Joel Tillett and five other former employees were indicted in May on federal charges they conspired to defraud mortgage lenders by submitting loan applications that contained false information.
The the most powerful consumer regulator in the nation raised concerns about aligning the definitions of 'qualified residential mortgage' and 'qualified mortgage.'
The agency watchdog wants HUD to pursue civil remedies against The Lending Company and impose fines for incorrectly certifying that mortgages were eligible for FHA insurance.
The NCUA has filed lawsuits against several investment bankers, including Barclays Capital, Credit Suisse, Goldman Sachs, JP Morgan Securities and UBS Securities alleging securities law violations in the sale of MBS.
FHFA has been analyzing approaches for reducing Fannie Mae and Freddie Mac loan limits across the country, "and any such change would be announced with adequate advance notice for implementation on January 1, 2014" the regulator said.
Thomas Hoenig, vice chairman of the FDIC, said he is particularly interested in exploring the downpayment issue further. Securities investors are also likely to push for downpayment requirements for QRMs.
HUD eliminated the standard 30-year, fixed-rate HECM in April because the default rate on the loans was about four times that of a non-HECM regular mortgage.
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