Compliance & Regulation

The policy that prevents mortgage servicers from initiating foreclosures in the name of Mortgage Electronic Registration Systems Inc. became permanent this week after parent company Merscorp Inc. finalized changes to its procedures and quality assurance manuals.

The recent uproar over regulators' "qualified residential mortgage" proposal has obscured the importance of another underwriting standard in the Dodd-Frank Act, the similarly titled "qualified mortgage."

The Senate Banking Committee will hold a hearing next Thursday on the nomination of Richard Cordray to head the Consumer Financial Protection Bureau.

The Federal Housing Finance Agency on Wednesday filed suit against UBS Americas for misrepresenting the quality of private label, non prime MBS it sold to Fannie Mae and Freddie Mac during the housing and mortgage boom.

Aklero Risk Analytics will offer discounted pricing, as well as enhanced delivery options, technology and support, to the member banks of the American Bankers Association’s Business Solutions subsidiary, under a preferred vendor agreement between Fort Washington, Pa.-based Aklero and the Washington-based ABA.

Elizabeth Warren will step down Aug. 1 from her post as special advisor to the Treasury secretary at the Consumer Financial Protection Bureau and Raj Date, a high-ranking official at the new bureau, will replace her.

Massachusetts Attorney General Martha Coakley told the state's Register of Deeds Association that she will not sign a multistate settlement with large mortgage servicers that includes a widespread release of liability for claims against the Mortgage Electronic Registry Systems.

Cornerstone Mortgage Co. on Tuesday said it will comply with a consent order issued by the Georgia Department of Banking and Finance and pay $90,000 in penalties to resolve claims that the Houston-based nonbank lender allowed unlicensed loan officers to originate loans.

Mortgage advertising that misrepresents terms, fees or the costs of loan products can trigger fines and enforcement actions under a final rule adopted by the Federal Trade Commission.

Ohio attorney general Mike DeWine has filed a lawsuit against a foreclosure rescue company, its affiliates and owner for violating multiple state consumer laws.