Compliance & Regulation

Lenders that order appraisals to support mortgage loans may be tempted, as a cost control measure or otherwise, to limit the number of approaches to value that an appraiser uses in performing the appraisal. But those lenders, and their AMCs, should proceed with caution. The uniform appraisal standards, known as USPAP, recognize three main approaches to value: the sales-comparison approach, the cost approach, and the income approach.

James Freis was dismissed from his position as director of the Financial Crimes Enforcement Network last week after refusing to step down, a person familiar with the situation confirmed Monday.

Richard Fisher, president of the Federal Reserve Bank of Dallas, is not shy about the fact he's a former banker. That's why it's all the more surprising that he's one of the leading advocates for dramatically reducing the size of the largest banks—arguing that failing to do so will jeopardize the health and stability of the financial system.

The Consumer Financial Protection Bureau, by its mere name proclaims its sole purpose is to protect the consumer’s interest in financial matters. But what happens when the rules and regulations designed to benefit the borrower actually harm the borrower?

The Federal Deposit Insurance Corp. has sued Bank of America, Citigroup, JPMorgan Chase and other banks for a cumulative $92 million in damages on mortgage-backed securities, alleging that shoddy appraisals and other underwriting defects tainted their sale.

Bank servicers are doing what they can to avoid depressing home prices, by focusing on reducing foreclosures rather than flooding the market with their backlog of properties.

To address investor preference for Fannie Mae MBS over Freddie Mac bonds, the GSE regulator could create a single instrument that includes loans guaranteed by both, according to speakers at an American Securitization Forum in Washington.

Declines in the mortgage delinquency rates on all one-to-four unit residential loans outstanding during the first quarter add another layer of affirmation to previous data that suggest some level of market stabilization.

A top reason why borrowers continue to be intimidated by the prospect of facing their lender-servicers is fear they will be taken advantage of.

The House of Representative late last week passed a defense authorization bill that includes an expansion of the Servicemembers Civil Relief Act to shield more military families from foreclosure while increasing penalties on lenders for compliance violations.