Compliance & Regulation

Small mortgage banking firms believe they've been given the regulatory shaft by the federal government and are none too happy about the HAMP program as well, according to the just released MORTECH 2010 Report.

WASHINGTON—The Federal Housing Finance Agency's proposed ban of so-called private transfer fees goes too far, according to a group dedicated to fostering successful community associations.

WASHINGTON—The National Housing Conference is trying to get Treasury officials to pay more attention to the multifamily side of Fannie Mae and Freddie Mac as the agency ponders ways to restructure them as well as the nation's housing finance system.

Former Countrywide Financial Corp. co-founder and CEO Angelo Mozilo and two of his top lieutenants at the once highflying lender/servicer have agreed to settle a massive civil fraud complaint filed against them by the Securities and Exchange Commission.

The Pennsylvania Department of Banking's Bureau of Compliance, Investigation, and Licensing has launched an initiative to identify unlicensed mortgage activity in Pennsylvania. The department will target all mortgage licensees and is expected to continue into 2011.

To secure title insurance on REO sales, Bank of America has agreed to indemnify a major insurer if the title is challenged due to robo-signings and other improper foreclosure processing practices.

Federal Deposit Insurance Corp. Chairman Sheila Bair said the growing robo-signing scandal was symptomatic of the poor incentives that marred the securitization market, but she opposed a universal freeze on foreclosures.

A widely used third-party registry of mortgage assignments has found itself in the center of “foreclosure-gate,” amid allegations that its service is part of the greater issue of faulty or even illegal foreclosure practices plaguing the lending industry.

The Federal Housing Finance Agency expects servicers working for Fannie Mae and Freddie Mac to review affidavits before any foreclosure action, eviction, or REO sale.

Attorneys general from 49 states have agreed to coordinate efforts to investigate the nation's foreclosure mess and determine whether servicers violated state laws by cutting corners when filing their paperwork.