Compliance & Regulation

The city of Los Angeles filed a civil lawsuit Wednesday against Deutsche Bank, claiming the German bank failed to maintain foreclosed properties and illegally evicted hundreds of low-income renters.

Current and expected regulatory compliance requirements and loss mitigation challenges are pressing servicers to address shortages in well-trained, experienced staff.

The House Capital Markets and GSE subcommittee late Tuesday advanced a bill to create a U.S. covered bond market but major issues need to be worked out first before the measure is ready for a full committee markup.

Frank Keating, the head of the American Bankers Association, late Tuesday reneged on his endorsement of Elizabeth Warren as director for the Consumer Financial Protection Bureau within hours of saying the trade group would "be fully supportive" of her nomination.

Investigators keep finding skeletons in the closets of companies that participated in the mortgage boom. In a case the government filed against Deutsche Bank AG on Tuesday, the “closet” part is literally true.

Along with the Federal Reserve and the Office of Thrift Supervision, we announced cease-and-desist orders against 14 large servicers and two service providers that are intended to correct the deficiencies we found both in mortgage servicing and foreclosure processing.

The Shadow Financial Regulatory Committee is warning that proposed risk retention rules might not deter some MBS issuers from securitizing poor quality mortgages.

The servicing-related consent orders that the nation’s megabanks signed to appease banking regulators could impact smaller servicers too, according to consultants at Newbold Advisors.

The loan officer compensation rule, among other regulatory changes, is beating down the entrepreneurial spirit of the loan originator, but at the same time, LOs need to understand these changes and put them into their business plans, said a past president of the Arizona Mortgage Lenders Association.

The White House keeps insisting it has not made a final choice for director of the Consumer Financial Protection Bureau, but there is a growing expectation that Elizabeth Warren will soon get the nod.