A proposed federal consumer protection agency may wind up being part of a new super-regulatory agency under a compromise proposed by Sen. Richard Shelby, R-AL, ranking minority member on the Senate Committee on Banking, Housing and Urban Affairs. The proposal is reportedly under discussion by Senate banking committee staff as part of emerging legislation that would put the kibosh on lending... Read More

Lenders doing business with the Federal Housing Administration will find their performance and compliance with FHA rules under closer scrutiny in 2010. Last week, FHA officials provided more details on planned changes they previewed in December to increase enforcement and make FHA lenders more accountable for the loans they originate. The policy changes aim to improve and... Read More

The Department of Justice is rolling out the big guns this year in its bid to investigate and prosecute all types of fraud and discriminatory business practices that may impede the nation’s economic recovery. In testimonies and public statements over the last couple of weeks, top DOJ officials have unveiled what amounts to a war plan against mortgage fraud, securities fraud, anti-recovery and... Read More

Federal housing regulators are ramping up surveillance of mortgage companies’ claims rates to protect the FHA single-family mortgage insurance fund from bad underwriting and potential fraud. Fifteen mortgage companies are being investigated by the Department of Housing and Urban Development’s Office of the Inspector General for having significant claims against the FHA insurance fund... Read More

There will be limited loss mitigation options for borrowers facing imminent default under recent guidance issued by the Department of Housing and Urban Development. Effective Jan. 22, servicers of FHA-insured loans may use forbearance and the FHA-Home Affordable Modification Program in helping borrowers in imminent default avoid foreclosure. The guidance in Mortgagee... Read More

Financial institutions can still achieve strong ratings under the Community Reinvestment Act despite the economic downturn and reduced loan volumes, including those considered as CRA loans. It is not just simply adding up the numbers but finding a strategy to identify and meet a community’s credit and community development needs and providing loan products... [Includes two charts] Read More

The Mortgage Bankers Association asked the Federal Reserve Board last week to clarify a new final rule that is raising compliance questions among issuers and servicers of Ginnie Mae securities. The trade association said issuers and servicers are confused about the rule’s definition of “covered” entities, which appears to exclude Ginnie Mae. In a recent letter... Read More

Oregon. Attorney General John Kroger announced a settlement which barred a California law firm from doing any more loan modifications in the state. The settlement also required the USMAC Law Group of Aliso Viejo, CA, to return $6,857 to two Oregon homeowners. Nine other homeowners who paid upfront fees to the law firm may also be eligible for refunds, according... Read More

FHA Upfront Premiums Increase. Beginning April 5, 2010, the FHA will collect an upfront fee of... HUD, AK Regulator Settle RESPA Claims with Title Firm. The Alyeska Title Guaranty Agency has... H4H Program Changes Implemented. HUD has adopted an interim final rule which implements... HUD Mortgagee Review Board Issues Action Report. A total of 222 HUD-approved lenders... Read More

The Fair Mortgage Collaborative, a nonprofit group that certifies lenders that meet its “fair and safe” standards, has unveiled a new Web tool and search engine that would ensure... The National Association of Mortgage Brokers will have its Legislative & Regulatory Conference, Feb. 21-24, at the... Read More