Fannie Mae has agreed to pay $400 million in civil penalties to the Securities and Exchange Commission, and Office of Federal Housing Enterprise Oversight to settle allegations of wrongdoing in connection with its $10.8 billion accounting scandal.As part of the settlement the GSE will implement corrective measures, including growth limits, and remedial actions against current and former employees. OFHEO also requires that its board submit governance policies and procedures to the agency within 180 days. In a statement Fannie Mae chairman Stephen Ashley said, "We are pleased that we have been able to reach a comprehensive agreement and bring these matters to a conclusion." In a shareholder lawsuit, Mr. Ashley and other directors -- past and present -- are accused of turning a blind eye to the company's accounting woes because they were involved in "mutually beneficial relationships" with the GSE and did not operate as independent directors. Fannie Mae is trying to get the lawsuit dismissed.
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Title insurers, whose activity is highly correlated to mortgage production, wrote $15.1 billion in premiums during 2023, down from $21 billion in 2022 and $26.2 billion for the year before that.
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The Federal Open Market Committee held the federal funds rate at current levels, citing "lack of further progress" toward meeting inflation goals.
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Both quasi-public mortgage investors have new requirements for when borrowers question valuations. Freddie Mac is expanding use of title insurance alternatives.
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A new policy directive aims to fortify critical infrastructure by enhancing collaboration between U.S. intelligence agencies and systemically important financial entities.
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Mark Warren and Thom Tillis have introduced the Secure Artificial Intelligence Act of 2024 to address the unique risks of AI.
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The April 26 update came two days after the group received preliminary approval for the Sitzer/Burnett agreement.
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