Some banks may be manipulating prices in Fannie Mae and Freddie Mac unsecured debt, according to several investigations launched late last week.The Department of Justice has reportedly opened a criminal investigation while the law firm of Hagens Berman is investigating the potential fraud.They suspect that traders from several banks have engaged in a coordinated attempt to manipulate pricing. Hagens Berman attorneys encourage investors and whistleblowers to report any information about potential antitrust violations and other fraud in the bond trading market to a tip line they recently established. This type of fraud has a large impact on market participants, according to Steve Berman, managing partner of Hagens Berman.
Treasury counselor Craig Phillips advised meeting participants to assure their bosses and government affairs offices that Treasury is fully committed to the project. “If you have problems, tell them to call me,” he quipped.
Most of the mortgage provisions in the recently enacted Dodd-Frank reform act will not take effect immediately and will require action by the Consumer Financial Protection Bureau.
The Consumer Financial Protection Bureau and Freddie Mac released separate reports in May suggesting that potential borrowers should talk to multiple lenders when seeking a mortgage. The organizations noted that a significant share of borrowers are missing out on thousands of dollars in savings by neglecting to consider offerings from a variety of lenders.
Attorneys at the Consumer Financial Protection Bureau this week formally threw in the towel on the agency’s controversial interpretation of anti-kickback provisions in the Real Estate Settlement Procedures Act.
The trade group argues that if lenders organized as pass-through entities do not receive the new deduction, they will be at a competitive disadvantage...
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