The Department of Justice has announced a new, far-reaching policy regarding individual accountability for corporate misconduct – a change that could significantly affect the way mortgage lenders and securitization participants cooperate with the agency in criminal and civil investigations. A product of a DOJ working group, the new policy is the culmination of the DOJ’s gradual shift towards demanding greater individual accountability and addresses criticism, since the 2008 financial crisis, about the lack of individual accountability in corporate settlements with the DOJ and the Securities and Exchange Commission, particularly mortgage-related civil lawsuits. Under the new policy, corporations must provide...

Lender compensation of loan originators has become a whole new world now that the Consumer Financial Protection Bureau has taken over enforcement for many lenders. During an Inside Mortgage Finance webinar this week, three top legal experts spelled out multiple lessons lenders should learn if they wish to avoid the fate that has befallen some of their peers at the hands of the CFPB. Kristie Kully, a partner with the K&L Gates law firm, drew a number of key take-aways from the first such enforcement action brought by the bureau, which occurred in November 2013, when the CFPB accused Castle & Cook and two of its executives of paying illegal bonuses for steering consumers into costlier mortgages. More specifically, the bureau alleged...

Paul Hindman of Grid Origination Services noted that any public company CEO who does not deliver on performance mandates “is at risk, more so than ever in today’s market.”

Back in the early years after the financial crisis, Fannie and Freddie accounted for 60.0 percent or more of primary-market originations...

"For the CFPB to act on its own in such a bullish manner without concern for the confusion this will cause, along with additional costs for consumers, is unconscionable,” said NAIHP chief Marc Savitt.

Over the past few years, Flagstar has been a selective seller of mortgage servicing rights, lopping off packages as large as $40 billion.

Technology, like MBS, can be complicated. Just read the new FHFA report…

GSE watchers anticipate the salary cap legislation will be signed into law this fall.

Ocwen blames the anticipated loss on lower revenue and higher operating expenses.

Bank of America still leads the industry in buybacks with $539 million on a year-to-date basis, or 28.5 percent of the total for all banks.