Regulators to Curb Financial Risks at U.S. Servicers

(RECAP: Regulators are preparing rules to curb financial risks of expanding nonbank mortgage companies after investigating homeowner complaints that include improper foreclosures and unauthorized fees. Authorities are taking action after the three largest nonbank servicers, led by Ocwen Financial Corp., tripled in size since 2012. State regulators plan to issue recommendations for standards on liquidity, capital and corporate governance early next month. The FHFA will set risk management guidelines by Dec. 1 after its inspector general said the companies showed “warning signs” of financial weakness.)