Compliance

Despite fraud remaining flat for the last five quarters nationwide, CoreLogic has made projections that increases will occur over the next two quarters.

While a loan broker or loan officer is prohibited from “steering” a consumer to a lender offering less favorable terms in order to increase the broker’s or loan officer’s compensation, the loan broker or loan officer is not prohibited from “steering” a consumer to the same type of lender if the lender is offering more favorable terms! (12 CFR §226.36(e))

A federal judge Friday sentenced former Colonial Bank warehouse chief Catherine Kissick to eight years in prison after she pleaded guilty to helping Taylor Bean & Whitaker executives pull off a $2.9 billion fraud scheme that brought down both the bank and the nonbank lender.

The Federal Deposit Insurance Corp. is preparing $2 billion worth of structured asset sales that will hit the market shortly, a top agency official said Thursday.

Technology vendors are responding to the new single point of contact requirement for residential servicers with Web-based portals that give borrowers insight into the loss mitigation process.

A New York state appeals court overturned a ruling in favor of the Mortgage Electronic Registration Systems, finding Bank of New York did not have standing to initiate a foreclosure.

The Georgia Department of Banking and Finance this week filed a cease and desist order against DBD Results LLC, Scottsdale Ariz., prohibiting the firm from conducting business within the state.

RealEC has rolled out a service that offers lenders the ability to push quality control from the closing table earlier in the process, with loan-level reviews during the origination process.

A top regional official from the investigative arm of HUD said Bank of America "significantly hindered" a federal investigation of the megaservicer’s foreclosure practices, according to a report from Dow Jones.

Three firms have filed a class-action lawsuit representing California homeowners who have allegedly been victimized by a network of scam artists taking advantage of individuals facing foreclosure.

The Massachusetts Department of Banking told a credit union-owned mortgage lender in a new legal opinion that its mortgage officers must obtain state licenses under the SAFE Act.

Two top executives at the now defunct Taylor, Bean & Whitaker were sentenced late last week for their involvement in a $2.9 billion fraud scheme that brought down the top ranked nonbank lender, and its chief warehouse backer, Colonial Bank.

The Department of Justice has more than a dozen open investigations into violations of the nation's fair lending laws -- probes that could lead to charges against mortgage firms if investigators find a pattern of abuse, according to a key department official.

On May 28 PHOENIX RESIDENT PAIGE KINNEY, AKA JAIMELEE LAWLER, 42, pleaded guilty in two separate cases in federal district court. In one case, Kinney admitted to her leadership role in a $40 million mortgage fraud involving Countrywide Home Loans, and in the second case, she admitted to committing bankruptcy fraud, bank fraud, and mail fraud.

The former president of Home Free Realty Inc was sentenced yesterday to serve 51 months in prison for committing two separate real estate fraud schemes.

A Minneapolis mortgage broker was convicted last week of orchestrating a loan fraud that cost local lenders, including Anoka Hennepin Credit Union, losses of more than $4.6 million.

Two federal lawsuits against appraisal management companies could become weapons for mortgage-backed securities investors seeking to make lenders buy back soured loans.

The Georgia Department of Banking and Finance early this week slapped Kondaur Capital, Orange, Calif., with a final consent order, prohibiting it from lending or buying any loans in the state.

The Homeownership Preservation Foundation has found that nearly half the victims of mortgage loan modification scams were either of African-American, Hispanic or Asian background.

Interthinx revealed in its latest Mortgage Fraud Risk Report that occupancy and employment fraud continue to be a major problem nationwide.