Rocket Sues HUD

[djd09]

Is risky a racial code word now?

ancient chinese secret...

 

[Surf Cat]

If my memory serves me correctly.... didn't Rocket "settle" in the Lanham case? Essentially throwing in the towel and admitting guilt?

I don't know, maybe it was some other frivolous lawsuit and lender.

 

[Surf Cat]

Nevermind, that was Loan Depot.

 

[djd09]

rocket was caught manipulating waivers...oh no that was wells fargo

 

[shrubberyvaluation]

If my memory serves me correctly.... didn't Rocket "settle" in the Lanham case? Essentially throwing in the towel and admitting guilt?

I don't know, maybe it was some other frivolous lawsuit and lender.

That was uh, solidifi, maybe Rocket too?

 

[shrubberyvaluation]

If my memory serves me correctly.... didn't Rocket "settle" in the Lanham case? Essentially throwing in the towel and admitting guilt?

I don't know, maybe it was some other frivolous lawsuit and lender.

Yea I guess they figure the cost of fighting it isn't worth it. Cost of doing business with corruption.

 

[djd09]

Yea I guess they figure the cost of fighting it isn't worth it. Cost of doing business with corruption.

and don't forget...10% for the big guy

 

[djd09]

Research Finds Average Mortgage Loan Repurchase Rate is 0.49%, Average Cost $32,288 per Loan​

Thursday, 05 December 2024 06:00 AM


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Topic:
Company Update
Study reveals appraisal and income-related issues as two of the top three drivers of loan repurchases

BOSTON, MA / ACCESSWIRE / December 5, 2024 / Reggora, a leading appraisal management software company, today announced the findings of new research conducted in partnership with STRATMOR Group. The study highlights that the average mortgage loan repurchase rate over the last 18 months (April 2023 to October 2024) is 0.49%, with each repurchase costing lenders an average of $32,288. Appraisal and income-related issues are identified as two of the top three causes of repurchases, collectively responsible for 57% of cases.

The findings also reveal that independent mortgage lenders face a disproportionate challenge, experiencing 26% more repurchases on average compared to depository institutions.

The study delves into the specific underwriting issues that lead to repurchases, focusing on appraisal and income-related defects. Among the most common income-related issues are:

• Misrepresentation or miscalculation of borrower income:
  Discrepancies such as overstating earnings, failing to verify self-employment income, or improperly documenting secondary income sources often emerge during post-approval audits, leading to non-compliance with underwriting standards.
• Failure to meet debt-to-income (DTI) requirements:
  Errors in accounting for liabilities or improperly calculating income can result in understated DTI ratios. If later reviews reveal a borrower's DTI exceeds program thresholds, lenders may face repurchase demands.
• Income documentation errors or omissions:
  Missing or incomplete documentation-or reliance on unverifiable income sources-violates loan eligibility requirements and often results in buyback demands during post-closing reviews.

The study also examines the financial impact of loan repurchases, including defect fees, loan-level price adjustments (LLPAs), and underwriting costs associated with mitigating these risks. Findings are segmented by lender type (independent vs. depository) and loan characteristics, such as Collateral Underwriter® (CU) and Loan Collateral Advisor (LCA) scores.

"Loan repurchases are a persistent challenge for lenders, often carrying significant financial and operational consequences," said Brian Zitin, CEO of Reggora. "This study goes beyond just highlighting the problem-it pinpoints the most common issues, like income-related errors, and gives lenders clear insights into where they can make underwriting adjustments to reduce risk and improve loan quality."

"Appraisal costs, whether directly related to repurchases or to the review process, continue to be one of the few unexamined and unexploited areas of cost savings for lenders," said Mike Seminari, STRATMOR Group's Director of Customer Experience. "This study brings to light an opportunity for lenders to seek ways to limit repurchase losses and seek alternate, cost-saving review methods."

The full study results will be presented in a webinar hosted by Reggora and STRATMOR Group on December 12, 2024, at 11 a.m. PST / 2 p.m. EST. Mortgage lenders are encouraged to register here.

Lenders can also schedule a one-on-one consultation with Reggora's mortgage solutions team for a personalized review of the data. During the session, Reggora's team will share the complete study, compare your organization's performance to industry averages, and project potential cost savings enabled by its appraisal review warranty.

Contact Information

Michael Murphy
VP, Marketing
mmurphy@reggora.com

still blaming others for their own confusions...

 

[Tiffany Gibbons]

notice that rocket didn't give them a waiver...too risky

Exactly. I think all borrowers should sue if they are not offered a waiver, scuse me, value acceptance for any amount they think their house is worth just because they live there. Are these lenders biased?

 

[Zoe]

What would be even way worse on some of these lenders is:

What if HUD said okay, we have looked at all the fair housing data on the loans you have originated and run the truth in lending disclosures through a computer.

It appears you are charging higher amounts of interest and higher fees to a certain group of people that is a prohibited basis on fair housing law.

The Fair Housing Act prohibits discrimination in housing because of:

• Race
• Color
• National Origin
• Religion
• Sex (including gender identity and sexual orientation)
• Familial Status
• Disability

https://www.HUD.gov/program_offices/fair_housing_equal_opp/fair_housing_act_overview

You will have to copy the link or just search HUD fair housing discrimination act or something similar.