Compliance

While investing in domestic real estate is simple in theory, it is rarely easy in its execution. There is much involved—from banks’ stringent requirements and the glut of paperwork to overriding labor, market and macroeconomic conditions.

SunTrust Banks Inc., which has already lost hundreds of millions after repurchasing bad mortgages, could lose up to $150 million as it deals with the cost of mortgage-servicing problems.

HUD is increasing its enforcement efforts to recoup millions of dollars in losses on improperly underwritten FHA-insured loans, holding lenders accountable for their actions, Housing secretary Shaun Donovan told a Senate panel Tuesday morning.

Boston-based Highfields Capital Management, which owns a 7.7% stake in CoreLogic, accused CoreLogic's board of directors' "desire to maintain control rather than doing what is in the best interest of shareholders."

Mortgage industry compliance and risk management are expected to become “quite substantial in the next five years,” according to one of the co-founders of Digital Risk, a company planning to add 1,000 full-time professional positions in this area during 2012 alone.

A proposed $8.5 billion Countrywide RMBS settlement has returned to New York state court in a move that has been largely expected to speed its approval, with Fitch Ratings now estimating it could move ahead in mid-2012.

Some CMBS special servicers are charging undisclosed fees to borrowers seeking modifications, according to Fitch. And there is concern that this may be the beginning of a trend.

The answer to that question is: tight credit with unemployment being the runner-up. Although some naysayers believe the job picture hasn't improved much, there are many realists who think otherwise. But one thing we can agree upon is this: employment is not booming.

Citigroup has finally unloaded the rest of its minority stake in the Mumbai-based Housing Development Finance Corp. as part of its capital planning efforts, but will continue other business relationships with the company including investment and cash management services.

Weeks after state and federal officials said they would ensure borrowers still had the right to sue servicers even under the $25 billion mortgage settlement, the Office of the Comptroller of the Currency appears ready to follow suit.

FACTS: On Feb. 13, Patricia Ann King of Bakersfield, pleaded guilty to aiding and assisting the preparation of a false tax document and to three counts of mail fraud for her role in a mortgage fraud scheme.

Fannie Mae late Friday finally had something to say about Bank of America's announcement that it would no longer sell new purchase money loans to the GSE: it hopes to resolve the buyback disputes between the two parties.

Flagstar Bancorp, the nation's ninth largest residential lender, late this week agreed to pay up to $133 million to settle claims regarding unspecified underwriting practices associated with loans insured by the Federal Housing Administration.

After 12 installments last year, Interthinx will continue to record its monthly audio podcast called "Direct from DC" that discusses legislative and regulatory developments that impacts the mortgage servicing and lending industry.

Maryland is developing a pilot program to take its mandatory foreclosure mediation process paperless.

Bank of America Thursday afternoon confirmed that it will no longer sell any new purchase money mortgages to Fannie Mae -- though it will remain a HARP lender.

Two Marlboro, N.J. residents - an attorney and an investment broker - this week pleaded guilty to participating in a scheme to steal more than $2.6 million by filing fraudulent mortgage applications.

Woodward Asset Capital has made technological advancements to their two software solutions enabling small banks to have the capability to access these tools to monitor fraudulent activities in the distressed sales marketplace.

An upcoming legal decision related to whether a proposed $8.5 billion Countrywide RMBS settlement returns to New York state court could affect the speed at which a deal moves forward — or whether it happens at all, according to a new report from Barclays.

Fitch is concerned that some CMBS special servicers are charging undisclosed fees to borrowers seeking modifications and fears the practice may be the beginning of a trend.