Government

Ally Financial is the fifth bank to reach a settlement with the federal government over soured mortgage bonds sold to Fannie Mae and Freddie Mac prior to the housing and foreclosure crisis. The bank announced Tuesday that it settled the 2011 lawsuit brought by the Federal Housing Finance Agency over toxic mortgages. Ally also reached a separate settlement with the FDIC to resolve pending litigation related to the company's legacy mortgage dealings.

JPMorgan Chase's $4 billion settlement with the Federal Housing Finance Agency (FHFA) reached late last week ""sets a relatively high bar"" for the 13 other banks still facing litigation from the federal agency, according to Fitch Ratings, which suggested Tuesday that some of the banks may need to increase their litigation reserves before settling. The $4 billion is about 12 percent of the original face value of the private-label mortgage-backed securities for which FHFA sought damages.

DocuTech Corp., a compliance and documentation technology company headquartered in Idaho, has partnered with Veri-Tax to automate the 4506-T IRS verification process in its flagship software ConformX. The company says this technology enhancement will help lenders to simplify the disclosure process while ensuring compliance with consumer protection regulations.

Dr. Amy E. Alving has been elected to Fannie Mae's board of directors, the GSE announced. Alving is a seasoned technology leader who has worked as chief technology officer of Science Applications International Corporation, director of the Special Projects Office at the Defense Advanced Research Projects Agency, and a White House fellow.

The Mortgage Bankers Association (MBA) started off its 100th Annual Convention Sunday with the election and swearing-in of its board of directors for the 2014 membership year.

JPMorgan Chase reached agreements to resolve its mortgage-backed securities litigation with the Federal Housing Finance Agency (FHFA) and rep and warranty repurchase claims from Fannie Mae and Freddie Mac. Altogether, the bank has agreed to pay $5.1 billion to the GSEs.

Though Capitol Hill's gridlock over the debt ceiling was resolved--for now, at least--mortgage rates this week took a spill as market uncertainty spooked investors. Freddie Mac released its Primary Mortgage Market Survey Thursday, which shows the 30-year fixed-rate mortgage falling to an average rate of 4.13 percent for the week ending October 24, down from 4.28 percent last week and hitting its lowest point in about four months.

Alliant National Title Insurance Company, a title insurance underwriter that partners with independent agents, announced the hiring of Katherine Kitty Stevens, Esq. as VP of Florida agent training and business development.

A 10-person panel of jurors is holding Bank of America and a mid-level manager liable for high-risk mortgages originated by Countrywide through a program known as Hustle and then sold off to Fannie Mae and Freddie Mac. After hearing arguments for four weeks in a Manhattan federal court, the jury returned a decision finding BofA liable on one charge of fraud in the civil case and finding Rebecca Mairone, former COO of one of Countrywide's lending divisions, liable on the one civil fraud charge she faced.

The National Foreclosure Mitigation Counseling (NFMC) program has provided counseling to almost 1.6 million homeowners across the country since the program started in 2008. According to an NFMC congressional report released this week, common attributes of struggling homeowners include unemployment or underemployment and high mortgage rates. The report also indicates a homeowner who seeks counseling is 97 percent more likely to obtain a loan modification and avoid foreclosure.