RESPA Violations Prove Costly for Bank, Builder
A Texas bank has been fined, and a Texas builder has agreed to a settlement over alleged violations of the Real Estate Settlement Procedures Act tied to joint ventures.
Stratford Mortgage Services LC was created in 1999 as a joint venture between Benchmark Bank and home builder Paul Bennett Taylor.
Taylor and Benchmark each owned 50 percent of the venture. Taylor was a vice president of Stratford, and Benchmark Bank's president served as Stratford's president and chief executive officer.
Settlement Relieves Ally of Mortgage Liabilities
A settlement reached with creditors of its former mortgage subsidiary will free Ally Financial Inc. from most of its mortgage liability to third parties.
More Bank Executives Headed to Prison
Whoever said that nobody has gone to jail for causing the financial crisis hasn't been following the numerous criminal cases against former executives of failed banks. Defendants are accused of a range of crimes including mortgage fraud, embezzlement and accounting fraud.
Failed Bank's Former President Indicted Last Year
Losses at one of last week's bank failures are expected to exceed 40 percent of its assets. The former president at the bank had been indicted for loan fraud that allegedly occurred while he was at the firm. Two other financial institutions are also no longer in business.
Acquisition Shakes Up CRE Servicer Standings
Two deals announced this week will create a new No. 3 servicer of commercial real estate loans and substantially reduce the CRE servicing portfolio of a mega-bank.
Nationstar Mortgage Holdings Inc. reported record originations, grew its mortgage servicing portfolio and expanded its workforce. Thanks to the acquisition of another lender as well as the purchase of additional mortgage servicing rights -- the outlook is for further growth.
Caliber Assembles Full-Service Shop
A mortgage banker that already generates mortgage originations through retail and wholesale channels is now opening a correspondent lending channel.
Obama Nominee Has Ties to Failed Bank
President Obama's choice for commerce secretary might face some resistance in her confirmation process as a result of her role two decades ago as chairman of a bank that subsequently failed under the weight of subprime lending.
Former Wells Chief Says GSEs Should be Eliminated
The former chief of Wells Fargo & Co. says that Fannie Mae and Freddie Mac must go. He sees the Federal Housing Administration as the government's ongoing tool for housing subsidies.
Ally Winding Down Mortgage Business
Mortgage originations were off more than a third during the first three months of 2013 at Ally Financial Inc., which is effectively exiting the home loan business.