Thousands Line Up for Zero-Down-Payment, Subprime Mortgages

October 12, 2018 | CNBC Magdalene Altidor lost her home to foreclosure during the subprime mortgage crisis, but this week she was first in line at a four-day event in Miami where borrowers with poor credit were offered no-down payment, low interest rate loans.

"I left home, it was about 4am," she laughed. "I'm ready to purchase a home."

The event is one of several being held in cities across America this year, run by the non-profit, Boston-based brokerage, Neighborhood Assistance Corporation of America, or NACA.

"It's a national disgrace about the low amount of homeownership, mortgages for low and moderate income people and for minority home buyers," said Bruce Marks, CEO of NACA. "In the loans that we've originated in the past 6 years, zero foreclosures." Read more here.

Regulators Are Suing Subprime Mortgage Servicer Ocwen for Years of ‘Deceptive Practices’

Fortune | April 21, 2017        For the second time since 2013, the U.S. Consumer Financial Protection Bureau on Thursday sued Ocwen Financial over accusations of widespread misconduct in how it serviced borrowers' loans, from foreclosure abuses to a basic failure to send accurate monthly statements.

News of the CFPB accusations plus related legal actions against Ocwen filed by at least 20 states sent shares of Ocwen crashing by nearly 60% in just over an hour, starting after a cease and desist order filed by North Carolina.

CFPB officials said that mortgage servicer Ocwen and its subsidiaries have failed to clean up their act, even after the CFPB ordered Ocwen in December 2013 to fork over $2 billion in relief to harmed borrowers because of similar violations.

"The consumer bureau has uncovered substantial evidence that Ocwen engaged in unfair and deceptive practices," CFPB Director Richard Cordray said, adding that thousands of customers were harmed.  Read more here.