Compliance & Regulation

The tax provision would help distressed homeowners seeking workouts and short sales from being penalized by the IRS.

Bank of America Corp. should face Securities and Exchange Commission claims over $855 million in mortgage-backed securities, said a judge who last week advised that a Justice Department complaint over the same securities should be thrown out.

Although the national outlook continues to improve as the worst of the housing crisis abates, foreclosures and real estate owned properties remain a concern for many markets throughout the country.

Regulators are going against Congressional intent in their latest "qualified residential mortgage" proposal, former Rep. Barney Frank said.

As mortgage interest rates rise and fewer prime borrowers are in the market to refinance, lenders are starting to loosen credit standards again, years after the housing crisis sparked a flight to quality. But amid growing compliance requirements and increased regulatory scrutiny, will this time be different?

Freddie Mac began offering the deals last year with the goal of sharing more risk with the private sector at the direction of its regulator.

The Department of Housing and Urban Development reached settlements with Bank of America and mortgage banking firm James B. Nutter & Co. over allegations that the lenders failed to perform due diligence in underwriting Home Equity Conversion Mortgage loans.

There's been froth in the U.S. housing markets in recent years. But a drop in activity this year means a bubble won't be a problem for 2014.

The minimal staffing and low net worth of these companies could be a precursor to an uptick in bad loans.

The lender can experience problems selling a loan that loses qualified mortgage rule's protection. The lender also could be stuck in a vulnerable position if that loan ultimately defaults.