Law and regulation

Curt Culver has got a lot to keep him busy after he steps down as Mortgage Guaranty Insurance Corp.'s CEO, including serving on the board of his family's eponymous restaurant chain.

Ocwen Financial has agreed to pay $150 million to New York regulators to settle allegations that it fudged foreclosure documents and said Monday that its founder and, executive chairman, William Erbey is stepping down after 30 years with the Atlanta company.

Federal bank regulators increased the asset-size thresholds for the definition of a "small bank" and "intermediate small bank" for certain bank exams on Friday.

Federal bank regulators increased the asset-size thresholds for the definition of a "small bank" and "intermediate small bank" for certain bank exams on Friday.

The Federal Housing Administration is facing severe challenges next year as some pressure it to lower premiums to deal with new competition from the government-sponsored enterprises, even while its insurance fund remains weak and it faces added scrutiny from GOP lawmakers.

Sen. Barbara Boxer, D-Calif., along with 17 other Democratic senators, is urging Department of Housing and Urban Development officials to consider a reduction in FHA mortgage insurance premiums.

The government conservatorship of Fannie Mae and Freddie Mac was never meant to authorize lasting control over the housing sector, according to one of the people who advised Congress on the Housing and Economic Recovery Act.

The Senate approved a bill late Tuesday that would retroactively extend over 50 expiring tax provisions for one years, including one that shields distressed homeowners from paying taxes on any mortgage debt forgiven in a short sale.

More than two dozen Senate lawmakers signed a letter this week that urges the Federal Housing Finance Agency to drop its proposal to tighten Federal Home Loan Bank membership rules.

WASHINGTON — More than two dozen Senate lawmakers signed a letter this week that urges the Federal Housing Finance Agency to drop its proposal to tighten Federal Home Loan Bank membership rules.

Ocwen Financial came under fire from Joseph A. Smith, the monitor of the national mortgage settlement, after concerns of conflicts of interest were raised by an unnamed whistleblower.

In a speech last May, Edward DeMarco declared these truths to be self-evident: "Restoring Fannie Mae and Freddie Mac is not the solution. They failed and their business model failed. Going backwards to an obviously failed model cannot be dressed up with some promise of higher capital or explicit rather than implicit guarantees."

Lenders concerned about maintaining vendor oversight compliance may require title insurance and settlement firms to adopt the American Land Title Association's quality standards, even though the industry guidelines are only voluntary.

Treasury Secretary Jacob Lew's decision to give more help to homeowners who have already gotten mortgage assistance has sparked opposition from Republicans aiming to end President Obama's foreclosure prevention program.

HUD officials had taken a neutral position on whether FHA financing would be available for loans that were seized by cities and written down to their current appraised value.

There's little point to Fannie and Freddie's large profits if that money is remitted to the Treasury rather than making the GSEs more financially stable.

The spending package unveiled Tuesday would end Department of Veterans Affairs guarantees on larger loans starting Jan. 1.

Fannie said it will immediately begin accepting applications for fixed-rate 97% loan-to-value financing of borrowers with FICO scores as low as 620. Freddie, meanwhile, took a more cautious approach, delaying the start of the program, requiring credit counseling, and in some cases only allowing FICO scores as low as 660.

Fannie Mae and Freddie Mac have set terms for letting borrowers put down as little as 3% of a home's cost to get mortgages, a step criticized by Republican lawmakers as a return to risky lending.

The Federal Housing Administration said no county in the nation will experience a decrease from this year's loan limits.