Compliance & Regulation

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.

Nearly 165,000 borrowers have filed requests for reviews on how their servicer treated them in foreclosure—to see if they are entitled to damages—according to new figures released by the OCC.

Frederic Gladle pleaded guilty in January to one count of bankruptcy fraud and one count of aggravated identity theft for charging distressed homeowners fees in exchange for fraudulently delaying foreclosure sales.

It seems clear that changes made to the HARP program late last year have spurred a strong wave of usage that the industry didn’t anticipate. It doesn’t matter, of course: mortgage bankers are now writing new HARP loans left and right and competition is picking up thanks to Fannie Mae and Freddie Mac upgrading their AU systems.

Documenting and verifying a borrower’s income is one of the most basic tasks for an underwriter. While this appears to be relatively simple, validating income has become increasingly complex and susceptible to borrower fraud.

At least 25 community banks and thrifts have announced in recent weeks that they would stop filing financial reports with the Securities and Exchange Commission in response to a new law aimed at reducing red tape for small companies.

Looking to expand its risk, fraud and compliance management offerings, FIS recently acquired ICS Risk Advisors and Memento. Terms of the deal were not announced.