Compliance & Regulation

A federal judge this week ruled that the court-appointed trustee overseeing the liquidation of Thornburg Mortgage, Santa Fe, can move forward with a lawsuit against Barclays Capital alleging the investment banker made improper margin calls that helped drive the jumbo lender/servicer into bankruptcy.

The SourceMedia 2011 Mortgage Regulatory Forum in Washington, DC, is around the corner. At the two-day event (Sept. 19-20, 2011) speakers will address the one issue in all of finance that, according to one insider, "sorely needs some sorting out," mortgage regulation and compliance.

Risk mitigation providers Equifax and Interthinx are enhancing their existing relationship by providing financial institutions real-time information regarding an individual's current employment and income status to pay for their loan.

Four individuals have been indicted for engaging in a scheme to defraud Wilmington Trust Federal Savings Bank and Malvern Federal Savings Bank of at least $35.5 million.

On Aug. 29, two men suspected of scamming homeowners struggling to avoid foreclosure will be arraigned in San Bernardino Superior Court on a 45-count criminal complaint.

Chicago's City Council published an ordinance late last week that would require banks, mortgage servicers and institutional investors to maintain vacant properties before the homes have gone through foreclosure.

The Federal Housing Finance Agency is looking at raising the 125% LTV cap on refinancing underwater borrowers while considering other enhancements to the Home Affordable Refinancing Program, according to agency acting director Edward DeMarco.

Obama Administration officials have identified several constraints on the HARP program -- including mortgage buyback risk -- that are keeping Fannie Mae and Freddie Mac seller/servicers from refinancing underwater borrowers.

Elizabeth Warren has headed back to Massachusetts, but she remains engaged in the partisan fight in Washington over the Consumer Financial Protection Bureau.

The Senate Banking Committee last this week approved a bi-partisan bill to reform the National Flood Insurance Program, extending it out for five more years.