SunTrust Mortgage will pay $320 million to resolve a criminal investigation and allegations that the bank misled homeowners interested in the Home Affordable Modification Program, the Department of Justice announced late last week. In the first settled case of its kind, SunTrust allegedly misrepresented how long it would take to determine if a borrower was qualified for HAMP and how long the trial period would last. “Specifically, SunTrust made...

An industry that is used to reading about MERS’ court victories was stunned last week after a federal court judge in Pennsylvania found Merscorp Inc. and its electronic mortgage registry system in violation of state recording laws for real estate properties. While the ruling by U.S. District Court Judge J. Curtis Joyner may be appealed, MERS could be held liable for its role as an “agent” for member-lenders involved in property transfers and for alleged unjust enrichment, according to legal experts. The case was brought...

We know of some veteran mortgage bankers who believe the “fix and flip” housing market is getting overheated. One lender told us he fears a severe correction could hit California…

At the very least, MI firms must have $400 million in capital, and $500 million if the company is start-up mortgage insurer.

“Under the proposed amendment, lenders who pursue these deceptive practices may receive a safe harbor for these transactions,” the CSBS said.

An early analysis of second quarter loan level data suggests that residential originations were a little better in the April to June time-frame than some might believe. See this website on Thursday for more information…

Bank of America is the mortgage complaint king with 38,098 official gripes filed with the Consumer Financial Protection Bureau.

The payment amounts to the borrowers range from several hundred dollars to $125,000, according to the Independent Foreclosure Review audit.

Investors that have bought stock – and debt instruments – in the MIs are anxious about the phase-in period for the capital standards.

Avalos’ resolution targets approximately 300 underwater private-label security loans that were made on homes “particularly concentrated in San Francisco’s historically black, Latino and Asian working class communities.”