FHA consultant Brian Chappelle of Potomac Partners told IMFnews, “I give FHA credit for trying to solve a problem it didn’t create but the DOJ is the elephant in the room.”

A day after the news broke that W.J. Bradley Mortgage has shut its doors, competition is heating up for some of its top loan officer and executive talent...

The mortgages have seasoned for an average of 14 months and have pre-TRID application dates.

One observer had this to say about the firm closing: "They literally shut their doors ... no vacation time pay either..."

An investor in Ocwen, for instance, that bought into the stock two years ago at $60 a share is now facing a loss of 96 percent.

Tim Pagliara, executive director of Investors Unite, is the lone plaintiff in this case...

At last check, W.J. Bradley employed roughly 500 workers...

But does this mean the HUD Inspector General and Department of Justice will ease up on suing lenders?

John Shrewsberry, a senior vice president at Wells Fargo, said the bank has focused on adding jumbo mortgages to its portfolio. “They are very safe loans,” he said. “I think we’ve got four basis points of loss coming through that portfolio.”

HUD’s Single Family Policy Handbook authorizes lenders to order testing or remediation to ensure that the property’s public-water supply has acceptable levels of contaminants.