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Compliance

HAMP Hacker Pleads Guilty to Misusing Fannie Mae Site

Black Gavel Pic/Credit: Brand X Pictures

The Office of the Special Inspector General for the Troubled Asset Relief Program (SIGTARP) has announced that Sathish Kumar Chandhun Rajendran of Sterling, Va., has pled guilty to engaging in unauthorized access to government servers that hosted a Fannie Mae Web site used to support federal mortgage loan modification programs, including the Home Affordable Modification Program (HAMP). The plea was entered before U.S. District Judge T.S. Ellis III, in federal court in Alexandria, Va.Click to continue

New York Awarded $182 Million as Part of Citigroup Payout

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New York State Attorney General Eric T. Schneiderman joined members of a state and federal working group he co-chairs to announce that $182 million—$92 million in cash, and at least $90 in consumer relief—would be allocated to New York State as part of a $7 billion settlement with Citigroup. As part of the settlement, Citigroup acknowledged it made serious misrepresentations to the public—including the investing public—arising out of the packaging, marketing, sale and issuance of residential mortgage-backed securities (RMBS) by Citigroup.Click to continue

Identity Theft Prevention Program: Definitions

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Question: We are a mortgage lender and have an Identity Theft Prevention Program, but we are still not sure what is considered a “covered account,” or an “account,” or a "Red Flag," or even a “customer.” What are the definitions for these terms?Click to continue

FHFA Seeks Input on Potential MI Changes for GSEs

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The Federal Housing Finance Agency (FHFA) is seeking input on draft requirements that would apply to private mortgage insurance (MI) companies that insure mortgage loans owned or guaranteed by Fannie Mae and Freddie Mac. These requirements would apply only to private mortgage insurers that are currently approved to do business with Fannie Mae or Freddie Mac and those seeking approval in the future.  Click to continue

Bipartisan Bill Introduced to Advance Wind Down of GSEs

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Reps. John K. Delaney (D-MD), John Carney (D-DE), and Jim Himes (D-CT) have introduced innovative housing finance reform legislation, the Partnership to Strengthen Homeownership Act (HR 5055). This legislation preserves the 30-year fixed rate mortgage and protects American taxpayers by using private sector pricing to reduce the risk of future bailouts.Click to continue

CFPB Offers Clarification on Heirs Losing Homes

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The Consumer Financial Protection Bureau (CFPB) is issuing an interpretive rule to clarify that when a borrower dies, the name of the borrower’s heir generally may be added to the mortgage without triggering the Bureau’s Ability-to-Repay (ATR) rule. This clarification will help surviving family members who acquire title to a property to take over their loved one’s mortgage, and to be considered for a loan workout, if necessary, to keep their home.Click to continue

The Insured Closing Letter is Obsolete

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A recent panel on fraud issues I attended included a healthy debate about the extent to which a lender can rely on the insured closing letter as a means to offset risk at the closing table.Click to continue

Will SCOTUS Take Up Spokeo v. Robins and Address the No Harm, No Foul Claim?

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Several interested parties, including the National Consumer Reporting Association (NCRA) have filed amicus briefs in the U.S. Supreme Court urging it to hear the case of Spokeo v. Robins and reverse the Ninth Circuit’s conclusion that “the violation of a statutory right” in itself is “a sufficient injury in fact to confer standing” under Article III [Robins v.Click to continue

SunTrust Reaches Agreement With Multi-Agency Force on HAMP Issues

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The Office of the Special Inspector General for the Troubled Asset Relief Program (SIGTARP), the U.S. Department of Justice, the U.S. Attorney’s Office for the Western District of Virginia, the Federal Housing Finance Agency Office of Inspector General, and the U.S. Postal Inspection Service have announced that a non-prosecution agreement with SunTrust Mortgage Inc. has been reached that resolves a criminal investigation of SunTrust’s administration of the Home Affordable Modification Program (HAMP).Click to continue