Government

The Federal Reserve Bank of Cleveland has released its commentary on the broader economic effects of the recent closure of local bank branches, as lenders struggle to maintain bottom line viability in the marketplace. The brief, developed by Emre Ergungor and Stephanie Moulton, is titled, Do Bank Branches Matter Anymore?, and the authors├â┬ó├óÔÇÜ┬¼├óÔÇ×┬ó conclusions indicate that the general answer to that large and looming question is a resounding yes, with considerable social impact as a net loss in communities.

A recent ruling by U.S. Court of Appeals in Washington, D.C., faulted the Securities and Exchange Commission for failing to perform a sufficiently thorough economic impact analysis before it moved forward with a new rule, according to Bloomberg News. The decision could roll over onto provisions established by the Dodd-Frank Act, delaying those provisions and preventing new rules from going into effect. Analysts say the court ruling may delay more Dodd-Frank rules.

Reforming Fannie Mae and Freddie Mac without anticipating changes from new limits to government-backed mortgages could make the fixed-rate mortgage a less available product, witnesses told lawmakers Wednesday.

Making the annual list of industry technology leaders for another consecutive year, Financial Industry Computer Systems, Inc., got named to the Top 50 Service Providers, compiled yearly by Mortgage Technology.

After an operation orchestrated by regulators over 10 states, Morris Plains-based Mortgage Access Corp., doing business as Weichert Financial Services, inked its name to a remittance in the amount of $3 million over a multitude of compliance and internal control deficiencies. Some ten agencies joined the effort, with actors including banking regulators from Connecticut, Louisiana, Kentucky, Massachusetts, North Carolina, New Jersey, New York, Pennsylvania, Virginia, and Vermont.

Carrington Mortgage Services, LLC, is expanding via newly acquired assets from American Home Equity Corp. (AHE). Focused on growing its origination component, Carrington structured its purchase deal with AHE to enhance the company├â┬ó├óÔÇÜ┬¼├óÔÇ×┬ós wholesale retail channel.

On Friday the House of Representatives put largely partisan weight behind a bill that would require the FDIC to investigate the 382 bank failures it has corralled with shutdowns since 2008. If reconciled with a similar bill passed by the Senate, H.R. 2056 could require the FDIC's inspector general to examine whether the current regulatory climate crimps lending for community banks. A House Financial Services Committee statement cites some 140 bank failures over 2009 and 157 over 2010, claiming their concentration in only 10 states.

A rule recently finalized by the Federal Trade Commission will take effect this month, prohibiting mortgage brokers, servicers, and nonbank lenders from advertising 19 practices it calls deceptive. The rule will enable the FTC, newly opened Consumer Financial Protection Bureau, and state regulators to issue civil monetary fines and penalties against wayward mortgage advertisers. The Mortgage Acts and Practices Rule prescribes a number of penalties for deceptive claims about mortgages.

Some 240 lenders across the country got in trouble with the Federal Housing Administration this year, with the federal agency announcing sanctions on Friday that included revocations of approval, suspensions, reprimands, and civil monetary fines. The FHA's Mortgagee Review Board slapped lenders with administrative penalties for scrimping on loan criteria required by the federal agency, which it said in some cases resulted in over-insured loans, excessive and duplicative fees for borrowers, among other things.

Total bank failures leveled out at 61 over last week as three more financial institutions faced closure and acquisition by other banks. The failures and acquisitions left the FDIC with a total $253.4 million tab.