From a mortgage industry newsletter:[quote] Here's one growth industry - lobbying on behalf of Wells Fargo Bank: http://www.bradenton.com/2012/10/08/4230451/wells-fargo-incr...But lobbyists probably won't be able to help Wells--which prides itself on, among other things, having never ventured too far down the credit curve while other big-name lenders did and by doing everything by the book--with headlines like "U.S. Government Sues Wells Fargo." The U.S. government sued Wells Fargo over claims that the bank made reckless home mortgage loans for a decade. In a lawsuit filed yesterday, the government accused Wells Fargo "reckless underwriting" and fraudulently approving thousands of home loans that caused large-scale losses for the government's FHA DE [direct endorsement] program.Wouldn't it be fascinating to have Wells pull up its stakes, as it did with its wholesale operation, and let everyone else do FHA DE-related home loans? That's just what our government, and housing market, needs! (Hah!) Seriously, here is the story.http://www.bloomberg.com/news/2012-10-09/u-s-files-civil-mor... The smart money has Wells fighting it, right after it takes the time and resources to train regulators and investigators what DTI [debt-to-income], DE [direct endorsement], LTV [loan-to-value], and CLTV [combined loan-to-value] stand for, whether or not alimony should be included in the income calculation, and what "delegated" entails. [How can one sue over that which one doesn't understand?] Yes, there are advantages to being a bank, and being a big bank. But there are some possible disadvantages--like that darned stress testing. The FDIC (Federal Deposit Insurance Corporation) announced publication of its final rule regarding company-run stress testing required by the Dodd-Frank Act. The rule applies to covered institutions with total consolidated assets greater than $10 billion of which, as of June 30, there were 108 institutions. Here are 42 pages of fun. [quote]http://fdic.gov/news/board/2012/2012-10-09_notice_dis-a_res....
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