Compliance

A Northern District of California federal jury convicted Doris Anyanwu and Hyacinth Udeh of conspiracy to commit wire fraud and using false claims of U.S. citizenship.

On March 9, 2011 a 14-count mortgage fraud indictment was unsealed accusing JOAN C. TEETERS AND JONATHAN MARC NATTIER, RESIDENTS OF FOLEY, ALA., with conspiracy to commit wire fraud, mail fraud and bank fraud, and they both face a maximum sentence of 20 years as to that count. Teeters was charged in all 14 counts of the indictment.

The Securities and Exchange Commission late Wednesday filed civil charges against a former operations chief at the now defunct Colonial Bank, accusing her of playing a key role in $1.5 billion warehouse lending related scam.

Former Freddie Mac chairman and CEO Richard Syron recently received a 'Wells Notice' from the Securities and Exchange Commission, which means the agency is considering filing civil charges against him related to his management of company.

Meredian Financial Corp., a Costa Mesa, Calif.-based mortgage lender and broker, is being sued by Minnesota attorney general Lori Swanson for charging state homeowners thousands of dollars to refinance their mortgages without actually providing consumers the promised services.

The online hacker group Anonymous has released internal emails from a former employee of a former Bank of America Corp. unit, allegedly showing how the unit tried to hide residential foreclosure information.

Far more than any trader's profane e-mails, due diligence reports from the securitization boom could worsen the financial industry's litigation headaches — and conceivably expose some firms and individuals to criminal charges.

Former Fannie Mae CEO Daniel Mudd, who oversaw the GSE's huge expansion into nonprime investing and securitization, late last week received a "Wells Notice" from the Securities and Exchange Commission, indicating that he may face civil charges for allegedly misleading investors about the company's financial condition.

As part of national consumer protection week, the Lawyers’ Committee for Civil Rights Under Law and pro-bono counsel Davis Polk & Wardwell LLP filed a lawsuit on March 9 against for-profit loan modification companies who targeted vulnerable New York State homeowners.

AB 406- This bill would PROHIBIT BALLOON PAYMENTS from being included in the terms of an adjustable rate loan, as defined, for real property containing one to four residential units secured by a mortgage or deed of trust on real property.

The operational risk that arises from a host of smaller details in today's dynamic loan origination market is outweighing fraud concerns when it comes to identifying potential buybacks, according to one executive.

It used to take several years for the Federal Housing Administration to track down its worst lenders and put a stop to their shoddy lending practices. Not any more.

Ranking Republican members on the House Financial Services Committee are none-too-happy about the proposed AG settlement with residential servicers, but what they really dislike is the concept of principal writedowns on troubled mortgages.

Three surviving spouses of reverse mortgage borrowers have sued HUD, alleging that what HUD characterized in 2008 as a clarification of its policy constituted a change from long-established federal rules that should have protected them from having to repay lost equity in order to stay in their homes.

Radius Capital Corp. and its president, Robert DiGiorgio, have been charged by the Securities and Exchange Commission with securities fraud for allegedly making false and misleading statements related to the company’s issuance of mortgage-backed securities guaranteed by Ginnie Mae.

Mortgage fraudster Michael McGrath, who siphoned off $140 million of credit union funds through his company, U.S. Mortgage Corp. and its CU National Mortgage affiliate, will serve at least 12 years of a 14-year prison term meted out by a federal judge two weeks ago, according to prosecutors.

The Department of Housing and Urban Development's inspector general found "systemic problems" in lenders' compliance with underwriting requirements for Federal Housing Administration loans.

Catherine Kissick, a well known figure in warehouse lending circles, late Friday pleaded guilty to criminal charges tied to the collapse of Taylor, Bean & Whitaker, a large FHA lender based in Ocala, Fla.

Connecticut attorney Richard Novak pleaded guilty last week in U.S. District Court to making a false statement on a federal mortgage loan document.

As scammers continue to prey on vulnerable, financially stressed homeowners, the California Department of Real Estate is warning consumers to be wary of promises for loan modification and mortgage relief.