Compliance & Regulation

The extension of regulatory responsibilities to nonbank residential mortgage lenders and originators for suspicious activity reports and anti-money laundering efforts is far reaching, according to a recent discussion of the move by attorneys.

If you're looking for the next megabank to exit the mortgage sector the most likely candidate would be Ally Financial, the government owned bank holding company that controls No. 5 ranked servicer GMAC Mortgage/Residential Capital Corp.

Rep. Barney Frank, D-Mass, late this week introduced legislation that allows loan officers at mortgage brokerage firms to be more competitive when customers are shopping for a mortgage.

The California Department of Real Estate has issued a consumer alert about the growing number of scams being perpetrated against timeshare owners in connection with timeshare resales.

A federal judge rejected an attempt by the Securities and Exchange Commission to compel Wells Fargo & Co. to comply with an administrative subpoena, ordering the agency and the bank to meet to resolve their dispute over documents related to the agency's investigation of nearly $60 billion of residential mortgage-backed securities.

A key piece of case law supporting defaulted borrowers' fight against Mortgage Electronic Registration Systems Inc. was vacated Wednesday, after a federal judge ruled that a New York-based bankruptcy judge overstepped his authority when he issued a scathing opinion of the private loan registry.

Before leaving for recess Thursday, the Senate confirmed Martin Gruenberg, Thomas Hoenig and Jeremiah Norton to seats on the board of the Federal Deposit Insurance Corp. while also approving Thomas Curry as comptroller of the currency.

It was announced this week that the Consumer Financial Protection Bureau is planning on issuing a proposed rule changing the current loan officer compensation laws in the near future.

Mortgage brokers are complaining to the Consumer Financial Protection Bureau that the loan officer compensation rule is making it more expensive and difficult to close loans -- and it appears the bureau is listening.

While Senate Republicans seem to have largely moved past President Obama's controversial recess appointment of Richard Cordray to head the Consumer Financial Protection Bureau, it was clear Thursday that the House GOP has not.