The House and the Senate have included additional funding for the Office of Federal Housing Enterprise Oversight in an emergency supplemental appropriations bill to cover litigation expenses involving former Fannie Mae and Freddie Mac executives.The $120 billion supplemental bill approved by the House includes $7.6 million, which OFHEO Director James Lockhart requested earlier this year. The Senate bill provides $4.8 million. House and Senate appropriators will meet later this month to hammer out a final bill. Meanwhile, Mr. Lockhart has informed an administrative law judge that he will not recuse himself from a case in which OFHEO has charged former Fannie chairman and chief executive Franklin Raines, former chief financial officer Timothy Howard, and former comptroller Leanne Spencer with manipulating the company's earnings to maximize their bonuses from 1998 to 2003. The former executives requested Mr. Lockhart's recusal on the grounds that he is biased and should not be in a position to make a final decision in the case. OFHEO is seeking to recover $115 million in bonuses paid to the former executives. Once the administrative judge renders a decision, which is not expected until 2008, Mr. Lockhart can accept it or reject it.
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The industry analyst also described the significant refinance opportunity should rates decline slightly, and the threshold where home prices soften or firm up.
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The Arkansas-based company spent nearly four years on the M&A sidelines, grappling with asset quality issues and litigation tied to its 2022 acquisition of Texas-based Happy State Bank. Now it's signed a letter of intent to buy an unnamed bank.
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The company cited efforts to improve profitability behind its decision, with Popular joining a line of other banks in ending mortgage operations in 2025.
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The mortgage unit of Hilltop Holdings lost $7.2 million pretax in the third quarter with lower volume, following making a small profit three months prior.
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FHA loans accounted for about half of the annual rise in foreclosure starts and 80% of the rise in active foreclosures in September, according to ICE.
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The Federal Reserve Friday issued a set of proposed changes to its stress testing program for the largest banks that would disclose the central bank's back-end stress testing models, a move that the Fed had long opposed out of fear of making the tests easier for banks to pass.
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