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"I wish FHFA's IG would have called me because we could have explained a lot of this stuff away," said Ted Tozer, president of Ginnie Mae.
Ginnie Mae President Ted Tozer took issue with a government watchdog report that criticized both his agency and the government-sponsored enterprises for failing to catch the massive fraud at Taylor, Bean & Whitaker.
TASK AHEAD: B of A seeks to reduce its number of delinquent loans and legacy costs to $500 million a quarter in coming years, CEO Brian Moynihan said this summer. They totaled $1.4 billion in the second quarter.
The Charlotte, N.C., bank has lost more than $60 billion on its acquisition of Countrywide, including the cost of last week's big settlement with the Justice Department. But its issues are hardly over. The pain will continue for years as it has hundreds of thousands of delinquent, unsellable mortgage loans to work through.
Allowing the Federal Home Loan Bank System to invest in mortgage-backed securities is just one of many ideas being pitched to policymakers to revive the private-label market.
Many banks are aggressively closing branches to cut costs. Those banks must be mindful about branches in moderate- and low-income neighborhoods or risk downgrades after their next Community Reinvestment Act examination.
New rules are illuminating a once-shadowy market where servicers can be quick to modify loans and may have few qualms about principal reduction. Discounts or equity make such flexibility possible.
Fannie Mae, Freddie Mac and Ginnie Mae all overlooked warning signs about Taylor, Bean & Whitaker that make them partly to blame for the mortgage lender's multibillion fraud scheme, according to a government watchdog report.
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