In coordination with the federal-state Residential Mortgage-Backed Securities Working Group, the Securities & Exchange Commission (SEC) charged JP Morgan Securities LLC and Credit Suisse Securities (USA) with misleading investors in offerings of residential mortgage-backed securities (RMBS). The firms agreed to settlements in which they will pay more than $400 million combined, and the SEC plans to distribute the money to harmed investors.Click to continue

The Financial Crimes Enforcement Network (FinCEN), a bureau of the U.S. Department of the Treasury, recently finalized regulations (Final Rule) requiring non-bank Residential Mortgage Lenders and Originators (RMLOs) to establish an Anti-Money Laundering Program (AML Program) and file Suspicious Activity Reports (SARs), as FinCEN requires of other types of financial institutions.¹Click to continue

The Securities & Exchange Commission (SEC) has charged H&R Block subsidiary Option One Mortgage Corporation with misleading investors in several offerings of sub-prime residential mortgage-backed securities (RMBS) by failing to disclose that its financial condition was significantly deteriorating. Option One, now known as Sand Canyon Corporation, agreed to pay $28.2 million to settle the SEC’s charges. The SEC alleges that Option One promised investors in more than $4 billion worth of RMBS offerings that it sponsored in early 2007 that it would repurchase or replace Click to continue

The Securities & Exchange Commission (SEC) has charged the senior-most executives at Thornburg Mortgage Inc. with hiding the company’s deteriorating financial condition at the onset of the financial crisis.Click to continue

The Securities and Exchange Commission (SEC) charged six former top executives from Fannie Mae and Freddie Mac with securities fraud, alleging they knew and approved of misleading statements claiming the companies had minimal holdings of higher-risk mortgage loans, including sub-prime loans. Fannie Mae and Freddie Mac each entered into a Non-Prosecution Agreement with the SEC in which each company agreed to accept responsibility for its conduct and not dispute, contest, or contradict the contents of an agreed-upon Statement of Facts without admitting nor denying liability.Click to continue

Florida Gov. Rick Scott and the Florida Cabinet have appointed Tom Grady of Naples as Commissioner of the Florida Office of Financial Regulation. Since 1982, Grady has practiced law with Grady and Associates, focusing on the areas of securities, investment advisor and financial industry regulation, litigation, arbitration and mediation. He has been active in securities organizations aimed at educating and safeguarding the public and raising the standards of professionalism within the brokerage industries.Click to continue

The National Association of Mortgage Brokers (NAMB) has announced that it has submitted a comment letter to regarding the proposed amendments to Regulation Z, related to credit risk retention and qualified residential mortgage (QRM) requirements under the Dodd-Frank Wall StreeClick to continue

U.S. Attorney Laura E. Duffy has announced that Matthew "Beau" La Madrid has been sentenced by U.S. District Court Judge William Q. Hayes to serve to serve 120 months in federal prison term in connection with his operation of the Plus Money Premium Return Funds (PRF) and related real estate investment and mortgage fraud schemes.Click to continue

Lee Farkas of Ocala, Fla., former chairman and owner of Taylor Bean & Whitaker Mortgage Corporation (TBW) has been sentenced to 30 years in prison and ordered to forfeit approximately $38.5 million for his role in a $2.9 billion-plus fraud scheme that contributed to the failure of TBW and Colonial Bank. At one time, TBW was one of the largest privately-held mortgage lending institutions in the United States and Colonial Bank was one of the 25 largest banks in the United States.Click to continue

Paul Allen, former chief executive officer of Taylor Bean & Whitaker Mortgage Corporation (TBW), has been sentenced to 40 months in prison for his role in a $2.9 billion-plus fraud scheme that contributed to the failure of TBW. Allen of Oakton, Va., pleaded guilty in April 2011 to one count of making false statements and one count of conspiring to commit bank and wire fraud.Click to continue