Compliance & Regulation

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.

The Consumer Financial Protection Bureau has decided to shift course before finalizing changes to the good faith estimate form, a project the bureau has been working on diligently since last summer.

What will be the story of this decade in the mortgage industry? It will be the return of the market to normalcy (or a new normal). The question is: when?

The answer to that question is: tight credit with unemployment being the runner-up. Although some naysayers believe the job picture hasn't improved much, there are many realists who think otherwise. But one thing we can agree upon is this: employment is not booming.

Citigroup has finally unloaded the rest of its minority stake in the Mumbai-based Housing Development Finance Corp. as part of its capital planning efforts, but will continue other business relationships with the company including investment and cash management services.

Weeks after state and federal officials said they would ensure borrowers still had the right to sue servicers even under the $25 billion mortgage settlement, the Office of the Comptroller of the Currency appears ready to follow suit.

FACTS: On Feb. 13, Patricia Ann King of Bakersfield, pleaded guilty to aiding and assisting the preparation of a false tax document and to three counts of mail fraud for her role in a mortgage fraud scheme.