News

The nation's foremost securities regulator is considering a civil injunction against Standard & Poor's (S&P) for its rating of a collateralized debt obligation (CDO) linked to high-risk mortgages. S&P's parent company told investors Monday it received notice that the Securities and Exchange Commission (SEC) may proceed with enforcement actions and monetary penalties. At the center of the investigation is a $1.6 billion CDO from 2007, which has been cited as an example of why the financial crisis ran so deep.

State and federal regulators stepped in to close the doors on two community-based lenders over the weekend - one in California and one in Virginia pushing this year's failed bank tally to 73. Citizens Bank of Northern California was acquired by Tri Counties Bank out of Chico, California. Bank of the Commonwealth in Norfolk, Virginia was the larger of the two closings. It was picked up by North Carolina's Southern Bank and Trust Company.

Merscorp, Inc., the parent company of Mortgage Electronic Registration Systems (MERS), has been managing the daily operations of the Mortgage Industry Standards Maintenance Organization, Inc. (MISMO) for the last two-and-a-half years. But effective December 1, 2011, Merscorp will hand that responsibility back to MISMO's parent organization, the Mortgage Bankers Association (MBA).

Mortgage lending has declined sharply in neighborhoods with high levels of foreclosures, according to the Federal Reserve. The U.S. central bank looked at what the Neighborhood Stabilization Program (NSP) identified as ""highly distressed"" census tracts. Based on information gathered under the Home Mortgage Disclosure Act (HDMA), the Fed found that home-purchase lending in these highly distressed tracts was 75 percent lower in 2010 than it had been in these same tracts in 2005, and primarily reflects tighter credit for higher-income borrowers.

Florida has one of the longest foreclosure timelines in the country, and some state lawmakers hope to shorten that timeline by removing the courts from the process. Florida is one of more than 20 judicial states -- states that require foreclosures to funnel through the courts before becoming official. Governor Rick Scott says he is interested in learning more about the prospect of moving to a non-judicial process, but not all state officials are open to the idea.

According to the Federal Housing Finance Agency Office of Inspector General (FHFA-OIG), FHFA's examination process is not up to par. FHFA-OIG says it has identified shortfalls in the agency's examination coverage, particularly in the areas of real estate owned (REO) and default-related legal services. In fact, the inspector general says FHFA has not conducted an examination of the GSEs' management of their REO inventories, despite the surging number of foreclosures, since 2007.

A year after evidence of robo-signing related to the processing of home foreclosures surfaced, state attorneys general don't seem to be any closer to a consensus on what should and shouldn't be included in the settlement. In fact, dissension among states' lead counsels is growing. Attorneys general from Kentucky and Minnesota have now joined the faction questioning the thoroughness of the investigation. Of particular concern is liability related to securitizations and the use of MERS.

Veros Real Estate Solutions and JVI Solutions LLC announced the launch of VeroINSIGHT this week. It&'s a comprehensive property condition report to address new regulatory guidance surrounding collateral evaluations. According to the two companies, VeroINSIGHT goes beyond existing collateral evaluation products by uniformly capturing aspects of the property's current condition, as well as its general marketability.

Ellie Mae, a provider of automation solutions for the residential mortgage industry, announced Friday that it has appointed Lisa Schreiber as the company's new VP of lender business development. In her new role, Schreiber oversees the company's efforts to build and maintain productive, collaborative relationships with mega-lenders and correspondent investors. Her first major undertaking with Ellie Mae is managing the implementation of the company's TQL (Total Quality Loan) program by a top five mega-lender.

Equator, a Los Angeles-based provider of ecommerce, data, and professional services to the default servicing industry, is releasing a new product designed exclusively for real estate agents. ""This is the first time there's an enterprise-level solution for agents,"" Chris Saitta, CEO of Equator told DSNews.com. Currently, most agents rely on a variety of software, but REvolution will them to manage all their daily tasks through one program.