Politico, Aug. 2, 2018–Lorraine Woellert, Katy O’DonnellLaura Wertheimer, inspector general for the Federal Housing Finance Agency, is under investigation for misconduct after complaints that she bowed to pressure from the agency’s director, Mel Watt, to weaken her office’s oversight.
Category: Top National News
Wells Fargo Faces Tax Credit Probes, New Problems with Mortgage Borrowers
Reuters, Aug. 3, 2018–Lauren Tara LaCapra, Pete SchroederThe $8 million accrual is intended for roughly 625 borrowers who should have qualified for a loan modification under a program the Treasury Department set up in 2009 to help Americans who were struggling to make mortgage payments. An error in Wells Fargo’s underwriting tool improperly excluded those borrowers, 400 of whom eventually had their homes foreclosed upon, the bank said.
HSBC to Pay $765M to Settle U.S. Toxic Mortgage Probe
Sky News, Aug. 6, 2018–Abid AliHSBC has agreed to pay $765 mmillion to the U.S. Department of Justice to settle a probe into the sale of mortgage-backed securities in the run-up to the financial crisis.
Veteran Against Veteran: A New Battle on Capitol Hill Pits Agent Orange Funding Against Low-Cost Mortgages
MarketWatch, Aug. 2, 2018–Andrea RiquierThe Mortgage Bankers Association put it this way in their own letter: “we firmly believe that mortgage borrowing costs should not be increased to pay for non-housing-related expenditures. The loan fees charged to veterans should reflect the credit risk associated with the VA guaranty, and any fee increases that are unrelated to this risk unnecessarily raise the cost of mortgage credit for veterans.”
Fannie Mae Reports Income of $4.5 Billion in Q2
HousingWire, Aug. 2, 2018–Alcynna LloydFannie Mae reported income of $4.5 billion in the second quarter, primarily driven by an increase in credit-related income due to the redesignation of loans from held-for-investment to held-for-sale.
Relief from HMDA Requirements May Go Further than Banks Realize
National Mortgage News, Aug. 2, 2018–Rachel Witkowski (subscription)Federal reporting requirements for mortgage data have been a moving target in recent years. Just as one set of policymakers expands reporting rules, another eases them. But bankers are starting to see more signs of clarity.
Former Lehman Unit Fined for Fraud
Denver Post, Aug. 3, 2018–Donovan HendersonAurora Loan Services LLC will pay a $41 million fine for what the U.S. Attorney says were fraudulent loans from 2004 to 2008 under an agreement with the government announced Thursday.
Wells Fargo Reaches $2 Bil Subprime RMBS Settlement
Mortgage Daily, Aug. 1, 2018More than two years after revealing a government investigation into how it handled sales of subprime residential mortgage-backed securities, Wells Fargo & Co. has agreed to a more than $2 billion settlement.
Wells Fargo’s $2B Settlement May Mark End of Crisis-Era RMBS Woes
National Mortgage News, Aug. 1, 2018–Kristin Broughton (subscription)The beleaguered bank’s $2.09 billion settlement stemmed from crisis-era mortgage problems, rather than revelations of new issues at Wells that could have sparked a regulatory backlash or probe that might cause headaches for other banks.
Panel Vote on CFPB Nominee Delayed as Senate Plans Recess
American Banker, Aug. 1, 2018–Neil Haggerty (subscription)The Senate Banking Committee is postponing its vote on Kathy Kraninger’s nomination to be the director of the Consumer Financial Protection Bureau as the Senate moved to adjourn for a short recess on Wednesday.