A U.S. district court judge in North Carolina has ordered Fannie Mae to forfeit $6.5 million in funds the secondary-market agency received from a convicted mortgage lender who defrauded Ginnie Mae of nearly $30 million.As part of the criminal proceeding against James McLean, investigators from the Department of Housing and Urban Development's Office of Inspector General traced the "criminally derived" funds to Fannie Mae. When Fannie directed Mr. McLean, who owned First Beneficial Mortgage Corp. in Charlotte, N.C., to repurchase some bad loans (which had been originated using straw borrowers), Mr. McLean sold the same false notes to Ginnie Mae to repay Fannie. As reported by The Wall Street Journal, Fannie did not inform regulators about the fraudulent loans. "They were not being a good corporate citizen by keeping that information to themselves," a HUD IG official said. Fannie recently received a 60-day extension to comply with the judge's order. "We will be reviewing the facts and, once we have completed the review, we will be working with the U.S. attorney's office to resolve any issues," Fannie spokesman Brian Faith said.
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A federal judge in Texas dismissed the Consumer Financial Protection Bureau's medical debt rule and prohibited states from passing their own laws prohibiting medical debt on credit reports.
7h ago -
Dr. Mark Calabria takes on the additional role of chief statistician of the United States; retired Ally Bank executive Diane Morais has joined First Citizens Bancshares' board of directors; MainStreet Bank has promoted Alex Vari to chief financial officer; and more in this week's banking news roundup.
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While refinances are behind the latest increases, the pace of purchase activity may be a stronger indicator of where the housing market sits.
July 11 -
The share of economists expecting a September rate reduction grew in the July Wolters Kluwer survey, but the October or later percentage also increased.
July 11 -
Rising home prices and softening sales offer a mixed view of a market that some say is shifting to favor buyers.
July 11 -
The notes are backed by home improvement installment loans originated by approved dealers in Foundation Finance Company's network.
July 11