Compliance & Regulation

WASHINGTON-The odds may be against them, but mortgage industry groups are staging a major push to pass a standalone Federal Housing Administration reform bill before the Senate adjourns Aug. 7 for a month-long recess.

There has been a lot of talk about government protecting mortgage investors in the wake of the downturn, but Tal Franklin, an attorney whose law firm represents a clearinghouse of private-label residential mortgage-backed securities investors, says it depends.

U.S. Central Federal Credit Union reported late Monday that growing losses on its portfolio of private-label mortgage-backed securities created a $39.4 million loss for its second quarter, and an $84.8 million loss for the first-half of the year.

Bank of America has agreed to pay $600 million to settle several class action lawsuits filed by Countrywide Financial Corp. shareholders over the lender's subprime program, according to a report in The Los Angeles Times.

Hudson Valley Federal Credit Union, Albany, has appealed its challenge of the state's mortgage transfer tax - rejected by the lower court - arguing the federal credit union charter exempts it from all state taxes.

Treasury secretary Timothy Geithner wants federal regulators to move quickly in formulating new underwriting standards and disclosures for mortgages mandated under the Dodd-Frank Wall Street Reform and Consumer Protection Act.

Thirteen former officers and directors of New Century Financial Corp., have agreed to pay more than $90 million to settle all civil claims in a series of federal and private lawsuits stemming from the collapse of the once high flying subprime giant.

WASHINGTON — While the formation of the Financial Stability Council is meant to help regulators put an end to "too big to fail," many are wondering if the panel itself will prove too big to manage.

WASHINGTON — Senate appropriators are annoyed at the slow implementation of the government's Home Affordable Mortgage Program and want residential servicers — including the nation's megabanks — to be held accountable.

The state of the U.S. banking system has "improved significantly" since the collapse of Lehman Brothers in the fall of 2008, but lending standards remain too tight, according to Federal Reserve Board chairman Ben Bernanke.