Compliance & Regulation

Two Prior Lake, Minn., men have pleaded guilty in Federal Court in Minneapolis for their roles in a scheme that allegedly defrauded mortgage lenders out of more than $2.5 million by causing them to make loans based on false information.

It is no understatement to comment that the Internet has transformed the mortgage lending industry in many ways. The point-of-sale has been influenced tremendously, with borrowers quickly becoming accustomed to rate shopping during the refinance boom and lenders providing an ever-increasing number of online tools to cement relationships.

Less competition and more work for the ones that are left. Problem is that many of the loan officers were classified as independent contractors when they did not meet the criteria under federal or state law. Especially in California.

Congress has passed legislation to restart the Rural Housing Service's single-family program, but it appears the agency may keep the loan guarantee portion of it on hold for a few more months.

The Comptroller of the Currency Tuesday promoted Karen Solomon to be the agency's new deputy chief counsel.

The Federal Deposit Insurance Corp. said Tuesday it would create two new divisions—one to handle systemic resolutions and the other devoted to consumer protection—in response to the enactment of the regulatory reform law.

One blueprint for turning Fannie Mae and Freddie Mac into privately run enterprises that is getting some play at Treasury comes from Redwood Trust —the firm that made headlines this spring when it pulled off the first private-label jumbo securitization in almost two years.

A Northwest thrift that acquired a failed bank just seven months ago has entered into a memorandum of understanding with federal regulators.

The Federal Housing Administration is clamping down on refinancings where a second lien is involved.

Scrutiny of so-called free credit report services is increasing as the Federal Trade Commission, in keeping with its consumer protection mission, has intensified its ongoing scrutiny of credit-related services due to concerns that, among other things, scores can affect would-the ability to get a loan.