Compliance

A San Diego judge recently ruled that there is enough evidence for a former local police officer and his wife to stand trial on felony charges in connection with the trashing of their foreclosed French Valley home, which was financed by San Diego Metropolitan Credit Union.

Almost three years to the day of seizing IndyMac Bank, the Federal Deposit Insurance Corp. launched a civil action against its former CEO, saying he "negligently" allowed the thrift to keep making risky loans despite signs of market stress.

CUMIS Insurance Society is asking a federal bankruptcy court to block an effort by a former senior loan officer of Staley CU, who filed for bankruptcy while she was on her way to prison for a mortgage fraud, to discharge $1.6 million in restitution she owes the credit union insurer.

On June 20, Brett Matheson pleaded guilty in federal court to conspiracy to commit wire fraud in a $50 million mortgage fraud scheme based in Phoenix. Two others have also entered guilty pleas and are awaiting sentencing.

Taylor, Bean & Whitaker's former chairman, Lee Farkas, was sentenced last week to 30 years in prison for leading a $2.9 billion fraud scheme that brought down the top-ranked nonbank lender, and its chief warehouse backer, Colonial Bank.

ID Analytics, a consumer risk management firm, found that 16% of the nation is engaging in improper identity.

A year after "Operation Stolen Dreams" concluded tracking mortgage fraud nationwide, more than $3 billion in estimated losses resulted from this search, according to the Federal Bureau of Investigation.

The precedent set by the recent Bank of America MBS settlement raises concerns for smaller banks that might not be able to absorb large settlements as well.

Taylor, Bean & Whitaker's former chairman and CEO, Lee Farkas, was sentenced today to 30 years in prison for leading a $2.9 billion fraud scheme that brought down the top ranked nonbank lender, and its chief warehouse backer, Colonial Bank.

Ally Financial Inc. indicated in a Wednesday SEC filing that it has received subpoenas from two regulatory entities in June that included requests for documentation related to certain mortgage activities.

Bank of America Corp.'s proposed settlement of mortgage-backed securities claims against its Countrywide unit would force private-label investors in 530 Countrywide trusts to accept the bank's $8.5 billion offer, B of A officials said Wednesday.

Bank of America's pending settlement related to hundreds of billions of dollars worth of Countrywide-issued first-lien RMBS released Wednesday would include not only an $8.5 billion cash payment to trusts involved but also about $400 million of servicing changes and improvements, according to an investor law firm involved.

Suspicious activity report filings involving mortgage fraud rose by 31% in the first quarter, largely as a result of the large number of repurchase demands by investors.

A Dallas homebuilder pleaded guilty last week in the U.S. District Court for the Eastern District of Texas to a mortgage fraud scheme against homebuyers.

Freddie Mac has entered into a proposed settlement with creditors of the Taylor, Bean & Whitaker Mortgage Corp. bankruptcy that will allow the GSE to gain control of TBW-related mortgage servicing rights and $54 million in loan receipts in TBW deposits.

In the first two of what promises to be several legal actions seeking compensation for the corporate credit union crisis, the National Credit Union Administration sued two of the biggest Wall Street banks last week seeking to recover losses from the now-toxic mortgage-backed securities they sold to four of the five failed corporates.

Short sale fraud is estimated to rise by 25% in this year of 2011. Unnecessary losses related to risky short sales are approximately $375 million annually according to CoreLogic.

Deutsche Bank and a New Jersey homeowner have reached a compromise to settle a foreclosure action that has been taking place for the last two years.

A court-appointed judicial hearing officer who previously had said e-mails sent between New York Insurance Department officials showed bias regarding the restructuring of bond insurer MBIA Insurance Corp. last week reversed his decision.

A new avenue of attack may be opening up for investors seeking to force big banks to buy back billions of dollars in mortgages: drag the trustees into the fight.