Compliance & Regulation

The Federal Housing Finance Agency is preparing to back away from a controversial plan to overhaul the 25 basis point minimum servicing fee paid on Fannie Mae and Freddie loans, after intense, across-the-board industry opposition to the idea.

Is the Obama Administration starting to listen to the mortgage industry - and in a good way? Well, don't throw a party quite yet, but two major mortgage developments this week suggest that perhaps the White House is starting to understand that you can't have a housing recovery without the cooperation of lenders and servicers that make the loans.

NCUA said Tuesday it disagrees with a tentative ruling by a federal judge that would dismiss its suit against RBS Securities in the failure of WesCorp FCU, a ruling that could jeopardize similar suits against JP Morgan Chase, Goldman Sachs and Wells Fargo for the sale of risky mortgage backed securities to five failed corporate credit unions.

President Obama's State of the Union and a recent regulatory speech as prepared for a securitization group's conference drive home the fact that generally the government's view of whether it wants to encourage the industry to lend more or not remains conflicted.

Four federal financial regulatory agencies on Tuesday reiterated supervisory guidance related to allowance for loan and lease loss estimates associated with junior liens on home mortgages, suggesting renewed scrutiny in this area.

Federal banking regulators Tuesday issued new guidance to ensure that depositories are properly estimating potential losses on second mortgages and home equity lines of credit.

While the topic is old and familiar, the search for best strategies and a "new world order" in single point of contact borrower management continues.

The Consumer Financial Protection Bureau still has to make a key decision before it can finalize a regulation that will determine what kind of loans -- and features -- mortgage bankers can offer consumers without facing potential legal liability of up to $100,000 per unit.

Ally Financial Inc. disclosed Tuesday that it will incur a $270 million charge in the fourth quarter - and an overall loss for the entire firm - due to what it calls "penalties" imposed by regulators and the states tied to "foreclosure related matters."

If someone fell asleep in 1980 and woke up today, that person would be astounded at the progress the last three decades have brought. However, if someone fell asleep in the appraisal industry in 1980, and woke up in the appraisal industry of today, that person might barely notice a difference.