Compliance & Regulation

Over the last year several decisions and regulatory actions suggest industry standards are soon going to become the way of life for lenders.

As interest rates increase, prepayment speeds are falling precipitously, extending the maturities of mortgage-backed securities, especially the guaranteed variety. This trend is likely to cause future declines in MBS values.

Former Jefferies & Co. managing director Jesse Litvak was convicted in the only criminal case against an individual in connection with a U.S. program that used bailout funds to spur investment in mortgage-backed securities.

USMI, the new trade group being formed to replace the Mortgage Insurance Companies of America, will include all of the active carriers in the industry – except AIG's United Guaranty.

JPMorgan Chase & Co. agreed to give mortgage-bond trustees evaluating a proposed $4.5 billion settlement over bad loans an extra three months to consider signing onto the deal.

The Community Home Lenders Association is pointing to President Obama's recently released budget as proof that the Federal Housing Administration has leeway to lower premiums.

Carl Cole was sentenced for his role in a $30 million scam in the Bakersfield, Calif. market.

Scott Tomlinson at Flint Community Bank used a meeting with the agency's deputy director to speak his mind on the shortcomings of mortgage regulation.

A recent deal drew more than 65 buyers, addressing what initially had been a key concern about the new securities. Policymakers had originally questioned whether they would draw enough investors.

Private-label mortgage securities issuers should act now to make their industry more standardized and transparent, the senior adviser to the U.S. Treasury on housing policy said.