Compliance & Regulation

While investing in domestic real estate is simple in theory, it is rarely easy in its execution. There is much involved—from banks’ stringent requirements and the glut of paperwork to overriding labor, market and macroeconomic conditions.

SunTrust Banks Inc., which has already lost hundreds of millions after repurchasing bad mortgages, could lose up to $150 million as it deals with the cost of mortgage-servicing problems.

HUD is increasing its enforcement efforts to recoup millions of dollars in losses on improperly underwritten FHA-insured loans, holding lenders accountable for their actions, Housing secretary Shaun Donovan told a Senate panel Tuesday morning.

Boston-based Highfields Capital Management, which owns a 7.7% stake in CoreLogic, accused CoreLogic's board of directors' "desire to maintain control rather than doing what is in the best interest of shareholders."

Mortgage industry compliance and risk management are expected to become “quite substantial in the next five years,” according to one of the co-founders of Digital Risk, a company planning to add 1,000 full-time professional positions in this area during 2012 alone.

A proposed $8.5 billion Countrywide RMBS settlement has returned to New York state court in a move that has been largely expected to speed its approval, with Fitch Ratings now estimating it could move ahead in mid-2012.

After months of pressure from Congress and consumer advocates, the Federal Reserve Board released new details Monday about how mortgage servicers plan to follow regulatory directives that they improve their foreclosure systems.

The plan to decrease the government-sponsored enterprises' market share is "credit positive" for some parts of the market, such as stronger mortgage insurers, but "credit negative" for others, such as GSE debt, according to Moody's Investors Service.

Some CMBS special servicers are charging undisclosed fees to borrowers seeking modifications, according to Fitch. And there is concern that this may be the beginning of a trend.

The Federal Housing Administration is following through with its pledge to increase upfront and annual insurance premiums on its forward single-family business.