According to court filings, Wachovia Capital Markets, which served as one of the underwriters and book-runners for the NovaStar deals, provided investors with misleading statements in its SEC registrations and offering documents.
Anurag Agarwal, president of compliance risk analysis at Asurity Technologies, warned of an increase in regulatory examinations and fair lending inquiries from community groups and the media once the complete data set is available to the wider public.
As recently as late April, Quicken reiterated it would not settle the False Claims Act case even though both parties earlier this spring agreed to work with a court-appointed mediator to try to resolve their dispute.
But Moody’s sees it differently, stating “more competitors could lead to weaker underwriting standards or price competition, both credit negatives for the GSEs’ creditors. How negative this would be depends on how quickly, and predictably, their market share declined.”
Quicken Loans signed a $32.5 million agreement with the federal government to settle FHA underwriting allegations that accused the nation’s largest direct lender with fraud. As part of the deal, the privately held nonbank – the creation of Midwestern businessman Dan Gilbert – did not admit any wrongdoing and will continue to originate and service FHA loans…
Mark Calabria of the FHFA: “But from a risk perspective there are some key differences between banks and non-banks that we need to address in a responsible way. Prudent, sustainable risk management is one of my top priorities.” The regulator did not elaborate much...
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