Despite widespread industry and Congressional opposition, the Department of Housing and Urban Development last week submitted for executive review a controversial draft final rule reforming the mortgage settlement process. The rule, which would streamline Real Estate Settlement Procedures Act regulations, was sent to the Office of Management and Budget for clearance Aug. 21, following an...
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California’s revision to its foreclosure law requires lenders to expend more effort to locate and notify borrowers of the possibility of foreclosure and of the options that are available to avoid losing their homes. Industry attorneys, however, are warning that the legislative revisions could result in longer time frames for nonjudicial foreclosures, increased lender costs, and...
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A tough assignee liability provision in New York’s new subprime lending reform law has prompted Fannie Mae and Freddie Mac to declare “subprime home loans” originated in the state on or after Sept. 1 as unfit for purchase. The legal provision states that a borrower in default for more than 60 days or in foreclosure may use a violation of any of the prohibited practices under the new...
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The Federal Deposit Insurance Corp. is using distressed IndyMac Federal Bank as a model for a newly developed loan modification strategy it hopes the mortgage industry would adopt to help at-risk borrowers avoid foreclosure and maximize recovery for mortgage investors. The new aggressive program is aimed at troubled Alt A loans that the agency assumed as receiver of the former IndyMac...
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Compliance experts are urging subprime and Alt A lenders to be prepared for potential unfair-and-deceptive practices lawsuits, a strategy that seems to have gained favor lately among state attorneys general in addressing high foreclosure rates. Much of the actual subprime and Alt A lending practices are now prohibited by regulation, and lenders have practically...
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Interest rates and fees that may be imposed by an operating subsidiary of a national bank should be based on the usury laws of the parent bank’s home state, even though the operating subsidiary has no offices in that home state, according to the Office of the Comptroller of the Currency. In a recent interpretive letter, the OCC concluded that the bank’s operating subsidiary should be able...
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The National Association of Realtors waited 13 months for the Department of Housing and Urban Development to respond to inquiries related to compensation under the Real Estate Settlement Procedures Act. What the group finally got on Aug. 6 was a reiteration of previous guidance. “It was nice to finally get it and it is better late than never,” an association official said...
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Florida. On Aug. 12, the Sunshine State issued an emergency rule to bar people with criminal records from obtaining licenses... Kentucky. Charles Vice was named commissioner of the state Department of Financial Institutions. His appointment became... Washington. The state Department of Financial Institutions announced consent orders against two firms that were...
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Office of the Comptroller of the Currency: Banks’ Public Welfare Investments. The OCC has issued a banking bulletin on an interim final rule to... Federal Trade Commission: Telemarketing Sales Rule Amendments. On Aug. 19, the FTC announced two amendments to... Federal Reserve Board: Senior Loan Officer Survey. A recent Fed survey of senior loan officers found that...
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Fannie Mae has a new network of attorneys to handle all its foreclosure and... The House Financial Services Committee will have a hearing on... The Office of the Comptroller of the Currency will host a... The American Enterprise Institute will have its fifth annual conference... Compliance Technologies, the Mortgage Bankers Association, and...
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