Compliance & Regulation

WASHINGTON—It seems no one is going to escape scrutiny now that the 50 state attorneys general and the GSEs are requiring almost every servicer to review their foreclosure processing procedures.

Major mortgage servicers’ internal reviews of foreclosure documents extend far beyond robo-signers’ affidavits verifying a borrower’s mortgage debt.

The California 4th District Court of Appeal held that brokers for home sellers have a legal duty to tell buyers about mortgage problems such as a short sale where existing lender may not accept less than what is owed and that might prevent sales from closing. Brokers are "obligated to disclose to the buyers" when there is "a substantial risk that the seller [can] not transfer title free and clear of monetary liens and encumbrances."

The American Bankers Association is warning congressional leaders that a nationwide moratorium on foreclosures would "further depress home prices and disrupt an already fragile economy."

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.