Compliance & Regulation

A San Diego judge recently ruled that there is enough evidence for a former local police officer and his wife to stand trial on felony charges in connection with the trashing of their foreclosed French Valley home, which was financed by San Diego Metropolitan Credit Union.

Almost three years to the day of seizing IndyMac Bank, the Federal Deposit Insurance Corp. launched a civil action against its former CEO, saying he "negligently" allowed the thrift to keep making risky loans despite signs of market stress.

Unemployed borrowers with an FHA loan will not be required to make any full payments for at least 12 months – and possibly more – under a new HUD program unveiled Thursday morning.

Two separate MBS-related regulatory settlements involving hundreds of millions of dollars restitution to investors were seen late last month and the Securities and Exchange Commission indicated similar cases would remain a priority for it going forward.

As federal agencies work on creating a new servicing fee structure, the Mortgage Bankers Association is recommending they consider a reserve account that would be used to pay the higher costs of servicing delinquent loans.

In a few weeks the Consumer Financial Protection Bureau officially will open its doors, but it will be "months" before the agency promulgates any new servicing regulations, according to a top official there.

Rep. Gary Miller, R-Calif., has drafted a GSE reform bill that would merge Fannie Mae and Freddie Mac and convert them into a secondary market utility that issues government-backed mortgage securities.

CUMIS Insurance Society is asking a federal bankruptcy court to block an effort by a former senior loan officer of Staley CU, who filed for bankruptcy while she was on her way to prison for a mortgage fraud, to discharge $1.6 million in restitution she owes the credit union insurer.

Mortgage servicers participating in the Home Affordable Modification Program are starting to use principal reduction more often to help underwater borrowers and make their payments more affordable.

The Department of Housing and Urban Development has issued new guidance on its policies for approving and recertifying condominium projects that are eligible for Federal Housing Administration financing.