Compliance & Regulation

As part of the settlement, Royal Bank of Scotland has agreed to refrain from financing, purchasing or securitizing subprime mortgages unless it has sufficiently reviewed the underlying loans.

Some key regulatory issues still need to be addressed in order for private-label mortgage-backed securities to make a comeback.

A heightened focus on due diligence and loan file reviews has made it imperative for lenders to incorporate quality control technology and processes that can minimize repurchase risks.

A Washington research executive at Keefe Bruyette & Woods believes GSE reform may move quicker if Obama gets reelected, but not by much.

Comptroller of the Currency Thomas Curry said the agency recognizes that some aspects of the provisions pertaining to mortgages could impose a serious burden on community banks and thrifts.

Housing advocates Bob Gnaizda and John Hope Bryant are pitching the Dignity Mortgage, a loan that could be made to nonprime borrowers with built-in protections and incentives for both borrowers and lenders.

The Consumer Financial Protection Bureau will supervise debt collection companies, a move that marks the second time it has asserted its authority under Dodd-Frank to oversee large nonbanks outside the direct lending sphere.

One servicing executive tracking the deal said Nationstar is favored to win the bid.

A plan to extend the corporate bond transparency system to mortgage-backed securities is moving forward.

Aside from those potentially game-changing rules, banks are also facing higher guarantee fees by Fannie Mae and Freddie Mac and higher premiums for Federal Housing Administration loans.