A New York federal judge has allowed the Justice Department to proceed with its civil fraud lawsuit against Bank of America in connection with the packaging and sale of mortgage-backed securities to Fannie Mae and Freddie Mac, but not before dismissing a significant portion of the government’s claim. U.S. District Judge Jed Rakoff dismissed claims for damages and penalties under the False Claims Act in an expedited ruling two weeks ago. In October 2012, the government filed suit against BofA, as successor to Countrywide, alleging BofA inherited and continued to operate Countrywide’s loan program known as the “Hustle.”
A federal appeals court has ruled in favor of Fannie Mae and Freddie Mac, overturning a lower court ruling that the counties and state of Michigan were entitled to collect local real estate transfer taxes from the two government-sponsored enterprises. This week’s unanimous ruling by a three-judge panel from the U.S. Court of Appeals for the Sixth Circuit said the lower court is not in a position to second-guess Congress by creating exemptions to tax statutes. “The statutes at issue here plainly state that the defendants are exempt from ‘all taxation,’” the court ruled. In June 2011, Oakland and Genesee counties each filed suit claiming Fannie and Freddie recorded deeds and other conveyances without paying the Michigan Transfer Tax.
Republicans and even some Democrats in the House are calling for significant changes to the Consumer Financial Protection Bureau’s ability-to-repay rule, but legislative changes appear unlikely as Democrats oppose most of the GOP proposals. One bill that is furthest along the uncertain legislative process is HR 1077, the “Consumer Mortgage Choice Act,” which would exempt certain fees from the 3 percent cap on points and fees for qualified mortgages under the ATR rule. The bill has 34 co-sponsors, including nine Democrats. Sens. Joe Manchin, D-WV, and Mike Johanns, R-NE, introduced companion legislation in the Senate last week. The bills have...
Whichever way the U.S. Supreme Court rules on the constitutionality of presidential recess appointments, the decision would probably cause more uncertainty and turbulence in the industries the ruling will likely affect, according to legal and policy analysts. SCOTUS is considering a petition filed last month by the Obama administration and the National Labor Relations Board to review a controversial ruling by the District of Columbia Court of Appeals that calls into question the validity of President Obama’s appointment of three new members of the board in January. In Noel Canning v. NLRB, the plaintiff challenged...
The FHFA IG acknowledged the regulator's progress in stabilizing Fannie Mae and Freddie Mac but said the agency “can do more to enhance its role as conservator and regulator.”
The lack of a specific computer code for reporting short-sale mortgage transactions is creating numerous false reports of foreclosure on consumer credit reports, inhibiting their re-entry into the housing market, according to lawmakers on Capitol Hill and consumer advocates. Earlier this month, Sen. Bill Nelson, D-FL, dispatched letters to the Federal Trade Commission and the Consumer Financial Protection Bureau citing the “disturbing” consumer credit reporting practice of lumping short sale within the same industry code as a foreclosure in consumers’ credit reports. “If a short sale is reported...
Ginnie Mae issuers may buy out mortgage loans that are due but unpaid for four consecutive installments even if the borrower has made partial payments.
Analysts at Bank of America Merrill Lynch and elsewhere cite evidence of a “creeping goal line” to move back by 12 months the June 1, 2009, cut-off date for HARP eligibility.
Reps. Shelley Moore Capito, R-WV and Sean Duffy, R-WI, respectively chairman and vice chairman of the subcommittee, had not viewed the CFPB’s analysis on QM.
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