Compliance & Regulation

The Ibanez case ruled against the lender in a lender-borrower dispute over the validity of a foreclosure proceeding is not just a highly political homeowners’ protection issue. It sets a precedent expected to greatly affect the mortgage industry in the future.

HUD has issued its new mortgagee letter ML 11-02. The requirement is all Direct Endorsement lenders must update their respective quality control plans to include review of Sponsored Third Party Originators and the FHA insured loans they generate. The update shall document the methodology used to review the sponsored TPO’s, review all TPO loans that go into default during the first six months (i.e. become 60 days past due within the first six payments.) (ml 2011-2)

The Treasury Department's continued silence on its pending plan for the future of Fannie Mae and Freddie Mac is fueling suspicion that the administration does not have a concrete proposal.

Now that the office parties have all concluded and the wrapping paper has hit the recycling bin, we must all turn our attention to this brave New Year. In our personal and professional lives, we will seek out that old comfortable standby, the New Year’s resolution. It would be comforting to think that recovery of the mortgage industry is simply a matter of a few timely resolutions.

Although a recent Massachusetts court ruling on foreclosures initially appeared to be bad news for mortgage firms trying to seize properties, it appears that it may actually help the industry.

Fraud definition (yesterday’s version):1.The intentional deception resulting in injury to another person.2.Something intended to deceive; deliberate trickery intended to gain an advantage.

Although Fannie Mae and Freddie Mac are toying with the idea of changing their servicing contract with seller/servicers, the Government National Mortgage Association is not at this time.

The American Bankers Association is urging banking regulators to tailor the "qualified residential mortgage" standard so that the majority of loans originated by depository institutions are exempt from risk retention.

Despite reports to the contrary, Rep. Scott Garrett says Republicans still intend to privatize Fannie Mae and Freddie Mac after a suitable transition.

The Mortgage Bankers Association is seeking to overturn a recent Department of Labor interpretation that requires mortgage lenders to pay their loan officers overtime pay.