Compliance & Regulation

Space Coast Credit Union, which filed suit last week against Barclays Capital over CDOs the investment bank sold to Eastern Financial Florida CU, is expected to file similar suits over the next few weeks against other Wall Street firms in the 2009 failure of the one-time $2.4 billion credit union.

Freddie Mac said it may suffer $690 million of losses due to the bankruptcy and fraudulent activities of Taylor Bean Whitaker, a Florida-based lender that failed 18 months ago and became the subject of a large criminal investigation.

Marty Gruenberg, the No. 2 at the Federal Deposit Insurance Corp., is expected to be nominated shortly as the agency's chairman, according to several sources.

A House Financial Services subcommittee Wednesday approved a bill that creates a five-member commission to steer the new Consumer Financial Protection Bureau instead of a single director.

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.