Fannie Mae and Freddie Mac would be required to report incidents of actual or suspected mortgage fraud to their primary regulator -- the Office of Federal Housing Enterprise Oversight -- under a proposed rule issued by OFHEO."This rule will ensure that Fannie Mae and Freddie Mac do their part to help combat mortgage fraud," said OFHEO Director Armando Falcon Jr. "The enterprises will now have a clear obligation to report fraud and help prevent a repeat of cases like the First Beneficial matter." In a federal investigation of First Beneficial Mortgage Corp., Charlotte, N.C., it was discovered that Fannie officials suspected FBMC had sold Ginnie Mae fraudulent loans, but they did not inform Ginnie. OFHEO is issuing the proposed rule for a 30-day comment period. Separately, OFHEO has issued a directive requiring notification by Fannie and Freddie when they become involved in investigations and legal proceedings, as well as civil and criminal actions.
-
The new Financial Stability Oversight Council report also recommends an expanded Ginnie Mae PTAP facility and an industry-funded liquidity resource.
1m ago -
The publicly traded title holding companies all had stronger earnings as the mortgage market improved from one year prior.
1h ago -
One in every 37 residential properties nationwide had a loan-to-value ratio of 125% or greater to begin the year, according to a new report.
1h ago -
There's temporary leeway on formal compliance with replacement-cost value requirements in order to sort out insurer concerns with a recent re-emphasis on them.
2h ago -
Max Levchin, CEO of the buy now/pay later lender, said recent tests show young adults prefer interacting with intelligent chatbots over phone-based agents, but the company doesn't foresee major cost savings from generative AI for a few more years.
4h ago -
Test your knowledge of the biggest mortgage headlines of the week. No. 2 pencil not required!
10h ago