Items Tagged with 'John M. Reich'

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  • IndyMac Modifications Outperform Industry Redefault Standard

    Months after IndyMac Federal Bank failed a year ago, the Federal Deposit Insurance Corp. (FDIC) implemented a streamlined modification program to improve the performance of seriously delinquent or defaulted mortgages. As of May 31, 2009 the redefault rate among modified IndyMac Federal Bank (IndyMac) loans was 15.6%. The bulk of these modifications took place in Q408 -- as early as September 2008, according to FDIC spokesperson David Barr -- indicating many of these loans are at least six months past modification.
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  • Senate Considers Regulation of Mortgage Products

    The Senate Committee on Banking, Housing and Urban Affairs heard testimony today from industry leaders on the proposed creation of the Consumer Financial Products Administration (CFPA), a new regulatory agency that would oversee financial products such as mortgages and other loans that are marketed and sold to consumers.
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  • Systemic Regulator Talks Get Bankers Talking

    As the discussions around toxic loans held on banks' balance sheets and their appropriate buyers escalates this week, another hot button issue -- the regulation of the banks themselves -- prompted at least one industry group to speak up on behalf of banks.
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  • Lawsuit Links Bad Underwriting, Investor Loss at IndyMac

    A class-action lawsuit alleges IndyMac Federal Bank failed to meet its own underwriting guidelines on certain securitized mortgage loans. The suit points toward substantially higher rates of delinquencies and foreclosures on collateral for these highly-rated debt issues. As a result of the collateral's poorer-than-estimated performance, the complaint says, underwriter rating agencies had to downgrade a number of pass-through certificates, forcing a substantial decline in their value and loss to investors who purchased the certificates.
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  • Geithner Appoints OTS Acting Director

    The Office of Thrift Supervision announced Friday that Treasury Secretary Timothy Geithner appointed John E. Bowman, Deputy Director and Chief Counsel, to succeed Scott Polakoff as Acting Director of the OTS. Bowman joined the OTS in June 1999 as Deputy Chief Counsel for Business Transactions, heading the agency’s division that provides legal services related to corporate applications, acquisitions and financing transactions, securities filings and other related activities. He also oversaw OTS’s regional counsel and enforcement operations.
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  • OTS Chairman Steps Down

    John Reich, Director of the Office of Thrift Supervision, on Thursday announced his resignation from the agency. Reich and Obama administration officials may have been at odds over whether the government should take part in mortgage workouts to help troubled homeowners, according to a Market Watch report.
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  • Frank and OTS Urge Foreclosure Moratoriums

    A key member of Congress and one federal regulator Wednesday urged financial institutions to enact foreclosure moratoriums, until lawmakers hash out the details of a "comprehensive" plan to address the housing crisis, which is currently in the works. "I would ask all of you now to please make sure that we have a moratorium in effect," Frank said at a hearing before the Senate Budget Committee Wednesday, where the CEOs of eight major banks were drilled as to their usage of government aid.
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  • Sale of IndyMac to Private Equity Investors Approved

    The Federal Deposit Insurance Corporation's Board of Directors approved Friday the sale of Pasadena-based IndyMac Federal Bank, FSB, to a thrift holding company controlled by IMB Management Holdings LP for a price tag of $13.9 billion. IMB HoldCo is owned by a consortium of private equity investors led by Steven Mnuchin, former Goldman Sachs partner and current co-CEO of Dune Capital Management LP.
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  • IndyMac Probe Uncovers Backdated Cash Infusion

    The Office of Thrift Supervision just might need some supervision for itself. The Treasury Department's independent investigator revealed Monday that OTS allowed IndyMac Bancorp, formerly one of the nation’s largest Alt-A mortgage lenders, to backdate an $18 million capital infusion to maintain its status as a "well-capitalized" institution -- hence, escaping regulatory restrictions -- just two months before the bank's collapse in July.
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  • Bair: 3,500 Mortgages Modified at IndyMac Under FDIC Program

    In testimony Thursday on Capitol Hill, Federal Deposit Insurance Corp. chairman Sheila Bair provided the first public update on the FDIC's loan modification program put into place at IndyMac Federal Bank since it was introduced roughly two months ago. The agency took over IndyMac in July, and announced the loan modification program on Aug.
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