A proposal from the Financial Crimes Enforcement Network would require Fannie Mae and Freddie Mac to develop their own anti-money laundering programs as part of an ongoing effort to combat mortgage fraud.
The proposal would also require the government sponsored enterprises, including the Federal Home Loan Banks, to file suspicious activity reports directly with Fincen. The GSEs currently file fraud reports with the Federal Housing Finance Agency, which then files SARs with Fincen when the facts in the particular fraud report warrant it, Fincen said in a press release Thursday.
“This action is another step to help restore the integrity of the mortgage market,” Fincen Director James H. Freis, Jr. said in the press release. “Providing law enforcement with quicker access to data about potential financial crimes will help them better hold illicit actors accountable for mortgage fraud and other scams.”
Fincen said it coordinated with FHFA in drafting the proposal, and said it expects the new AML and SARs programs can be effectively integrated into the GSEs’ existing anti-fraud policies. FHFA Acting Director Ed DeMarco said the rule is a positive step, and will help streamline the process and build on efforts to fight mortgage fraud.
Developing such programs will also allow directors, officers and employees of the GSEs to benefit from the Bank Secrecy Act’s safe harbor provisions, according to the press release. The comment period is open for 60 days.
Daily Briefing | Friday, November 4, 2011
Job Losses in the Mortgage Industry Begin to Ebb
Mortgage companies pared their payrolls by just 300 full-time employees in September, compared to 3,400 cuts the prior month, according to new government figures released Friday morning.
HAMP Mods Rise Nicely, Including Principal Reductions
Residential servicers completed nearly 40,150 HAMP modifications in September, a 60% improvement from August, according to figures released by the U.S. Treasury Department.
A Deal May be Afoot to Restore GSE Loan Limits
A decision to restore the $729,750 maximum loan limit on government-backed loans likely will be made by House and Senate leaders — and not the appropriators, according to industry sources following the issue.
Genworth’s Loss Halved
The U.S. mortgage insurance business at Genworth Financial Inc., Richmond, Va., nearly halved its year-over-year loss in the third quarter as new flow delinquencies declined 14% from the previous year and new insurance written was up by 13% in the same timeframe.
Ranieri’s Selene Hires Litton and Other Top Managers
Selene Finance, a specialty servicer/loan modification company controlled by Lewis Ranieri, has hired Larry Litton Jr., and a handful of top managers from Litton Loan Servicing, Houston, according to servicing executives that have done business with the firm.
Redwood Sees Big Earnings Drop but Jumbo Production Spikes
Redwood Trust, the only firm to publicly issue jumbo MBS the past two years, earned just $1 million in the third quarter, but its acquisition of nonconforming product in the secondary market jumped by 166%.
AIG Posts Small Loss
American International Group, New York, reported a net loss of $4.1 million, which includes a $931 million decline in the fair market value of AIG’s holdings in Maiden Lane III and a $43 million decline in the fair market value of its subsidiary SunAmerica’s holdings in Maiden Lane II.
LPS Wins Court Battle Against FDIC in WaMu Appraisal Case
U.S. District Court for the Central District of California Thursday dismissed a civil claim filed against Lender Processing Services by the Federal Deposit Insurance Corp., which accused the mortgage vendor of gross negligence in appraisals conducted for the now defunct Washington Mutual, Seattle.
Another Protest to Draw Attention to Foreclosure Impact
The outcry against the financial sector has taken yet another turn, this time with a petition calling on the Minneapolis School Board to move its payroll and other accounts from Wells Fargo to a local community bank as a way to highlight the connection between foreclosures and local school systems.