Compliance & Regulation

Allowing the Federal Home Loan Bank System to invest in mortgage-backed securities is just one of many ideas being pitched to policymakers to revive the private-label market.

The Federal Housing Administration is changing a pair of rules on interest rate payments and resets to align with the Consumer Financial Protection Bureau's qualified mortgage rule.

Flagstar Bancorp is negotiating with the Consumer Financial Protection Bureau over potential violations in the Troy, Mich., company's default servicing business.

President Obama announced an initiative Tuesday with several large banks and mortgage servicers designed to make it easier for members of the military and their families to lower their mortgage payments.

Essent Group Ltd., the mortgage-insurer backed by George Soros and Goldman Sachs Group Inc., is beating older rivals in the stock market as the U.S. plans to tighten regulation of the industry.

Many active-duty service members are unaware that they are eligible to postpone mortgage payments under the Servicemembers Civil Relief Act. A group of major financial services companies have pledged to improve communication about this option, according to the Financial Services Roundtable's Tim Pawlenty and John Dalton.

It is clear that the Consumer Finance Protection Bureau has made the mortgage industry a top priority and its supervised entities have had to fall in line with its expansive rules and regulations quickly.

Many banks are aggressively closing branches to cut costs. Those banks must be mindful about branches in moderate- and low-income neighborhoods or risk downgrades after their next Community Reinvestment Act examination.

New rules are illuminating a once-shadowy market where servicers can be quick to modify loans and may have few qualms about principal reduction. Discounts or equity make such flexibility possible.

Fannie Mae, Freddie Mac and Ginnie Mae all overlooked warning signs about Taylor, Bean & Whitaker that make them partly to blame for the mortgage lender's multibillion fraud scheme, according to a government watchdog report.