Federal Reserve vice chair Janet Yellen criticized the aborted independent foreclosure reviews on Thursday, condemning the expenses of consultants involved in a process that the Fed helped set up.

WASHINGTON — A Senate Banking subcommittee will examine the role of independent consultants in the financial services industry, including Promontory Financial Group, at a hearing next week.

PL Capital has taken a $7 million stake in MutualFirst Financial (MFSF) in Muncie, Ind.

Fannie Mae and the Federal Housing Finance Agency's inspector general are taking a hard look at the bills the government mortgage giant receives from servicers who maintain foreclosed properties. If controls are found to be lax, servicers will likely face a clampdown.

Provident New York scouted other potential targets in the New York City region besides Sterling, but too many of them still think they can survive as independents, CEO Jack Kopnisky says.

Golden First Mortgage and its owner, David Movtady, were sued by the U.S. government and accused of defrauding a federal mortgage insurance program.

Elmira Savings Bank (ESBK) in New York is scaling back its involvement in the Treasury Department's small-business lending fund.

Municipal Employees Credit Union in Baltimore has agreed to buy Advance Bank.

Capitol Bancorp's (CBCRQ) deal to sell a struggling New Mexico subsidiary has fallen through.

Banks are increasing their research and monitoring of third parties as regulators take a closer look at outsourcing.

Many regional banks are too small to face the most onerous capital requirements yet big enough to grapple with the growing mountain of regulations. That, and some deft positioning, has left the group more profitable than its larger and smaller brethren alike. American Banker editors discuss the success of the regionals and the challenges they face.

Regulators have ordered Germany's Nordbank to improve anti-money-laundering safeguards at its New York branch.

The Consumer Financial Protection Bureau announced four enforcement actions Thursday against mortgage insurers, ordering them to pay $15 million in penalties and stop "improper kickbacks" to mortgage lenders in exchange for business.

FHFA's decision to sell foreclosures in bulk is hindering the rising Hispanic consumer segment, along with other first-time buyers, from driving a healthy housing rebound.

HopFed Bancorp in Hopkinsville, Ky., has drawn the ire of activist investor Joseph Stilwell over its recent agreement to buy another bank.

Intrust Bank in Wichita, Kan., has promoted its longtime chief operating officer to become its president.

Alliance Bank & Trust in Gastonia, N.C., has a new chief executive.

Jerry Craft, head of Corserv Solutions in Atlanta, says he has solved a longtime credit card dilemma for community banks.

The $3.8 billion-asset Provident said Thursday it would pay $344 million in stock for Sterling, or about 1.3 shares of Provident stock for each Sterling share.

Recent enforcement actions indicate banks must get better at evaluating the risks associated with their third-party service providers.