Compliance & Regulation

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.

The House Financial Services Committee late this week voted to terminate a Federal Housing Administration principal reduction program designed to refinance underwater borrowers.

Federal regulators issued a tough opening salvo in settlement talks with the nation's largest residential servicers, presenting them with a 27-page term sheet that would force major changes to the industry and step up loss mitigation efforts.

The Center for Responsible Lending late this week weighed in on the 'qualified residential mortgage' debate, saying that a 20% down payment threshold will materially shrink the overall borrower market.

The Federal Housing Finance Agency has not altered its view regarding indemnification post-conservatorship as a prerequisite for attracting and retaining skilled officers and directors.

Georgia Senator Johnny Isakson declared on the Senate floor late Wednesday that if federal banking regulators have their way with the risk retention rules — namely a 20% downpayment stipulation — they will derail the nation's housing recovery.

The HAMP and HAFA programs have not done the jobs they set out to do, relieving several million Americans from the distress of their inability to make their mortgage payments. But with the size of the job they were commissioned to do, it is too early to pull the plug on them.