The Office of Federal Housing Enterprise Oversight has issued examiner guidance that establishes corporate governance and compensation standards for Fannie Mae and Freddie Mac.OFHEO Director James Lockhart said many provisions of the guidance are "designed to prevent a recurrence of the serious problems found in OFHEO's special examinations" of the two government-sponsored enterprises. One provision requires employee agreements and contracts to include "claw-back" provisions so that anyone terminated for misconduct can be forced to return past compensation. The corporate government provisions call for a GSE chairman to be an independent board member. In addition, the guidance states that board members have broad responsibilities that "go beyond a short-term focus on maximizing shareholder value." OFHEO can be found online at http://www.ofheo.gov.
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While the three largest lenders now offer VantageScore, Bank of America Securities says two agency pulls boosts consumers scores, no matter which model.
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Federal Housing Finance Agency Director Bill Pulte said last week that it will slash the budget for its inspector general, spurring Senate Banking Committee Democrats to seek his testimony.
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The technology provider now counts two top 10 servicers among its customers and intends to use new capital to accelerate product development and add staff.
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Fitch Ratings, noting the reduction in Wells Fargo's balances and sale of non-agency servicing, said the bank no longer meets expectations at its old grade.
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ARMs accounted for more than 11% of rate locks, their largest share in nearly four years and up more than three percentage points over the past three months.
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The chief risk officer's oversight extends to the modernization of loan pricing and scoring, which the GSEs' oversight agency has been accelerating.
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