Compliance & Regulation

Though private equity has largely been left out of bank failures of late, one firm found its way in this past Friday.

The Federal Deposit Insurance Corp. hopes to sell a mortgage-backed security collateralized by at least $500 million of performing residential whole loans by the end of this month through a private placement deal, investment banking sources told National Mortgage News.

In wake of the subprime meltdown and rising foreclosures, Congress passed legislation in late 2008 authorizing the FHA to refinance up to $300 billion of underwater mortgages to help at-risk borrowers stay in their homes. To date the program has resulted in the agency endorsing just 64 loans under the "Hope for Homeowners" moniker. To call this once-heralded effort a disappointment is being generous.

A New Jersey loan modification company and its owners have agreed to a judgment of $5,051,253 to settle civil charges they defrauded homeowners who sought help in avoiding mortgage foreclosure.

The Department of Housing and Urban Development is selling some seized homes in the Cleveland area for as little as $100.

Fannie Mae and Freddie Mac's common and preferred stock began trading on the over-the-counter market Thursday morning, as directed by their regulator.

After months of raising standards for single-family lenders, the Federal Housing Administration tightened guidelines for multifamily mortgages for the first time in the 40 years it has insured such loans.

Comptroller of the Currency John Dugan said he will step down August 14 after nearly completing his five-year term as the top supervisor of national banks.

Mortgage bankers originated $22.3 billion of Federal Housing Administration backed single-family loans in May, down 3% from April, according to new figures released by the government.