Compliance

Walter Investment Management has reached a settlement with federal authorities over reverse-mortgage practices at a business unit.

Two top Justice Department and CFPB officials said this week that they are seeing more instances of redlining and lenders steering minority borrowers into higher cost loans.

About a fifth of the $163 million in credit Citi has earned under terms of the 2014 settlement would be considered extra credit. Citi can earn extra credit by doing things such as completing loan modifications early or reducing loan-to-value ratios below certain levels.

Regulators are unsympathetic to lender losses created by loan officer mistakes, but even with a close reading of compensation rules, a compliant path is still unclear.

The Federal Housing Administration is re-issuing a loan certification proposal that has sparked industry concerns that it will make it easier for the Justice Department to sue lenders when they file claims for agency-insured loans that go into default.

More than half of real estate agents are planning to extend their sales contracts to provide more time for the closing process due to the coming implementation of new mortgage disclosures.

Fraud risk has diminished as a result of widespread changes that lenders have made to their origination practices, according to Fitch Ratings.

M&T Bank has agreed to pay $485,000 and change its lending policies to settle a lawsuit that accused the Buffalo, N.Y., company of racial discrimination in making mortgage loans.

Bank of America has settled a national class-action lawsuit brought by former employees who claimed they weren't paid for overtime work.

As marketing services agreements increasingly fall out of favor, a more level playing field may emerge where loan officers must aggressively compete on their skill and service to win referral business.

The Department of Housing and Urban Development's policies governing the Home Equity Conversion Mortgage program failed to detect instances where borrowers failed to comply with residency requirements, according to a report.

The Federal Housing Administration has resolved a long-standing conflict with municipalities and private companies that back "green energy" loans that is expected to benefit banks and other mortgage lenders. The next question is whether the regulator of Fannie Mae and Freddie Mac mortgages will do the same.

Two Florida men have been sentenced for their roles in a mortgage fraud scheme that resulted in about $24 million of losses for several financial institutions, including M&T Bank in Buffalo, N.Y.

Loans to first-time homeowners and others with low credit scores are a big part of the Federal Housing Administration's growth in purchase mortgages since the agency cut premiums.

The mortgage industry typically takes a conservative approach to employees promoting their personal brands. But it's time for lenders to take a lesson from the presidential hopefuls who have gained an upper hand by playing up their individual brands.

Heightened compliance concerns are forcing some lenders to consider offering themselves for acquisition, but this strategy can only be successful with a highly calculated and deliberate approach.

A Virginia woman has pleaded guilty to leading a mortgage-fraud ring that victimized hundreds of Hispanic residents in the northern part of the state and caused millions of dollars in losses for lenders.

There's nothing like a natural disaster to make people realize how important insurance is to the banking industry.

Banks have ramped up foreclosure activity in the past five months, with default notices, scheduled auctions and bank repossessions at their highest levels in two years. It's a positive sign that banks are finally clearing out all the distressed loans still lingering from the housing crisis. Meanwhile, banks remain cautious about new lending, partly because of regulatory actions.

The only thing more ominous than a CFPB investigation is when the FDIC and OCC join in on the action.