Investments

Wells Fargo to pay $3.4 million over investment sales practices

FINRA orders bank to pay impacted customers
The Financial Industry Regulatory Authority ordered Wells Fargo Clearing Services and Wells Fargo Advisors Financial Network to pay more than $3.4 million in restitution to affected customers over faulty sales practices. Separate from its fake accounts scandal announced back in September 2016, FINRA said the Wells Fargo broker-dealers made unsuitable recommendations to customers.
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Inspector questions Fannie Mae’s new controversial Washington D.C. headquarters

FHFA Director responds to negative feedback from FHFA OIG
An updated report from the Federal Housing Finance Agency Office of Inspector General thrust issues surrounding Fannie Mae's new headquarters back into the spotlight. The report further fuels those in Congress who say the building costs are excessive and expensive to taxpayers. FHFA Director Mel Watt, however, adamantly disagrees.
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OMB Director Mulvaney calls for canceling NFIP's $16 billion debt

Tells Trump: "The program must also be reformed"
The strength of the National Flood Insurance Program was put to the test after the devastating destruction from Hurricane Harvey, Irma and Maria, and unfortunately, it failed to hold up. In a letter to the president, Office of Management and Budget Director Mick Mulvaney addressed how the program requires immediate financial relief and future reform.
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Watt suggests GSEs need to hold some capital, urges Congress to act on housing reform

GSE capital buffer will hit 0 soon
Federal Housing Finance Agency Director Mel Watt once again pressed Congress on the urgent need for housing finance reform due to the imminent government-sponsored enterprise capital buffer timeline. In less than three months, both Fannie Mae’s and Freddie Mac’s capital buffer will fall to zero. Is the market ready for this?
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Monday Morning Cup of Coffee: Feds finally end AIG oversight

Plus, Mnuchin defends tax plan and some good news in Miami
In just the latest chapter of the Trump administration's deregulation playbook, The Financial Stability Oversight Council, created by Dodd-Frank and comprised of 10 senior financial regulators, including Treasury Secretary Steven Mnuchin, CFPB Director Richard Cordray and Federal Reserve Chair Janet Yellen, voted to remove federal oversight of American International Group Friday night.
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CoreVest expands into wholesale lending for real estate investors

Seeks brokers who serve investors
CoreVest American Finance Lender, the lender formerly known as Colony American Finance, is expanding into wholesale lending for real estate investors. To lead the company’s expansion into wholesale lending, CoreVest hired Samuel Bjelac to serve as vice president of wholesale lending.
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