Compliance & Regulation

CoreLogic released a tool Monday to let servicers run automated checks on pools of loans to determine if borrowers are protected from foreclosure by the Servicemembers Civil Relief Act.

There's an awful lot of distressed mortgage product out there. Using the MBA's most recent nationwide foreclosure percentage of 4.5% and applied to a universe of $9.5 trillion in residential holdings, that's $374 billion in distressed loans right there.

The National Credit Union Administration said Monday it has filed two suits against securities firms alleging violations of federal and state securities laws and misrepresentations in the sale of hundreds of mortgage-backed securities.

As if depressed property values squelching the real estate market weren't enough of a challenge, there is another big factor working against what are attractive interest rates: regulatory and legislative uncertainty.

Radian Asset Assurance announced the successful acquisition of Municipal and Infrastructure Assurance Corp. (MIAC) on Thursday, following the approval of its regulator, the New York Insurance Department.

More than 10 states recently made legislative and/or regulatory changes related to real estate loans and foreclosures, according to MRG Document Technologies, which regularly tracks such compliance changes.

Ultimately, Ocwen Financial Corp.'s pending purchase of Litton Loan Servicing is likely to benefit the investors in the $45 billion of mortgages that Litton manages and some of the homeowners. That's because Ocwen has a record of moving faster than Litton to resolve troubled loans, either through modification or foreclosure.

Wells Fargo & Co. decided to exit reverse mortgages after federal officials insisted it foreclose on elderly customers who were behind on property tax and insurance payments, a Wells executive wrote in an email to business contacts Friday.

Two loan processors who defrauded lenders of $6 million have been sentenced to prison terms that will last from two to five years.

The final defendant who participated in a mortgage fraud ring conspiracy that resulted in $10.6 million in loan proceeds through false property transactions has been sentenced.