Compliance & Regulation

The 27-page term sheet handed to the five largest residential servicers last week is a detailed, dense list of requirements that, if implemented as proposed, would fundamentally change the relationship between servicers, investors and borrowers.

A majority of business economists believes federal regulators should require a high down payment on "qualified residential mortgages" that will be exempt from risk retention.

The National Association of Independent Housing Professionals on Monday sued the Federal Reserve Board in U.S. District Court, seeking to block the agency's controversial loan officer compensation rule, which becomes operative April 1.

The Department of Housing and Urban Development's inspector general found "systemic problems" in lenders' compliance with underwriting requirements for Federal Housing Administration loans.

Catherine Kissick, a well known figure in warehouse lending circles, late Friday pleaded guilty to criminal charges tied to the collapse of Taylor, Bean & Whitaker, a large FHA lender based in Ocala, Fla.

Connecticut attorney Richard Novak pleaded guilty last week in U.S. District Court to making a false statement on a federal mortgage loan document.

As scammers continue to prey on vulnerable, financially stressed homeowners, the California Department of Real Estate is warning consumers to be wary of promises for loan modification and mortgage relief.

In violation of the Servicemembers Civil Relief Act, JPMorgan Chase has been overcharging about 4,000 military members on their home loans and improperly foreclosed the homes of 14 military families.“Chase has a very strong history of supporting military and veterans’ organizations, which makes the mistakes we made here particularly painful,” JPMorgan Chase said in a statement.

ML 11-02 –Quality Control Plans must be updated. QC plans must now provide for monitoring third party originators and underwriters. Review must include thresholds based on volume, past experience and other factors as set forth in 4060.1 Rev 2, Para. 7-6. QC Plan must include methodology of review, results and corrective actions taken.

With the housing finance market so dependent on government-backed mortgages, federal regulators -- with the blessing of the Treasury Department -- have decided to exempt Fannie Mae and Freddie Mac-issued bonds from the new risk retention rules.