The Financial Industry Regulatory Authority fined Citigroup Global Markets [stock C][/stock] $3.5 million for issuing inaccurate mortgage quality data on subprime residential mortgage-backed securitization deals.Finra claimed in...
Long-time HW readers may recall an earlier brouhaha over failed Orange County, Calif.-based brokerage Brookstreet Securities Corp., and regulators' subsequent investigation into collateralized mortgage obligations, or CMOs; at the time, the Financial Industry Regulatory Authority said it was probing individual brokerages over suitability concerns tied to CMOs.
There aren't many areas of the mortgage origination business that are booming, but one area -- reverse mortgages -- has seen high growth despite the industry downturn. And it's now an area that financial experts are growing increasingly concerned about.
Both the Wall Street Journal and Bloomberg reported Friday morning that the Financial Industry Regulatory Authority -- FINRA for short -- is investigating securities brokerage firms' marketing and sale of collateralized mortgage obligations.
HW readers may recall coverage of Orange County, Calif.-based Brookstreet Securities Corp., which went belly-up in June over bad CMO bets.
The CFPB left the grace period open-ended and most in the industry interpreted that to mean that it will last throughout the rest of 2015, at least. Unfortunately, as welcome as that grace period is, TRID remains a costly and complicated fix that has enormous implications for the whole industry..
“Bad letters damage the brand,” Katherine Porter says. “There’s a contagion effect of this. I think bad letters are unjust. They disproportionately harm the borrowers we need to help the most.” Read More