Daily News related to the Foreclosure Crisis

The biggest unpunished heist in human history - Max Keiser

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02/26/26

Shellpoint hit with RESPA suit after servicing transfer sparks foreclosure
NewRez/Shellpoint allegedly erased a borrower's successor status during a servicing transfer — then foreclosed on the very default its own error created. A lawsuit filed February 23, 2026, in the U.S. District Court for the Middle District of Florida lays out a sequence of events that mortgage servicers would do well to study closely. The case, Murray v. NewRez LLC d/b/a Shellpoint Mortgage Servicing (Case No. 5:26-cv-00142), centers on what happens when critical borrower information falls through the cracks during a loan handoff. Denise Murray was confirmed as a successor in interest by Wells Fargo in February 2022, after her mother, Ann Murray, passed away. Wells Fargo updated the account, and Murray began receiving billing statements, escrow notices, and other loan communications. The system worked as it should — until it didn't.

02/26/26

Court voids Texas lien after servicer's nine-year foreclosure delay
A Texas lien sat untouched for nine years. On February 24, 2026, a federal appeals court said that was nine years too many. Here is what happened. Back in 2004, Houston Prime Investments took out a $500,000 loan secured by a home equity lien on real property. The deal was straightforward – monthly payments starting March 2004, with a final balloon payment due February 1, 2014. When that balloon came due, Houston Prime stopped making payments in 2014, admitting to being in default. What followed was years of inaction.

02/25/26

Big banks retreated from mortgages after the 2008 housing crash—now this Fed governor wants them back
Since the 2008 housing bust and subsequent Great Financial Crisis (GFC), mortgage lending has steadily shifted away from big banks. In the years that followed—amid tighter regulations, higher capital requirements, and elevated litigation risk—many large banks, including Bank of America, JPMorgan Chase, and Wells Fargo, reduced their mortgage footprint. In that void, nonbank lenders, also known as independent mortgage banks (IMBs), such as Rocket Mortgage, United Wholesale Mortgage (UWM), and loanDepot, gained market share. Now, a top Federal Reserve official is openly questioning whether policy and regulation went too far—and is signaling that a policy shift may be coming.

02/20/26

House Financial Services subcommittee holds hearing on secondary mortgage market
On February 11, the House Committee on Financial Services Subcommittee on Housing and Insurance convened a hearing to examine homeownership and the role of the secondary mortgage market, with a focus on the ongoing conservatorship of government-sponsored enterprises (GSEs) (i.e., Fannie Mae and Freddie Mac) and related policy implications. The committee memorandum described the secondary mortgage market as being comprised of lenders who sell completed mortgages to third parties, which then pool them into mortgage-backed securities to be purchased by investors, thereby dispersing risk and replenishing capital for the lenders to make new loans.

02/16/26

Bowman: Fed to propose capital changes aimed at reviving banks’ mortgage role
The Federal Reserve will soon issue proposals to change the regulatory capital framework in ways that incentivize banks to originate and service mortgages, Vice Chair for Supervision Michelle Bowman said at ABA’s Conference for Community Bankers in Orlando today. Specifically, the proposals would “remove the requirement to deduct mortgage servicing assets from regulatory capital while maintaining the 250% risk weight assigned to these assets,” Bowman said. They would also consider increasing the risk sensitivity of mortgage loans held by banks — that is, creating a broader range of risk weights that would reflect the relative characteristics of different loans, “rather than applying a uniform risk weight regardless of [loan-to-value ratio],” she explained.

02/12/26

U.S. Foreclosure Rates by State – January 2026
What Is the Current Foreclosure Rate in the U.S.? In January, 2026, U.S. foreclosure activity decreased from the prior month but remained above levels reported one year earlier. Total filings: 40,534 properties with default notices, scheduled auctions, or bank repossessions Monthly change: Down 10 percent from December 2025 Year-over-year change: Up 32 percent from January 2025 National rate: One in every 3,547 housing units had a foreclosure filing States with the worst foreclosure rates: Delaware, Nevada, Florida South Carolina, and Maryland

02/09/26

Eighth Circuit affirms summary judgment in favor of mortgage servicer
On February 2, the U.S. Court of Appeals for the 8th Circuit affirmed a district court’s summary judgment order in favor of a mortgage servicer in a dispute under the FCRA. The plaintiffs sued their servicer, alleging it furnished inaccurate information to credit reporting agencies and failed to conduct a reasonable investigation after the plaintiffs disputed a late payment. After the plaintiffs filed for bankruptcy in March 2020 and reaffirmed their loan, the servicer required the plaintiffs to pay by mail. The servicer instructed the plaintiffs in a welcome letter to “make checks payable to [the servicer]” and to “include your mortgage loan number . . . on the check.”

02/07/26

CFPB v. Sutherland
A lawsuit was brought by the Consumer Financial Protection Bureau (CFPB) against the companies, NOVAD Management Consulting, LLC, Sutherland Global Services, Inc., Sutherland Mortgage Services, Inc., and Sutherland Government Solutions, Inc. The CFPB alleged the companies failed to effectively service home equity conversion mortgages, also called reverse mortgages. The CFPB also alleged that the companies sent incorrect letters about repayments and ignored customer requests and questions, which may have resulted in borrowers fearing foreclosure, paying unnecessary costs, and losing out on home sales. Affected consumers are receiving a refund because of a settlement in this lawsuit.

02/06/26

Daily Decision Recap: Fraud-Induced Debt, Foreclosure Challenges, and More
Each week, ACA International’s compliance team covers relevant case summaries for ACA members. Here’s a rundown of recent top FCRA, TCPA, and FDCPA cases we’ve covered.

02/03/26

Servicer accused of ignoring five Notices of Error before foreclosing
A federal lawsuit filed last week alleges Shellpoint Mortgage Servicing ignored a borrower's requests for five years while pushing ahead with foreclosure. The case, filed January 30 in the Northern District of Ohio, paints a troubling picture of what one homeowner describes as a years-long struggle to get the servicer to honor a loan modification agreement. The allegations, which have not yet been tested in court, touch on compliance issues that should give pause to any mortgage professional following Regulation X developments. The borrower claims he was approved for a permanent loan modification in November 2019. He signed the paperwork, returned it on time, and made every payment as agreed. But according to the lawsuit, Shellpoint never actually implemented the modification and refused to update his account balance.

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