Government

Citing the “cumulative progress toward maximum employment and the improvement in the outlook for labor market conditions” since the start of the current stimulus program in 2012, the Federal Open Market Committee decided at its March meeting to reduce purchases of agency mortgage-backed securities to a pace of $25 billion per month and to dial back purchases of long-term Treasury securities to a pace of $30 billion each month, starting in April.

California's Department of Business Oversight announced the state has joined 48 others in reaching a $2.1 billion settlement with Ocwen Financial Corporation and Ocwen Loan Servicing. The lawsuit stems from Ocwen's acquisition of two mortgage servicers, Litton Loan Servicing, LP and Homeward Residential, Inc., in 2011 and 2012, respectively. Ocwen was held liable for prior malfeasance regarding mortgage servicing laws.

The appointed monitor for the National Mortgage Settlement revealed Tuesday that all banks involved in the settlement have satisfied their consumer relief and refinancing obligations—and nearly a year ahead of schedule. In a release, Joseph A. Smith Jr. commented, "Because of the way this landmark agreement was designed, an unprecedented amount of relief has been provided to consumers quickly and efficiently."

According to numbers from the Census Bureau and HUD, privately owned housing starts in February were at a seasonally adjusted annual rate of 907,000, down 0.2 percent from January’s revised estimate of 909,000 and 6.4 percent below the February 2013 rate of 969,000. On just the single-family side, builders started work last month at a rate of 583,000 homes per year, 0.3 percent above January’s revised figure.

The Consumer Financial Protection Bureau (CFPB) announced the appointment of three experts to senior positions within the agency.

An audit conducted by the inspector general for the Justice Department found that, despite public statements to the contrary, mortgage fraud isn't a highly prioritized issue. FBI field offices visited by the Office of the Inspector General, including Baltimore, Los Angeles, Miami, and New York, listed mortgage fraud to be a low priority—if it was listed as one at all.

The U.S. Senate voted Tuesday to confirm Sarah Bloom Raskin as deputy secretary of the Treasury. In a statement, Treasury Secretary Jacob Lew said he is pleased the Senate showed broad support in confirming Raskin, adding, "The Treasury Department is gaining a proven and experienced leader who is dedicated to promoting economic prosperity, and enhancing business and consumer confidence."

While seemingly innocuous, the Consumer Financial Protection Bureau's (CFPB) push to change reporting requirements under the Home Mortgage Disclosure Act may have unintended consequences for both servicers and legal teams to assess discriminatory lending practices. The CFPB is inviting input on both the content and the method of reporting. Now is the time to speak up on these matters.

The leaders of the Senate Banking Committee announced Tuesday plans to move forward on a new proposal to wind down Fannie Mae and Freddie Mac in favor of a new government backstop for private financiers. According to committee chairman Tim Johnson (D-South Dakota) and ranking member Mike Crapo (R-Idaho), the newly unveiled reform proposal is the result of months of exploratory hearings and negotiations.

The Special Inspector General's office for the Troubled Asset Relief Program (SIGTARP) announced the fraud conviction of a former managing director at New York-based Jefferies & Co. According to Special Inspector Christy Romero, Jesse C. Litvak misrepresented asking prices on residential mortgage-backed securities (RMBS), pocketing the profits. "Trading in mortgage securities can be a complicated business, but what the defendant did was simple—he lied to, defrauded, and illegally overcharged customers out of pure greed to benefit Jefferies and himself," Romero said.