Taylor Bean Settles With 13 States
Allegations of mortgage fraud on nontraditional loans have led to a $9 million settlement with 13 states by Taylor, Bean & Whitaker Mortgage Corp. As part of the agreement, the company will implement a federal modification program.

The Ocala, Fla.-based lender has agreed to pay $9 million in fines as part of a settlement with 13 states, Pennsylvania's Department of Banking announced today.

The funds will be utilized by the states to regulate mortgage activity -- with half going towards ongoing development and maintenance of the Nationwide Mortgage Licensing System.
read full story

Mortgage Insurer Changes TPO Requirements
One mortgage insurer is changing requirements tomorrow for loans originated by third parties, and another has developed special guidelines for a special refinance program.

Loan Search Technology Proliferates
Prospective customers are being given one month to try out the loan pricing technology of one provider. Another offering enables originators to provide a loan search function on their own Web sites -- a feature that generates mortgage leads. A California company claims its pricing technology helps loan officers maintain mortgage compliance.

2 Casualties
So far today, one financial institution has been seized. Earlier this month, a third-party commercial mortgage unit was closed by a Wells Fargo & Co. subsidiary. The closing of more than 70 mortgage-related operations have been tracked to date during 2009.

More Compliance Deadlines Loom
As third-party lenders outline new procedures for the new Home Valuation Code of Conduct, one new online service for mortgages brokers promises to reduce some of the stress of complying. But following HVCC rules is not the biggest compliance issue facing mortgage lenders this year.

Delinquency, Originations Improve at PHH
Unlike many in the industry, PHH Mortgage pushed delinquency lower and broker production higher. Still, the company cut its mortgage headcount by more than 300.

National Wholesaler Closes
The national wholesale lending subsidiary of an 86-year-old bank has halted new business. The move is a blow to the 5,000 primarily small mortgage brokers that the unit served.

Biggest Reverse Mortgage Lenders
Quarterly and monthly reverse mortgage volume increased, with some wholesale lenders capturing more of the growth than others. One player has seen its market share drop by more than 10 percent.

Fannie, Other Firms Make Changes at Top
An 18-year veteran has been tapped to run Fannie Mae as the current chief joins the Obama administration. Executives at one wholesale lender are resigning over litigation tied to the failed company they previously worked for, and two executives who previously worked at financial firms have died.

BoA Wholesale Cleaning House
Bank of America Corp., which dropped its mortgage broker operation in 2007 then re-entered the business with last year's acquisition of Countrywide Financial Corp., is cleaning house at the unit.