Compliance & Regulation

The former chief executive of Taylor, Bean & Whitaker Mortgage, Paul R. Allen, admitted to his role in what prosecutors say was a $1.9 billion fraud that included attempts to deceive the federal bank bailout program.

To clear up mortgage ownership issues quickly, banks and servicers should set up a multi-billion dollar fund to pay homeowners who are willing to accept their ownership of the mortgage note, according to Federal Deposit Insurance Corp. chairman Sheila Bair.

Despite an 11th-hour reprieve that delayed the Federal Reserve's loan officer compensation rule from taking effect at least until Tuesday, the mortgage industry's chances of overturning the rule are slim.

Only a "small fraction" of the nation's 3,000-plus counties will be impacted when the formula that determines the conforming loan limit changes in October, according to an analysis by the Federal Housing Finance Agency.

Mortgage fraud risk is highest in areas with the greatest amount of foreclosures, according to the annual mortgage fraud risk report developed by Interthinx.

CoreLogic Credco, a nationwide provider of merged credit reports, has launched a new data-enhanced version of ENCORE designed to improve the accuracy of loan risk detection and assessment.

Jo’Mell Thomas pleaded guilty in District of Connecticut Court to conspiracy to commit wire fraud from his participation in a mortgage fraud scheme.

A lawsuit filed Monday in Hennepin County District Court in Minnesota by Attorney General Lori Swanson alleges that Meredian Financial Corp. of Costa Mesa, Calif., pretended to be homeowners' current mortgage company in order to gain their trust, then collected fees for refinancing services that were not delivered.

Home builders and Realtors are urging Republican leaders on the House Financial Services Committee to postpone action on eight GSE bills, claiming this could impede a recovery in the housing market.

Certain of the nation's megaservicers have agreed to sign a modified consent order with Federal regulators as part of a first step to inking a final settlement between the industry and 50 state attorneys general, sources familiar with the matter said on Friday.