Risk management

The mortgage industry can better manage disparate regulatory requirements with a comprehensive approach that streamlines compliance.

Bank of America and nine other banks have agreed to pay about $63 million to settle claims they misled the state of Virginia into buying faulty residential mortgage-backed securities.

The Federal Housing Finance Agency may face legislation or a lawsuit in the near future as it tries to force captive insurance companies to exit the Federal Home Loan Bank System.

Overlapping missions and jurisdictions are fueling competition between the Consumer Financial Protection Bureau and the Federal Trade Commission, according to former officials at both agencies.

In one corner are groups like the Community Home Lenders Association and the major credit union groups, which are hoping the administration will further cut premiums after a reduction a year ago. On the other are MBA and ICBA, which argue a cut now would be too soon.

Agency and government loan programs will be a little different in the next 12 months. There also will be new rules for private-label securitizations, along with new products available to investors. Here is an overview.

Home Equity Conversion Mortgage servicers have received an additional three months to explore loss mitigation options when borrowers or their spouses have difficulty paying their property taxes and insurance.

Spreads widened on Freddie Mac's latest offering of Structured Agency Credit Risk securities as investors demanded additional compensation for taking on the credit risk of mortgages insured by the company.

Independent mortgage lenders are expecting a wave of consolidation prompted by excessive compliance costs, a tepid housing recovery and the need for more capital to grow their businesses. Roughly 20% to 25% of independent companies could be eliminated or change hands in less than two years.

Recent Consumer Financial Protection Bureau enforcement actions against lead generation companies emphasize the breadth of lenders' responsibility for the third parties they expose borrower clients to.