The Obama administration has laid out a plan to expedite loan modifications under the Home Affordable Modification Program, starting with a key meeting with participating mortgage servicers to discuss how to get more loans into trial modifications. The July 28 meeting between senior Treasury and Department of Housing and Urban Development officials and the 27 mortgage servicers...
Read More
The Department of Housing and Urban Development and the Treasury Department are working with federal banking regulators to ensure that current regulatory policy does not encourage financial institutions to delay loss recognition by allowing them to carry second liens at inflated valuations. Also, HUD hopes to draw on the expertise of federal banking agencies in crafting an...
Read More
Mortgage brokers and other non-bank loan originators could become subject to federal anti-money laundering and suspicious activity reporting requirements as part of the Treasury Department’s war against mortgage fraud. The Financial Crimes Enforcement Network, Treasury’s watchdog for financial crimes, including terrorist financing, money laundering and fraud, is seeking comment on a plan...
Read More
Amendments to a New Jersey law allowing certain distressed borrowers to obtain a six-month forbearance after a foreclosure action is filed have further complicated loan modification efforts, according to legal experts. Among other changes, A.B. 3821, which Democrat Gov. Jon Corzine signed into law July 2, now provides that a borrower is not required to pay anything during that forbearance...
Read More
Incidents such as the one that recently prompted California Attorney General Edmund Brown to sue foreclosure relief scammers is driving up industry support for a proposed federal rule to curb mortgage relief assistance scams. On July 6, Brown filed a lawsuit against a foreclosure consultant and an attorney – Paul Noe Jr. and Mitchell Roth – who allegedly duped 2,000 homeowners into paying...
Read More
Mortgage servicers do not “originate” loans when they engage in loan modifications and, thus, should be excluded from the registration requirements of the Safe and Fair Enforcement for Mortgage Licensing Act of 2008, according to industry groups. Mortgage participants expressed their concerns in comments to a proposed rule published by federal financial institutions regulators June 9 to...
Read More
A subsidiary of credit report provider Equifax, Inc. has agreed to pay $350,000 in civil fines and submit to compliance monitoring and mandatory recordkeeping as part of a settlement with the Federal Trade Commission for allegedly violating federal disclosure requirements. Without admitting to or denying any wrongdoing, TALX Corp. agreed not to engage in...
Read More
Financial services industry groups called for a cautious approach while consumer advocates rallied behind legislation to create a powerful federal consumer protection agency. During recent hearings on regulatory restructuring, the two opposing factions presented their cases before Congress on the need for a Consumer Financial Protection Agency with broad authority over...
Read More
Alabama. Starting Oct. 1, the State Banking Department will use the Nationwide Mortgage Licensing System and require all... Alaska. The Division of Banking and Securities will begin accepting applications for licensure through the... Arizona. An Arizona superior court has appointed Superintendent of Financial Institutions Felecia Rotellini...
Read More
Bogus MHAP Affiliations: The FTC continued to crack down on foreclosure prevention scams by ordering several defendants to stop making deceptive claims that they are affiliated with... Joint FTC/California AG Operations: The Federal Trade Commission and California Attorney General Edmund Brown are in a joint operation to crack down on fraudulent mortgage relief...
Read More
House Financial Services Committee Chairman Barney Frank, D-MA, and Rep. Maxine Waters, D-CA, plan to... The American Securitization Forum last week issued for comment its new RMBS Model Representations... On July 15, David Stevens was sworn in as commissioner of the Federal Housing Administration. Stevens was...
Read More