Enforcement

Citigroup executives involved in the issuance of residential mortgage-backed securities at the center of the 2008 financial crisis will not be facing criminal charges for selling toxic bonds, U.S. authorities have determined.

A federal judge has allowed to proceed a lawsuit in which a Belgian investor blames Bank of New York Mellon for about $1.1 billion of losses related to its role as trustee for residential mortgage securities.

The House Financial Services Committee approved a bill this week that would increase the mobility of mortgage originators who take a new job across state lines or move from a federally regulated bank to a nonbank.

Oversight of the four largest mortgage servicers' compliance with the national mortgage settlement is officially over, the watchdog overseeing the process said Thursday.

Bankers are still grappling with vendor software problems, longer processing times and delays in mortgage closings as a result of new disclosures that went into effect four months ago, according to a new survey by the American Bankers Association.

The mortgage servicer said it has received a letter from the Securities and Exchange Commission regarding its fees for handling distressed loans and properties.

First Federal Bank of Kansas City has agreed to a $2.8 million settlement with the Department of Housing and Urban Development to resolve allegations of redlining in African-American neighborhoods.

The U.S. Justice Department will decide in the next few months whether it will sue Moody's Corp. for allegedly inflating ratings on mortgage bonds at the heart of the 2008 financial meltdown.

Law enforcement authorities raided the headquarters of United Mortgage Trust in Grapevine, Texas, on Feb. 18, seeking documents related to the company's management.

The Consumer Financial Protection Bureau acknowledges that gearing up for the Truth in Lending Act/Real Estate Settlement Procedures Act integrated disclosures has been tough, and it promises to consider that fact in exams.