Compliance & Regulation

Efforts to minimize LoSses in general are attracting a lot of market attention when it comes to short sales, but the fraud factor in this area is sometimes overlooked.

The purchaser or assignee that acquires the loan must provide the required disclosures no later than 30 days after the date on which it acquired the loan. This applies to any consumer credit transaction secured by the principal dwelling of the consumer. This became effective May 20 to all mortgage loans sold or otherwise transferred on or after that date.

A new mortgage insurance premium structure the Federal Housing Administration is slated to implement in October could open the door for private mortgage insurers to recapture lost market share from the government.

NCUA said that projected losses for the National CU Share Insurance Fund surged to a record $1.2 billion at the end of August, forcing the agency to assess a 12.4 basis point, or $933 million, premium, in order to replenish the fund's diminishing reserves.

The Federal Reserve Board is coupling examinations of bank mortgage portfolios with offsite analysis of housing and mortgage trends under various economic and financial scenarios.

Fannie Mae and Freddie Mac are urging their servicers to review foreclosure processing procedures to ensure they are in compliance with applicable state laws and regulations.

The Dodd-Frank financial reform bill is a beast. At more than 2,000 pages in length, it is an omnibus bill. And much of it was written with the mortgage business in mind.

The Federal Reserve Board is disbanding its Thrift Institution Advisory Council, replacing it with a broader board that includes banks, thrifts and credit unions.

Rep. Maxine Waters, D-Calif., has introduced legislation that prohibits covenants on residential mortgages entitling investors to receive transfer fees every time a certain property is sold.

As I stated in my testimony in May before this subcommittee, the main purpose in addressing housing finance reform should be to promote the efficient provision of credit to finance mortgages for single-family and multifamily housing. Legislation is needed to restructure and strengthen our nation’s housing finance system and to resolve the enterprise conservatorships.