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Securities and Exchange Commission (SEC)

Volcker Rule FAQs Laid Out by Several Regulatory Agencies

Money Cut/Credit: Creatas

Three federal financial institution regulatory agencies have jointly issued a FAQ (Frequently Asked Questions) document to provide clarification and guidance to banking entities regarding investments in “Covered Funds” and whether collateralized debt obligations backed by trust preferred securities (TruPS CDOs) could be determined to be Covered Funds under the final rules to implement section 619 of the Dodd-Frank Act.Click to continue

Fifth Third Bank Charged by SIGTARP and SEC

Cherry Red Gavel/Credit: Comstock

The Office of the Special Inspector General for the Troubled Asset Relief Program (SIGTARP) announced that the holding company of Cincinnati-based Fifth Third Bank and its former chief financial officer, Daniel Poston, were charged by the Securities and Exchange Commission (SEC) with improper accounting of commercial real estate loans in the midst of the financial crisis.Click to continue

Federal Regulators Issue Revised QRM Proposal

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On Aug. 28, 2013, the Federal Deposit Insurance Corporation (FDIC), Board of Governors of the Federal Reserve System, Office of the Comptroller of the Currency (OCC), Securities and Exchange Commission (SEC), Federal Housing Finance Agency (FHFA), and U.S. Department of Housing & Urban Development (HUD) issued a revised qualified residential mortgage (QRM) proposal. The proposal, which revises a proposal originally published in 2011, implements Section 941 of the Dodd-Frank Act.Click to continue

New Government Proposal Seeks to Further Streamline QRM

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Six federal agencies have issued a notice revising a proposed rule requiring sponsors of securitization transactions to retain risk in those transactions. The new proposal revises a proposed rule the agencies issued in 2011 to implement the risk retention requirement in the Dodd-Frank Wall Street Reform and Consumer Protection Act.Click to continue

Bank of America Facing Further Fed Scrutiny

Bank of America (illuminated sign)

Attorney General Eric Holder and U.S. Attorney for the Western District of North Carolina Anne M. Tompkins announced that the United States has filed a civil lawsuit against Bank of America Corporation and certain of its affiliates, including Merrill Lynch, Pierce, Fenner & Smith f/k/a/ Banc of America Securities LLC, Bank of America NA, and Banc of America Mortgages Securities Inc. (collectively “Bank of America”).Click to continue

Former Fannie Mae CEO Mudd Takes Leave as Fortress CEO While SEC Investigates

Black Gavel Pic/Credit: Brand X Pictures

Fortress Investment Group, a global investment manager, has announced that Daniel Mudd, former CEO of Fannie Mae, is taking a leave of absence from his role as chief executive officer of the company and member of its Board of Directors. Randal A. Nardone, Fortress principal and co-founder, will serve as interim CEO.Click to continue

SEC Charges Former IndyMac Execs With Securities Fraud

Black Gavel Pic/Credit: Brand X Pictures

The Securities and Exchange Commission (SEC) has charged three former senior executives at IndyMac Bancorp with securities fraud for misleading investors about the mortgage lender’s deteriorating financial condition. The SEC alleges that former Chief Executive Officer Michael W. Perry and former CFOs A. Scott Keys and S. Blair Abernathy participated in the filing of false and misleading disclosures about the financial stability of IndyMac and its main subsidiary, IndyMac Bank FSB.Click to continue

Fed Issues Proposal to Implement Volcker Rule Conformance Period

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The Federal Reserve Board has requested comment on a proposed rule to implement provisions of the Dodd-Frank Wall Street Reform and Consumer Protection Act that give banking firms a defined period of time to conform their activities and investments to the so-called Volcker Rule. The Volcker Rule generally prohibits banking entities from engaging in proprietary trading in securities, derivatives, or certain other financial instruments, and from investing in, sponsoring, or having certain relationships with a hedge fund or private equity fund.Click to continue

Goldman Sachs Fined $650,000 for Mortgage Securities Disclosure Violation

Cherry Red Gavel/Credit: Comstock

The Financial Industry Regulatory Authority (FINRA) announced that it has fined Goldman Sachs & Company a total of $650,000 for failing to disclose that two of its registered representatives, including Fabrice Tourre, a Goldman vice president, had received formal notices from the Securities and Exchange Commission (SEC) that they were the subjects of investigations. Tourre's "Wells Notice" was issued in connection with the SEC's investigation of an offering of a synthetic collateralized debt obligation (CDO) called ABACUS 2007-ACI (Abacus).Click to continue

SEC Settles With Former Countrywide CEO Mozilo for $67.5 Million

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Angelo Mozilo, co-founder of Countrywide, and two former Countrywide executives have agreed to pay out $67.5 million to the Securities and Exchange Commission (SEC) to avoid a trial on insider trading and civil fraud. Mozilo's trial was set to begin in federal court in Los Angeles this coming Tuesday.Click to continue