6.12% for the week of Feb. 9. This is compared with 6.09% for the week of Feb. 2 and 3.69% one year ago. However, the 15-year fixed had a starker rise more in line with the 10-year Treasury, to 5.25% from 5.14% one week prior, and 2.93% for the same week in 2022.

Rithm Capital predicts return of originations profits in early 2023

Servicing income led Rithm Capital's mortgage operations to a profit amid the ongoing industry slowdown, but company leaders predicted originations growth to return in the first half of 2023. "On the originations side, I think we should be back to profitability either Q1 or early Q2," said Rithm Capital CEO and President Michael Nierenberg in the company's earnings call. The real estate investment trust formerly known as New Residential Investment Corp. posted a company-wide profit of $81.8 million in the fourth quarter, reflecting a 34.3% decrease from $124.5 million earned three months earlier and a 49.4% decline from? $160.4 over the same period in late 2021.

Ex-Sprout CEO's originator licenses suspended

An Illinois regulator suspended the originator licenses of former Sprout Mortgage CEO Michael Strauss and his new company after they failed to address concerns about his background. Strauss' new business effort was halted Feb. 1 in an order by the Illinois Department of Financial and Professional Regulation's Division of Banking, according to a notice posted in the Nationwide Multistate Licensing System. The disgraced industry executive obtained mortgage licenses in Illinois late last year for himself and his firm, Smart Rate Mortgage LLC. Strauss lists himself as the principal loan officer for Jacksonville, Florida-based Smart Rate established last August, according to NMLS records. He formed the company one month after Sprout abruptly shut down.

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Two Harbors leans into MSR profits as bond volatility drives net loss

Two Harbors Investment Corp. recorded a fourth-quarter loss linked largely to fluctuations in the value of its residential mortgage backed-securities, spurring a shift more toward more profitable servicing investments. The real estate investment trust, which is in the process of acquiring a servicer through its Matrix Financial Services subsidiary, recorded a loss of $262.4 million under standard accounting principles, which is mostly in line with preliminary results issued earlier, according to analysts at Keefe, Bruyette & Woods. Two Harbors had taken a net loss of a little over $15 million a year earlier, and generated nearly $263.9 million in net income during the third quarter.

JPMorgan Chase makes cuts to its home lending division

JP Morgan Chase shed hundreds of employees in its home lending division Wednesday.? The company would not confirm the exact number, but said this is a natural ebb and flow of reviewing "business and customer needs and adjusting staff accordingly." This includes "creating new roles where we see the need or reducing positions when appropriate." Mortgage professionals let go were located in Wisconsin, Illinois and Arizona, per employees impacted.?

Mortgage robocall volume wanes, but TCPA suits persist

Americans received 14.3 million mortgage robocalls in January, less than half of the 30.3 million they received in December, according to spam call blocking app Robokiller. Those home loan-related calls were a fraction of the 5.5 billion robocalls overall that were made last month, but still well above the amount of total car warranty and student loan calls. Mortgage lenders have faced numerous lawsuits accusing them of violating the Telephone Consumer Protection Act with calls to consumers on the registry, including at least 65 federal civil complaints since the beginning of 2022, according to a National Mortgage News analysis of publicly available court records.?

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