The Securities and Exchange Commission’s recent $12.7 million settlement with First Mortgage Corp. and several of its top executives over an allegedly fraudulent sale of toxic MBS to investors reveals the agency’s hidden role as a regulator of Ginnie Mae issuers, attorneys at Mayer Brown warned. Though seldom in the news, the SEC continues to bring enforcement actions against public companies that commit fraud involving Ginnie MBS, as seen in the FMC case, and previous enforcement actions against Taylor Bean & Whitaker and Radius Capital, the attorneys noted in a recent analysis. When bringing these cases, the SEC seeks...