State regulators

The city of Owensboro, Ky., has plowed through a complicated process that led to a mass foreclosure action against 21 problem properties, most of them residential. Now, the city has its sights on another set of similar problem properties for foreclosure.

Local officials could have a new weapon, courtesy of state government, in a drive to thin out empty residences and buildings in St. Joseph, Mo.

A recently launched program in New York state is helping distressed borrowers avoid foreclosure.

Facing the prospect of losing its license in California, Ocwen would be wise to settle its probe by state regulators in a timely manner, observers said. If it doesn't, the mortgage servicer could lose significant revenue and might even face a cash crunch.

A federal agency's plan to tighten membership rules for Federal Home Loan banks would hurt community banks and credit unions — and could endanger the financial system, according to a broad array of stakeholders, including state regulators, lawmakers and institutions.

Bank servicers have a compliance dilemma: they need to quickly shed mortgage-servicing rights ahead of Basel III at a time when regulators are keeping a close watch on the manner in which transfers are handled.

Appraisers are often the only party involved in a real estate transaction that has no "skin in the game," unlike mortgage originators and real estate agents.

Georgia's Department of Banking and Finance has finalized a cease-and-desist order against Community Legal Center.

Investor confidence in Ocwen Financial was clearly shaken Monday after New York state regulators forced the firm's founder out as part of a $150 million settlement.

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.

The State Regulatory Registry, which runs the Nationwide Multistate Licensing System, says that mortgage loan originator and company renewals for 2015 are off to a strong start.

Having fought many battles with Congress over curbs to bond and other programs that affect affordable housing, John Murphy expects the challenges will continue as he retires from the National Association of Local Housing Finance Agencies after 30 years as its executive director.

Make certain your loan officers do not go off on their own and cause your company to be disciplined by regulators.

Embattled nonbank servicer Ocwen took a $100 million charge for a potential settlement of foreclosure violations and posted a third-quarter loss, but warned the final cost to settle allegations that it backdated foreclosure notices could be higher.

Bank of America Corp. Chief Executive Officer Brian T. Moynihan, who was named chairman this month, said legal costs stemming from defective mortgages are largely behind it.

McGraw Hill Financial said it's negotiating a possible settlement of government investigations into how its S&P unit graded commercial mortgage-backed securities and recorded a $60 million charge to cover the costs.