Compliance & Regulation

Suspicious activity report filings involving mortgage fraud rose by 31% in the first quarter, largely as a result of the large number of repurchase demands by investors.

The Consumer Financial Protection Bureau has posted newly revised prototypes of a two-page "Loan Estimate" disclosure on its website for a second round of input on the way closing costs are presented.

A state appellate court in New York rejected the shield of the federal tax exemption for federally chartered credit unions and upheld a lower court ruling that Hudson Valley FCU and all of the state's federally chartered credit unions are liable for millions of dollars in New York State mortgage recording taxes.

A Dallas homebuilder pleaded guilty last week in the U.S. District Court for the Eastern District of Texas to a mortgage fraud scheme against homebuyers.

Freddie Mac has entered into a proposed settlement with creditors of the Taylor, Bean & Whitaker Mortgage Corp. bankruptcy that will allow the GSE to gain control of TBW-related mortgage servicing rights and $54 million in loan receipts in TBW deposits.

There are a number of new rules and regulations relating to mortgage lending that credit unions must track closely, or risk penalties, fines, or even civil or criminal liability.

In the first two of what promises to be several legal actions seeking compensation for the corporate credit union crisis, the National Credit Union Administration sued two of the biggest Wall Street banks last week seeking to recover losses from the now-toxic mortgage-backed securities they sold to four of the five failed corporates.

Short sale fraud is estimated to rise by 25% in this year of 2011. Unnecessary losses related to risky short sales are approximately $375 million annually according to CoreLogic.

Deutsche Bank and a New Jersey homeowner have reached a compromise to settle a foreclosure action that has been taking place for the last two years.

A court-appointed judicial hearing officer who previously had said e-mails sent between New York Insurance Department officials showed bias regarding the restructuring of bond insurer MBIA Insurance Corp. last week reversed his decision.