Compliance & Regulation

Amid continued weakness for the Federal Home Loan Bank System, its chief regulator said it is committed to getting the regional GSEs back to their core mission of lending to members.

In their first week back since the midterm elections, lawmakers are taking up the robo-signing scandal in multiple venues.

WASHINGTON—Under David Stevens’ lead, the FHA has implemented a whirlwind of reforms, including higher net worth requirements for government-approved lenders, steeper downpayments for borrowers with low FICO scores, and a new mortgage insurance premium structure that was approved by Congress. And he’s not done yet.His focus on reducing credit risk, while ensuring access to FHA financing, has been unrelenting. The commissioner has been tough on enforcement, too. He never forgets to mention that some 1,500 lenders have been kicked out of the FHA single-family program under his watch.

The Federal Housing Administration ended fiscal 2010 with a cash reserve ratio of just 0.50%, a slight decline from the same period a year ago, but strong enough that Congress will not have to use taxpayer money to bolster the fund.

The Federal Deposit Insurance Corp.'s upcoming safe harbor rules could add to real estate investment trusts' relative advantage in the securitized nonagency residential mortgage space.

On Nov 5, ARTHUR GONZALES DIAZ, an Anaheim resident was arraigned on seven felony counts of grand theft and one misdemeanor count of engaging in business as a real estate broker without a license. He is accused of targeting and defrauding Hispanic victims of more than $87,000 in bogus real estate deals. Diaz faces a maximum sentence of eight years in state prison.

Flagstar Bank has closed on the sale of a $474 million portfolio of non-insured non-performing residential first mortgages.

Considered to be a deal broker and careful listener by those who have worked with him in the past, Joseph Smith is winning near-universal acclaim as President Obama's pick to lead the Federal Housing Finance Agency.

House and Senate appropriators allotted $150 million for the Federal Housing Administration reverse mortgage program but now it appears those credit subsidy funds won’t be needed because of the new HECM Saver program.

When the 112th Congress convenes in January banking issues—broadly defined—will remain front-burner issues.As the new Congress organizes you can be sure of one thing: The Senate Banking Committee will look very different then than it does today, with at least five (and possibly more) members of the 23-member committee not returning for the new Congress.