Compliance & Regulation

New U.S. private-label residential mortgage-backed securitization would have picked up in late 2010 if the slew of developing regulatory requirements taking shape weren’t out there, Jordan Schwartz, partner, Cadwalader, Wickersham & Taft LLP, told attendees at listeners to a webcast American Securitization Forum meeting last month.

The Conference of State Bank Supervisors has signed a memorandum of understanding with the Consumer Financial Protection Bureau's implementation team as a starting point in an effort to coordinate supervision between the two.

The Mortgage Bankers Association wants the Federal Reserve to ease up on its compensation rules allowing production managers who originate loans to share in the profits of their branch office.

The five largest servicers of residential mortgages – including Bank of America and Wells Fargo & Co. – may be the first to settle with 50 state attorneys general who are investigating foreclosure practices, according to combined press reports.

MDA Lending Solutions launched a suite of mortgage fraud prevention software based on the recommendations that Fannie Mae gave the industry in the Loan Quality Initiative.

Many customer advocates warn that identity theft is a problem for all--more so homeowners to whom such a problem can lead to default or foreclosure--need keep in mind during the year. Spokesperson for the National Foundation for Credit Counseling Silver Spring, MD, Gail Cunningham says that even though identity theft risk is higher during the holidays, customers need to regularly check their credit rating reports and other resources designed to help them avoid having access to credit suspended or compromised.

MDA Lending Solutions launched a suite of mortgage fraud prevention software based on the recommendations that Fannie Mae gave the industry in the Loan Quality Initiative.

Mortgage fraud costs billions every year and despite law enforcement efforts to curb it, the number of cases continues to increase. Various software products help lenders review loan files, monitor borrower trends and track potential problems and now the federal government will begin using some of that same technology in its own mortgage fraud investigations.

The Financial Crimes Enforcement Network has now proposed a requirement that NONBANK RESIDENTIAL MORTGAGE LENDERS AND ORIGINATORS, LIKE OTHER TYPES OF FINANCIAL INSTITUTIONS, ESTABLISH ANTI-MONEY LAUNDERING PROGRAMS AND COMPLY WITH SUSPICIOUS ACTIVITY REPORTS REGULATIONS.

If the Department of Housing and Urban Development extends RESPA's reach to warehouse lending, it would severely limit the availability of funds for mortgage lending and hurt the housing recovery, according to three industry groups.