Compliance & Regulation

The government wants to add Wells Fargo Vice President Kurt Lofrano as a defendant to a lawsuit that claims the bank was reckless in underwriting mortgage loans it falsely certified as eligible for Federal Housing Administration insurance.

JPMorgan Chase’s $13 billion mortgage-backed securities settlement reinforces the industry’s need to keep tabs on originations, even if reform is supposed to end this kind of problem.

Maintaining a compensation distinction is very risky in the event that the brokered products are viable alternatives for borrowers and could essentially compete against self-funded alternatives.

Kareem Serageldin marked up the collateralized debt obligations to meet targets and boost yearend bonuses for his $5.35 billion trading book, prosecutors claimed.

The Federal Reserve vice chair is getting closer to being in the driver’s seat on Fed issues that affect home loan trading, including how mortgage bonds factor into liquidity coverage ratios.

A letter has been sent to the Federal Reserve and the Office of the Comptroller of the Currency demanding more information about the settlement.

The Oct. 31 rejection of North Carolina Democrat Mel Watt’s nomination to head the Federal Housing Finance Agency led to the move.

New forms need to be revised to account for recent regulatory changes, but laying the groundwork for the new documents will be tough.

The bank struck an agreement this week to settle potential state and federal civil claims of misrepresentations in mortgage-bond sales by the lender and companies it acquired.