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Tag Archives: FDIC

Experian Designs Program to Help Underbanked Consumers

Experian announced this week that it will incorporate positive rental data into the traditional credit file in an effort to help underbanked consumers build credit. According to the FDIC Web site, an estimated 17.9 percent of U.S. households, roughly 21 million, are underbanked. Experian says having positive rental history reflected in their credit scores will help consumers who may have faced financial hardships such as foreclosure or bankruptcy rebuild their credit.

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FDIC’s Bair Warns of Double-Dip if Servicing Problems Aren’t Remedied

FDIC Chairman Sheila Bair warned mortgage bankers that failure to take immediate and decisive action to deal with breakdowns in servicing procedures will trigger a double-dip in U.S. housing markets and keep the industry deeply mired in a cycle of credit distress. Bair's fix includes instituting new fee structures so that servicers aren't forced to cut corners and establishing a claims commission funded by servicers to compensate borrowers who've been impacted by substandard practices.

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Regulators to Release Results of Foreclosure Probe Next Month

The task force assembled by federal banking regulators to investigate the industry's servicing and foreclosure practices after the robo-signing scandal broke is expected to release the results of its findings as early as February. John Walsh, acting head of the Office of the Comptroller of the Currency, says on-site reviews by task force examiners are ""largely complete"" and federal agencies have begun the next phase of formulating actions that should be taken to ""fix problems in the mortgage servicing and foreclosure area.""

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Bank of the Ozarks Acquires Georgia Lender in FDIC-Assisted Deal

Oglethorpe Bank in Brunswick, Georgia, was shut down by state regulators over the weekend. The FDIC brokered a deal with Bank of the Ozarks in Little Rock, Arkansas to take over the operations of the failed lender. The Georgia bank marks the third bank closing of 2011, just two weeks into the new year. Bank of the Ozarks has been rapidly expanding its presence in the southeastern part of the United States. This is its fifth FDIC-assisted acquisition in the area within the past year.

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FDIC May Have Stricter Servicing Rules in the Works For Banks

Reports have surfaced that the FDIC is contemplating stricter requirements that would force banks to disclose what potential ramifications a loan modification on a first lien they service would have on an underlying lien. Industry analysts have speculated that servicers may be reluctant to modify a primary loan because the bank that services the loan also holds the second lien. Such an arrangement could be considered a conflict of interest and prompts some to wonder if investors would be swayed if they knew of the arrangement beforehand.

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Florida and Arizona Banks Become First Failures of 2011

Just one week into the new year and regulators have moved to shut the doors on two community-based lenders -- First Commercial Bank of Florida in Orlando and Scottsdale, Arizona's Legacy Bank. Officials at the FDIC have said they expect bank failures to begin tapering off from last year, when a total of 157 financial institutions were shuttered and the lingering effects of bad real estate loans made at the height of the boom undermined many banks' balance sheets and left capital levels below regulatory requirements.

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IAS Says New Appraisal Guidelines Put More Stress on Lenders

New guidelines released last month for real estate appraisals and evaluations will require any transaction originated or purchased by certain agencies to report conditions that affect the estimate of the collateral's market value. The Federal Financial Institutions Examination Council for real estate appraisals and evaluations require transactions to address the actual physical condition and characteristics as well as the economic and market conditions that may affect value.

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Mortgage Casualties Decrease in 2010: Industry Report

Fewer mortgage-related firms closed their doors during 2010 than in 2009, according to newly released industry data. Including mortgage companies, retail and wholesale credit unions, and federally insured banks, the report tracked 201 mortgage-related business operations that either failed or were shut down during 2010. The casualty list was smaller than 2009's count, which stood at 230 mortgage-related fatalities - the most since 1998, when the report was first issued.

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Former Comptroller of the Currency Joins Covington & Burling

Former comptroller of the currency John C. Dugan will rejoin Covington & Burling LLP as a partner, according to an announcement from the Washington, D.C., firm. Dugan will chair the firm's Financial Institutions Group and advise clients on legal matters affected by increased regulatory requirements resulting from the financial crisis. Dugan led the U.S. Treasury's Office of the Comptroller of the Currency (OCC) for five years, until stepping down from the role on August 14, 2010.

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Pitch for National Mortgage Servicing Rules Gains Momentum

The call for federal officials to establish industry-wide mortgage servicing and foreclosure standards is getting louder. A group of more than 50 senior economists, academic leaders, and influential investors sent a letter to the heads of federal regulatory agencies Tuesday, urging them to take the lead in setting national standards for mortgage loan servicers. The group argues that widely reported fraud in servicers' dealings with homeowners and foreclosure procedures demands new standards be adopted now.

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