Norris Bruce
Apr 11, 2016

Wells Fargo Required to Pay $1.2 Billion In the Largest Settlement in FHA History

Today’s News Synopsis:


Wells Fargo is required to pay $1.2 billion, the largest settlement in the history of the FHA, to cover the costs of bad loans that went undisclosed.  Another bank, Goldman Sachs, is also required to pay to cover the cost of toxic mortgage bonds in a $5 billion settlement.  The Mortgage Bankers Association reported the amount closed on loans for commercial and multifamily properties was at a record $508.3 billion.


In The News:

Mortgage Professional America – “Morning Briefing: Wells Fargo to pay $1.2 billion for hiding bad loans” (4-11-16)

“Wells Fargo will pay the US government $1.2 billion for hiding bad loans ahead of the housing market crash.  The mortgage lender’s certification of thousands of loans which were given FHA insurance led to taxpayers footing the bill when the loans were defaulted.”

DS News – “TRID Could Mean Trouble for GSE Risk Transfers” (4-11-16)

“Per the direction of their conservator and regulator, the Federal Housing Finance Agency (FHFA), Fannie Mae and Freddie Mac were instructed not to conduct loan-level residential mortgage-backed securities (RMBS) reviews for technical compliance with the Consumer Financial Protection Bureau’s (CFPB’s) TILA-RESPA Integrated Disclosure Rule (TRID) when conducting their credit-risk transfer transactions.”

Housing Wire – “Goldman Sachs officially reaches $5B settlement over toxic mortgage bonds” (4-11-16)

“The previously announced $5 billion settlement between Goldman Sachs and the federal government over claims related to toxic mortgage bonds sold to investors in the run-up to the financial crisis is now official, the Department of Justice announced Monday morning.”

DS News – “New York AG Petitions Watt Over Mortgage Relief” (4-11-16)

“As the debate over whether or not to offer principal reduction to struggling homeowners has returned to the forefront of housing policy, New York Attorney General Eric Schneiderman has written a letter to FHFA Director Mel Watt asking the Director to “broadly and quickly” implement a plan offering principal reduction to homeowners facing foreclosure.”

Mortgage Professional America – “Big bank settlement for loan origination is largest in FHA history” (4-11-16)

“The Wells Fargo settlement with the Justice Department over improper lending practices will be the largest recovery for loan originations in the history of the Federal Housing Administration, according to HousingWire. ”

DS News – “Mortgage Credit Availability Tightens Up” (4-11-16)

“The Mortgage Credit Availability Index (MCAI) from the Mortgage Bankers Association (MBA), which analyzes data from Ellie Mae’s AllRegs Market Clarity business information tool, found that mortgage credit availability fell 0.2 percent to 123.5 in March.”

Mortgage Professional America – “Commercial, multifamily lending hits near-record level” (4-11-16)

“Commercial and multifamily mortgage bankers closed a near-record $508.3 billion in loans in 2015, according to new data from the Mortgage Bankers Association.”

DS News – “PHH Cries Foul, Claiming Abuse of Power by CFPB; Trial Set to Begin” (4-11-16)

“Oral arguments are about to begin for the first-ever lawsuit challenging the constitutionality of the Consumer Financial Protection Bureau (CFPB)’s authority. The trial in the case of PHH Corp. v. CFPB begins Tuesday morning in the U.S. Appeals Court for the District of Columbia.”


Hard Money Loan Closed

Oceanside, California hard money loan closed. Real estate investor received loan for $160,000 on this single family property appraised for $247,500.

Oceanside Hard Money Loan closed by the Norris Group


California Real Estate Investor Events

Bruce Norris will be presenting his newest talk Stay Put, Cash Out, Or Change Seats? with LA South REIA TONIGHT.

Bruce Norris will be presenting his newest talk Stay Put, Cash Out, Or Change Seats? with IVAR on Wednesday, May 4.

Bruce Norris will be presenting his newest talk Stay Put, Cash Out, Or Change Seats? with OCRE Forum on Wednesday, May 11.

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For more information about The Norris Group’s California hard money loans or our California Trust Deed investments, visit the website or call our office at 951-780-5856 for more information. For upcoming California real estate investor training and events, visit The Norris Group website and our California investor calendar. You’ll also find our award-winning real estate radio show on KTIE 590am at 6 pm on Saturdays or you can listen to over 170 podcasts in our free investor radio archive.

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